Power Metal begins work programme at Alamo
Metals exploration and development company Power Metal Resources updated the market on the Arizona-based Alamo Gold Project on Friday, in which it has the right to earn-in up to a 75% interest.
The AIM-traded firm said the planned December work programme had now commenced, with a field camp established and the contract geologists active on the property since Monday.
It said work was focussing on six areas where geological mapping had identified conglomerate units, which were prospective for hosting coarse gold.
Those basal conglomerates and coarse grained sedimentary units, which “unconformably overlie” older intrusive and metamorphic rocks, were interpreted to represent depositional environments resulting from the erosion of those older rocks, the board explained.
It said the fieldwork was 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 paleoplacer deposits in the younger rock units.
That work had the objective of delineating focus areas for the planned mini-bulk sampling programme, which was due to follow-on from the current field investigations subject to the receipt of the necessary permits.
The proposed mini-bulk sampling programme would help determine potential gold grade and distribution, part of the future work to determine whether the sediments hold potential for economic exploitation, Power Metal explained.
As well as determining the paleoplacer potential of the project, the technical team would also seek to narrow down the provenance of the coarse gold with a view to establishing its primary source.
The programme was being managed by a qualified geological contractor, using local labour and logistical support.
“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,” said chief executive officer Paul Johnson.
“The local exploration team are focusing detailed investigations on six specific areas which are considered to be prospective for hosting potential paleoplacer coarse grained gold deposits and which are linked to the areas where coarse gold and gold nuggets have already been identified.”
At 1438 GMT, shares in Power Metal Resources were up 0.87% at 2.32p.