Alamo Gold Project - USA - Exploration Update

RNS Number : 3632I

Power Metal Resources PLC

11 December 2020

 

11 December 2020

Power Metal Resources plc ("Power Metal" or the "Company")

Alamo Gold Project - Arizona USA - Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  provide an exploration update for the Arizona USA based Alamo Gold Project (the "Project") in which Power Metal has the right to earn-in up to a 75% interest.

HIGHLIGHTS:

- The planned December 2020 work programme at the Alamo Project has now commenced with a field camp established and the contract geologists active on the property since Monday.

- Work is focussing on six areas where geological mapping has identified conglomerate units which are prospective for hosting coarse gold.  These basal conglomerates¹ and coarse grained sedimentary units which unconformably overlie older intrusive and metamorphic rocks, are interpreted to represent depositional environments resulting from the erosion of those older rocks.

- Fieldwork is focussing on the examination of the basal contacts in the six areas with the objective of identifying geological environments favourable for transport and subsequent dispersal of coarse gold and gold nuggets as palaeoplacer deposits² in the younger rock units.

- This work has the objective of delineating focus areas for the planned mini-bulk sampling programme which is due to follow-on from the current field investigations subject to the receipt of the necessary permits.  The proposed mini-bulk sampling programme will help determine potential gold grade and distribution, part of the future work to determine whether the sediments hold potential for economic exploitation.

- As well as determining the palaeoplacer potential of the Project the technical team will also seek to narrow down the provenance of the coarse gold with a view to establishing its primary source.

-  The programme is being managed by a qualified geological contractor utilising local labour and logistical support.

CHIEF EXECUTIVE OFFICER'S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

"We are very pleased to report that the geological field team commenced the planned December work programme at the Alamo Project in Arizona this week.

The local exploration team are focusing detailed investigations on six specific areas which are considered to be prospective for hosting potential palaeoplacer coarse grained gold deposits and which are linked to the areas where coarse gold and gold nuggets have already been identified."

THE PROJECT

In Overview

The Alamo gold project is a package of mining claims covering an area of approximately 946 acres and is situated in west-central Arizona, USA. The Project was originally identified as prospective for gold following the discovery of native gold nuggets (the "Nuggets") near surface in numerous locations within the Project boundaries.

The geological environment supports further exploration to investigate the source of the nugget gold and the potential for a large mineralised gold system. In addition, the region in which the Project is situated is prospective for precious and base metals, with regional mines that have produced silver, lead, gold, zinc and copper.

Notes:

¹ Basal conglomerates: a conglomerate is a clastic sedimentary rock that is composed of a substantial fraction of rounded to subangular gravel-size clasts. A basal conglomerate forms the bottom stratigraphic unit of a sedimentary series and that rests on a surface of erosion (the basal contact), thereby marking an unconformity.  In rare cases the basal conglomerate can also host a palaeoplacer deposit (see below).

² Palaeoplacer deposits:  consist of accumulations of valuable minerals, in this case gold, formed by gravity separation due to differing particle densities in a sedimentary environment (with the resultant deposits referred to as 'placers').  The 'palaeo' prefix denotes that those placer deposits have become cemented or lithified post deposition.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

 

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