REG - Power Metal - Alamo Gold Project - USA - Exploration Update

Power Metal ResourcesAnnouncement

23/11/2021 07:00

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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:

 

o 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.

 

o 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/
(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       Overlimit analysis results
                                                         testing being undertaken where sample grade exceeded previous assay method
                                                         detection limits
 Ditau Project               Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                         accelerated drilling targeting rare-earth elements and base metals

 Kalahari Copper Belt        Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling
                                                         exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                         licence areas
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) 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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