Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “We are pleased with the progress made regarding our assessment of the Alamo Project. The identification of a potential porphyry engine for the phenomena seen at surface is of particular interest.
In addition, we are encouraged by the confirmation of near-surface gold nuggets, through a very limited metal detecting exercise and the potential for a proximal bedrock gold source within the Project area.
We now need to ensure that the claims package is complete and covers the prospective ground with a sufficient buffer and will undertake some additional work to ratify our assumptions to date.
We will discuss in greater detail the terms of a potential transaction upon conclusion of our due diligence.
I look forward to providing our shareholders with further updates in due course.”
Arizona USA – Alamo Project Update
Power Metal Resources plc (LON: POW) the AIM-listed metals exploration and development company is pleased to announce developments in respect of the Alamo project (the “Project”) in Arizona, USA.
Readers are advised to review the Company’s announcement in respect of the Alamo Project dated 3 December 2019 and which can be viewed through the following link:
· Initial due diligence in respect of the Project has been completed successfully, including a site visit by the POW Chairman, POW CEO and the Company’s Competent Person.
· Project shows evidence of possible epithermal mineralisation possibly related to a deep-seated porphyry intrusion. Evidence of intrusive dykes and structural conduits support the Project’s prospectivity.
· Presence of gold nuggets within the Project area was confirmed during the POW visit. Under POW oversight an approximate 3m2 test pit, up to 30cm deep, was excavated in an area of undisturbed vegetated ground coinciding with the perceived trend of intrusive dykes. Using a metal detector supplied by a local prospector, three small gold nuggets were recovered from the material excavated.
· This sampling demonstrated the presence of coarse, near-surface gold while the topographical surface morphology supports a likely proximal hard-rock source for the gold. The findings also provide some support to reports that some 60 ounces of gold nuggets have been recovered within the Project area (the largest nugget reportedly weighing approximately 5 ounces).
· Findings of the POW visit also indicate that the package of claims should be extended to include a sufficient buffer around the prospective area.
· The vendors have waived the previous extension fees (comprising the issue of a further 2,911,387 new ordinary shares of 0.1 pence each (“New Ordinary Shares”) to the vendors at a price of 0.4p per share (£11,646) for an additional 30 days added to the due diligence period), and POW have agreed to spend a minimum of US$20,000 to complete additional exploration work and secure additional ground, in exchange for an extension to the due diligence period to 20 April 2020.
· Additional exploration work is likely to include the acquisition and assessment of satellite remote sensing datasets to obtain additional information on structure and alteration mapping.
Full update www.share-talk.co.uk
Notes to Editors:
Power Metal Resources plc (LON: POW) is an AIM-listed metals exploration and development company exploring for the key metals used in power generation, transmission, storage and utilisation. The Board and team of advisors, who have proven expertise in exploration, mining and project generation, have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors to gain exposure to the power metal commodity suite, particularly cobalt, lithium, copper and nickel.
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