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Power Metal (POW)

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Tuesday 23 November, 2021

Power Metal

Alamo Gold Project - USA - Exploration Update

RNS Number : 1956T
Power Metal Resources PLC
23 November 2021
 

23 November 2021

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

Alamo Gold Project - USA - Exploration Update

Test Pitting Programme Commences at the Alamo Gold Project in Arizona USA, Targeting Coarse Gold Mineralisation

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  provide an exploration update for the Alamo Gold Project (the "Project"), located in west-central Arizona, USA.  

Power Metal has the right to earn-in up to a 75% interest in the Project and full earn-in details were published in the Company's announcement on 22 July 2020.

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

"The Alamo Gold Project has a history of gold nugget discoveries, and coarse gold palaeoplacer mineralisation is what we are targeting in this next phase of work.

With the necessary exploration permits now in place the much-anticipated test pitting programme at Alamo is finally commencing. This work is fully-funded, having been paid for by Power Metal in advance as part of the year 1 earn-in requirements ending July 2021.

We are pleased to have our project partners carrying out the work, and we will look forward to updates from the field and the receipt of results as the programme progresses."

PROGRAMME HIGHLIGHTS:

- The 2021 test pitting programme on the Alamo Project has now commenced with the geological team, excavator, metal detectorist, and various geological support staff on site as of Monday, 22 November 2021.

 

- Permits allowing for the excavation of up to 6 test pits (3 at Breccia Hill and 3 at Big Boulder Wash), as well as 5 percussion drill holes have been received from the United States Bureau of Land Management ("BLM"). The bond for the proposed work programme has been lodged with the BLM allowing the outlined work to be undertaken on the Project.

 

- The US$40,000 deposit for this phase of work was prepaid by Power Metal in June 2021, bringing the total spend for the year to July 2021 over the US$100,000 minimum as outlined in the earn-in agreement signed with Frisco Gold Corp ("Frisco Gold").

 

- The focus of this work programme will be the Big Boulder Wash and Breccia Hill Zones, and will include:

 

Up to 3 test pits will be excavated at Big Boulder Wash where previous work has identified basal conglomerates that are highly prospective for hosting palaeoplacer coarse gold deposits within the district.1,2 The excavated test pits will be investigated by the on-site metal detectorist and geologists, with the aim of identifying coarse nuggety gold at the exposed geological contact zone. 

 

Up to 3 test pits will be excavated at Breccia Hill - a domed shape hill which was originally identified by a bulk leach extractable gold ("BLEG") geochemical survey. Previous work at Breccia Hill identified extensive hydrothermal alteration, as well as quartz stockwork veining and sulphide mineralisation, within multiple breccia units mapped within the property. Following excavation, each pit will be mapped and sampled in detail by the geologist and metal detectorist.

 

Contingent on results from this test pitting programme, which will include visual inspection of test pits for coarse gold mineralisation as well as laboratory assay of any rock samples of interest, a decision will be made on whether to follow up with a proposed second phase of work, which will include percussion drilling.

 

THE PROJECT

The Alamo gold project is a package of mining claims covering an area of approximately 946 acres situated in west-central Arizona, USA. The Project was originally identified as prospective for gold following the discovery of native gold 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 nearby active and historic 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.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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

Power Metal Resources plc

 

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

 

SP Angel Corporate Finance (Nomad and Joint Broker)

 

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

 

SI Capital Limited (Joint Broker)

 

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

 

First Equity Limited (Joint Broker)

 

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

Project

Location

POW %

Work Completed or Underway

Results Awaited

 

 

 

 

 

Alamo Gold Project

USA

Earn-in to 75%

Excavation of multiple test pits and mapping & sampling.

Field results from on-site work programme.

Athabasca Uranium

Canada

100%

Phase I field exploration completed

Laboratory assay results of samples collected for uranium and REEs

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Laboratory assay results of samples collected

Silver Peak

Canada

30%

Following drill programme demonstrating bonanza grade silver, overlimit testing being undertaken where sample grade exceeded previous assay method detection limits

Overlimit analysis results

Ditau Project

Botswana

50%

Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals

 

Field programme findings and defined drill targets for near term drilling.

Kalahari Copper Belt

Botswana

50%

Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas

Field programme findings and defined drill targets for near term drilling

Tati Gold/Nickel

Botswana

100%

Reverse circulation drill programme completed

Laboratory assay results awaited

Victoria Goldfields

Australia

49.9%

Ongoing exploration across 848km2 of granted exploration licences

 

Results from field programme including drill targets for near term drilling

Wallal Gold/Copper Project

Australia

83.33%

Passive seismic and 2D seismic processing work programme completed

Results awaited

 

 

 

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