Power Metal Resources (AIM:POW)
has finalised its initial due diligence at the Alamo Project in Arizona, the company told investors on Tuesday morning.
The London-listed resource company outlined evidence indicating possible epithermal mineralisation which could be related to a deep-seated porphyry intrusion at the project.
Paul Johnson, Chief Executive of Power Metal Resources, said that potential porphyry engine for the phenomena seen at surface was “of particular interest” to the group.
Evidence of intrusive dykes - vertical sheets of igneous rock - and structural conduits, also support the prospectivity of Alamo.
Shares in Power Metal Resources were trading 7.14% at 0.375p on Tuesday afternoon.
During a recent site visit, the presence of gold nuggets was confirmed, the company noted, following an excavated test pit in an area of ‘undisturbed vegetated ground’.
The sampling demonstrated ‘coarse, near-surface gold’ whilst the topographical surface morphology supports a likely hard-rock source for the gold, the company noted.
Johnson said the company was “encouraged” by the near-surface gold discovery and potential for a proximal bedrock gold source within the Project area.
The due diligence period at Alamo has now been extended to 20 April 2020, the statement explained.
The company noted that additional exploration work would likely include the acquisition and assessment of satellite remote sensing datasets to obtain information on structure and alteration mapping.
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