Power Metal Resources PLC (AIM:POW) has highlighted the first key set of exploration results from Golden Metal Resources PLC, the company's 83.13% owned subsidiary, which is planning to list on the London capital markets this quarter.
In a statement, Paul Johnson, chief executive officer of Power Metal Resources PLC, commented: "The news from Golconda Summit today is the first key set of exploration results, and they have ratified our belief in the potential of the Project to host a Carlin-type gold deposit. As a result, Golconda has been designated as a priority Project for follow-on exploration and subsequent drilling."
He added: "The combination of the strategically significant Pilot Mountain Project combined with the blue-sky exploration upside offered by Golconda Summit, as confirmed today, makes Golden Metal, in our view, a unique investment proposition focused on Nevada, USA and we look forward to the planned listing in London."
In a statement on Thursday, Golden Metal Resources noted that recently obtained historical dataset from a high-resolution geochemical soil survey covering the entirety of the Golconda Summit Project had highlighted three zones of strongly anomalous arsenic and gold mineralisation for further investigation.
The company said rock sample assay results from a geological mapping and sampling programme over Golconda Summit, undertaken by Golden Metal's in-country senior geological consultant, have confirmed strong arsenic (pathfinder for Carlin-type gold mineralisation) and gold anomalism.
At the Garfield Project, it added, assay results are pending for the recently completed soil geochemical survey. Meanwhile, at the Pilot Mountain Project three-dimensional (3D) modelling of the high-resolution induced polarisation (IP) geophysics survey data collected over Golden Metal's flagship project has been commissioned, with results eagerly awaited.
Oliver Friesen, chief executive officer of Golden Metal Resources, commented: "Our 100% owned flagship Pilot Mountain Project has been a source of particular focus for GMT and our investors, with good reason, as we continue to engage in various discussions regarding possible technical and financial engagement at a project level.
"Work has continued in parallel across GMT'S other Nevada interests and today's update is focused on significant gold anomalism confirmed across the Golconda Summit Project where we are targeting a Carlin-type gold discovery."
Friesen added: "Review of newly acquired historical datasets, together with recently completed detailed geological mapping and rock sampling at Golconda Summit have delivered clear evidence of gold and arsenic anomalism. These results, in GMT's technical view, further underpin the strong value proposition associated with bringing this compelling gold opportunity to UK investors alongside the rest of our exciting Nevada-focused project portfolio.
"We are seeing a steady improvement of market conditions, and particularly those surrounding junior mining and exploration companies. As a result, we are seeking to secure the UK listing of Golden Metal Resources as soon as possible."