Shares in Power Metal Resources PLC (LON:POW) jumped by 7% at the open on Tuesday, after the company revealed it has completed initial due diligence at the Alamo project in Arizona.
The Alamo project shows evidence of possible epithermal mineralisation related to a deep-seated porphyry intrusion. Evidence of intrusive dykes and structural conduits also support the prospectivity of the project.
The presence of gold nuggets was confirmed during a recent visit by senior Power Metals executives, after a test pit 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. What’s more, the topographical surface morphology supports a likely proximal hard-rock source for the gold.
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.
"We are pleased with the progress made regarding our assessment of the Alamo project,” said Power Metals chief executive Paul Johnson.
“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.”