Power Metal Resources (LSE:POW) has extended the size of its Alamo gold project in Arizona, US, after a recent exploration programme identified a number of additional areas prospective for mineralisation.

Alamo is a package of mining claims first identified as prospective for gold following the discovery of native gold nuggets of up to five ounces near the surface in numerous locations.

Power Metal, which has the right to earn-in to a 75% interest in the project, believes the area warrants further exploration to investigate the source of the precious metal and the potential for a large mineralised gold system. Adding to this promise is the fact that west-central Arizona- the area in which the project is based – boasts numerous mines that have produced significant quantities of silver, lead, gold, zinc, and copper.

In August, Power Metal launched a reconnaissance level exploration survey of Alamo, which focused on assessing the key areas where the bulk of the gold nuggets had previous been found.

On Friday, the firm announced that in light of the results of the work, it has decided to stake a further nine Alamo claim blocks. This widens the size of the project by 180 acres to an overall total area of 946 areas.

"We are very happy to support the enlargement of the Alamo Gold Project in Arizona following the encouraging results of the August reconnaissance work and further gold nugget discoveries at the Project,” said Power Metal’s chief executive Paul Johnson.

Follow-on exploration work will now continue, including detailed geological mapping along with trenching, pitting, and mini-bulk sampling. The aim of the work is to further ascertain the distribution and abundance of native gold nuggets within the project area.

Given the nature of the mineralisation and its near-surface location, Power Metal said it believes that bulk sampling will give it a more accurate assessment of gold prospectivity than drilling.

The firm expects the work to be conducted through the first three weeks of December, and it will be managed by a qualified geological contractor using local labour and logistical support.

The local exploration team have designed a follow on programme of trenching and bulk sampling, which is currently planned to commence in December, with a view to building an assessment of gold prospectivity,” added Johnson.

Author: Daniel Flynn

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