TIDMPOW

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/ 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             Results Awaited 
                                                     or Underway 
 
 Alamo Gold               USA      Earn-in    Excavation of multiple      Field results from 
  Project                           to 75%     test pits and mapping       on-site work programme. 
                                               & sampling. 
                      ----------  ---------  --------------------------  ------------------------- 
 Athabasca              Canada       100%     Phase I field exploration   Laboratory assay 
  Uranium                                      completed                   results of samples 
                                                                           collected for uranium 
                                                                           and REEs 
                      ----------  ---------  --------------------------  ------------------------- 
 Authier North          Canada     Earn-in    Soil & rock sampling        Laboratory assay 
  Lithium                           to 100%    completed                   results of samples 
                                                                           collected 
                      ----------  ---------  --------------------------  ------------------------- 
 Silver Peak            Canada       30%      Following drill             Overlimit analysis 
                                               programme demonstrating     results 
                                               bonanza grade silver, 
                                               overlimit testing 
                                               being undertaken 
                                               where sample grade 
                                               exceeded previous 
                                               assay method detection 
                                               limits 
                      ----------  ---------  --------------------------  ------------------------- 
 Ditau Project         Botswana      50%      Preparatory exploration     Field programme 
                                               work underway on            findings and defined 
                                               target I10 leading          drill targets for 
                                               to planned accelerated      near term drilling. 
                                               drilling targeting 
                                               rare-earth elements 
                                               and base metals 
                      ----------  ---------  --------------------------  ------------------------- 
 Kalahari Copper       Botswana      50%      Exploration programme       Field programme 
  Belt                                         underway across             findings and defined 
                                               the South Ghanzi            drill targets for 
                                               Project and further         near term drilling 
                                               exploration at 
                                               the more recently 
                                               acquired South 
                                               Ghanzi Extension 
                                               and Mamuno licence 
                                               areas 
                      ----------  ---------  --------------------------  ------------------------- 
 Tati Gold/Nickel      Botswana      100%     Reverse circulation         Laboratory assay 
                                               drill programme             results awaited 
                                               completed 
                      ----------  ---------  --------------------------  ------------------------- 
 Victoria Goldfields   Australia    49.9%     Ongoing exploration         Results from field 
                                               across 848km(2)             programme including 
                                               of granted exploration      drill targets for 
                                               licences                    near term drilling 
                      ----------  ---------  --------------------------  ------------------------- 
 Wallal Gold/Copper    Australia    83.33%    Passive seismic             Results awaited 
  Project                                      and 2D seismic 
                                               processing work 
                                               programme completed 
                      ----------  ---------  --------------------------  ------------------------- 
 

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