REG - Power Metal - Athabasca Basin - Strategic Uranium Project Staked

Power Metal ResourcesAnnouncement

02/09/2022 07:01

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RNS Number : 0287Y  Power Metal Resources PLC  02 September 2022

2 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Basin - Strategic Uranium Project Staked

Power Metal Acquires via Staking the Strategic Durrant Lake Uranium Property

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an exploration update concerning its uranium property portfolio
focused on the Athabasca Basin area in Saskatchewan, Canada.

HIGHLIGHTS:

§ Durrant Lake Uranium Property ("Durrant Lake" or the "Property") acquired
by direct Mineral Claim staking. The newly acquired claim covers a total area
of 58.66km(2) within the eastern side of the Athabasca Basin and is bordered
on three sides by claims held by uranium focussed companies Orano SA, Denison
Mines Corp and ISO Energy Ltd.

 

§ Durrant Lake, which was staked directly by the Power Metal technical team,
is the first uranium portfolio property to be situated within the confines of
the prolific Athabasca Basin.

 

§ With the addition of Durrant Lake, the Power Metal Athabasca uranium
portfolio now consists of eleven properties, including a conditional
disposal(1), with a combined total area of 780km(2).

 

§ The Athabasca Basin hosts over seven past and current uranium operations
including McArthur River, the world's largest high-grade uranium deposit and
the Cigar Lake mine which was the world's top uranium producer in 2020.(2)

 

A map of the Durrant Lake Uranium Property location is available at the
following website link:
https://www.powermetalresources.com/durrant-lake-uranium-overview/
(https://www.powermetalresources.com/durrant-lake-uranium-overview/)

Paul Johnson, Chief Executive Officer of Power Metal Resources plc,
commented:

"The Durrant Lake Uranium Property located within the Athabasca Basin, which
hosts some of the world's highest grade uranium deposits, represents a
significant addition to the Company's already sizeable Saskatchewan focused
uranium portfolio.

We look forward to providing further updates on developments across our
Athabasca uranium interests in the near term."

FURTHER INFORMATION

Mineral Claim Staking Process

The Mineral Claim constituting the Durrant Lake Uranium Property was acquired
directly through the Mineral Administration Registry Saskatchewan (MARS)
electronic registry system.

Where a previous claim owner is unable to satisfy the claim maintenance
requirements, that ground becomes reopen to third party staking at a set time
each month. At reopening, areas of high uranium prospectivity can become
segmented as different parties compete to register Mineral Claims over the
newly opened ground. In the case of the open ground covering the wider Durrant
Lake area, Iso Energy Ltd acquired approximately 4.30 km(2) of the newly
reopened ground, with Power Metal acquiring 58.66km(2), representing the vast
majority of the newly available area (c. 62.96km(2)).

The cost of staking of the Property was Canadian $3,519.78. The newly staked
licence comes with a two-year term with no minimum spend requirement and which
can then be extended for subsequent years by spending a minimum of Canadian
$87,990 per annum.

The Durrant Lake Property

The Durrant Lake Uranium Property is surrounded by ground held by major
uranium operators and explorers including Orano SA, Denison Mines Corp (TSX:
DNN) and Iso Energy Ltd (TSX-v: ISO).

The Hurricane Zone, which is part of the Iso Energy Ltd's 100% owned Laroque
East property, is a 575m long by 75m across and up to 11m thick uranium
deposit that is located less than 15km northeast of the Durrant Lake Uranium
Property. The Hurricane Zone includes notable drill intercepts of up to 33.9%
U(3)O(8) over 8.5m, including 57.1% U(3)O(8) over 5.0m.(3)

Property Geology

Geological reports highlight that the Property is underlain by around 200-300m
of sandstone that sits unconformably over crystalline basement, which is
logged as metasedimentary and intrusive lithologies of the Mudjatik Domain.

The unconformity between the sandstone and the underlying crystalline basement
lithologies is the main target for uranium exploration in Saskatchewan, and
deposits such as McArthur River (416 Mlb at 15% U(3)O(8)), Cigar Lake (152.4
Mlb at 7.55% U(3)O(8)), Hurricane and Phoenix (60 Mlb at 19.1% U(3)O(8)) are
located at, or in close proximity to this geological contact zone.

URANIUM PROPERTIES - HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc ("Power Canada"),
which acts as the holding Company for certain Canadian project operations.
Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd,
which is the holder of the Company's Athabasca uranium portfolio.

The Power Metal Canada Uranium Property Map is available to view at the
following link:

https://www.powermetalresources.com/power-metal-canada-uranium-map/
(https://www.powermetalresources.com/power-metal-canada-uranium-map/)

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

 

 Project                        Licence ID      Area        Area

                                                (Hectare)   (km(2))
 Clearwater Uranium Property    MC00015079      1,110       11.1
                                MC00015083      563         5.63
                                MC00015082      3,191       31.91
                                MC00015151      760         7.6
                                MC00015646      761         7.61
                                MC00015658      1,541       15.41
 Tait Hill Uranium Property     MC00015078      1,576       15.76
                                MC00015081      968         9.68
                                MC00015153      1,530       15.3
                                MC00015152      1,886       18.86
                                MC00015647      725         7.25
                                MC00015648      1,129       11.29
 Thibaut Lake Uranium Property  MC00015077      2,206       22.06
                                MC00015659      2,195       21.95
 Soaring Bay Uranium Property   MC00015080      1,255       12.55
                                MC00015155      3,375       33.75
                                MC00015874      748         7.48
                                MC00015875      2,529       25.29
 Cook Lake Uranium Property     MC00015212      984         9.84
 E-12 Uranium Property          MC00015213      1,323       13.23
 Reitenbach Uranium Property*   MC00015214      2,135       21.35
                                MC00015474      1,235       12.35
                                MC00015655      4,570       45.7
                                MC00015656      5,322       53.22
                                MC00015657      856         8.56
                                MC00015824      528         5.28
 Reindeer Lake**                MC00015522      3,336       33.36
 Porter Lake**                  MC00015561      5,656       56.56
                                MC00015562      5,198       51.98
 Old Woman Rapids**             MC00015563      4,851       48.51
                                MC00015564      5,063       50.63
                                MC00015565      3,044       30.44
 Durrant Lake***                AC00018000      5,866       58.66
 Total Licence Holding Area                     78,018      780 km(2)

*Reitenbach Property conditionally disposed to Teathers Financial PLC as
announced 8 August 2022.

**Property acquisition announced on 25 July 2022 - licence transfers complete.

***Newly staked Property

 

NOTES AND REFERENCES

1:                    The Reitenbach Property, currently
included as one of the 11 uranium portfolio properties, is subject to a
conditional disposal to Teathers Financial PLC for a consideration of
£360,000. Work is ongoing to complete that transaction. See Company
announcement of 8 August 2022.

2:                    World Nuclear Association:
https://world-nuclear.org/information-library/country-profiles/countries-a-f/canada-uranium.aspx
(https://world-nuclear.org/information-library/country-profiles/countries-a-f/canada-uranium.aspx)

3:                    IsoEnergy Ltd, Larocque East summary:
https://isoenergy.ca/projects/larocque-east/
(https://isoenergy.ca/projects/larocque-east/)

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a
qualified geologist and acts as the Competent Person under the AIM Rules -
Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal
consultant working for Mining Analyst Consulting Ltd which has been retained
by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:

 Power Metal Resources plc
 Paul Johnson (Chief Executive Officer)                                          +44 (0) 7766 465 617

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Charlie Bouverat                                                    +44 (0) 20 3470 0470

 SI Capital Limited (Joint Broker)
 Nick Emerson                                                                    +44 (0) 1483 413 500

 First Equity Limited (Joint Broker)
 David Cockbill/Jason Robertson                                                  +44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration
company which finances and manages global resource projects and is seeking
large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base and strategic
metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie distributions of assets.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

 

 Project                Location  Current          Work Completed or Underway                                                    Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Ground exploration programme underway at 3 properties.  Continuing data       Results from ground exploration including spectrometer analysis, sampling and
                                                   analysis across the property portfolio.                                       mapping.
 Authier North Lithium  Canada    Earn-in to 100%  Property Evaluation Report completed.                                         Update covering exploration plans for target areas identified during the
                                                                                                                                 Evaluation.
 Molopo Farms           Botswana  53%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Commencement of T1-6 drill programme, and findings therefrom and results from
                                                   surveys over T1-6, T1-14, T1-3 and T2-3 targets.                              MLEM surveys.
 Tati Project           Botswana  100%             RC drilling underway and previously sampling of mine dumps complete.          Review of mine dumps sampling, and processing potential.  Results from RC
                                                                                                                                 drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required.  These interests are summarised in the table below:

 

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 28.19%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com)
                                  announced 8.7.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found at

                                                                           www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 

 

 

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