REG - Power Metal - Athabasca Basin - Uranium Portfolio Update

Power Metal ResourcesAnnouncement

20/02/2023 07:00

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RNS Number : 3620Q  Power Metal Resources PLC  20 February 2023

20 February 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Basin - Uranium Portfolio Update

Power Metal Acquires via Staking Hawkrock East and Hawkrock West Uranium
Properties, Haresign Bay Property Size Reduced

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

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

"There is significant competition for high quality uranium ground in and
surrounding the Athabasca Basin in Saskatchewan, Canada. As outlined below,
there were other uranium companies also lodging applications over the Haresign
Bay Property which we announced on 2 February 2023 and which has reduced the
amount of ground we were able to secure at that project.

The interest in the Athabasca Basin is noticeably increasing meaning we must
accelerate the acquisition of additional ground. By moving quickly, the Power
Metal technical team has already taken action by staking an additional two
properties located within the Basin.

Given the recognition of uranium as a key commodity for future power
generation we are also accelerating our efforts to secure projects in other
regions as quickly as possible to build our exposure.  The level of interest
in uranium exploration extends across many high-profile regions globally and
there is no time to waste on this."

HIGHLIGHTS:

§ All claims were acquired by direct mineral claim staking by the Power Metal
technical team. They were acquired through the Mineral Administration Registry
Saskatchewan ("MARS") electronic registry system on 15 February 2023. The
staking acquisitions represent significant additions to the Company's uranium
portfolio. Further information on the staking process can be found in the
Further Information section below.

 

§ The newly acquired Hawkrock East and Hawkrock West uranium properties
(collectively the "Properties") cover a total combined area of 4,280-hectares
(42.80km(2)) within the prospective Snowbird Tectonic Zone ("STZ") in the
northeastern corner of the Athabasca Basin.

 

·    Historical exploration completed covering the Hawkrock East property
identified elevated radon, uranium and methane-in-groundwater coincident with
largely untested electromagnetic ("EM") geophysics conductors. Previous
drilling completed by the Saskatchewan Mineral Development Corporation
("SMDC") in 1981 identified major faulting and pelitic geology which is
considered by the Company to be comparable to many Athabasca basin
unconformity-related uranium deposits.

 

§ The Hawkrock West property, located 12km to the west of Hawkrock East, is
centred around multiple EM conductors which are coincident with elevated
uranium pathfinder elements (incl. As, Co, Ni, Th and Pb) in lake sediment
sample assays. Previous drilling completed by D.F Exploration Ltd in 1997
returned elevated uranium, thorium and radiation counts-per-second ("CPS")
readings of drill core in close proximity to the Athabasca sandstone and
basement unconformity.

 

§ Due to a correction following concurrent competing applications within the
MARS electronic claim registry, Power Metal's previously staked Haresign Bay
Property has been reduced in size from 3,189-hectares (31.89km(2)) to
165-hectares (1.65km(2)) with two other uranium focused companies securing the
balance. The Kernaghan Property was unaffected and remains as previously
announced.  This reduced the staking cost of Haresign Bay Property to CAD$300
from CAD$1,913.51.  Both Haresign Bay and Kernaghan properties come with a
two-year term with no minimum spend requirement and which can then be extended
for subsequent years by spending an aggregated minimum of CAD$72,623 per
annum.

 

§ With the addition of the Properties, as well as the reduction of the
Haresign Bay Property, the Power Metal Athabasca uranium portfolio now
consists of sixteen properties, including two conditional disposals(1,2), with
a combined total area of 965.73km(2).

FURTHER INFORMATION

Geology

The Properties are located in the northeastern corner of the prolific
Athabasca Basin and within the STZ. The STZ is a 200km wide structural zone
which crosses the Athabasca Basin in a northeast-southwest orientation. On the
other side of the basin, the STZ is host to the Centennial unconformity
related uranium deposit owned by a joint venture between Orano SA and Cameco
Corp., where drilled intersections include up to 34m @ 8.8% U(3)O(8).(3)

Mineral Claim Staking Process

The mineral claims constituting the Properties were acquired directly through
the Mineral Administration Registry Saskatchewan ("MARS") electronic claim
registry system.

Where a previous claim owner is unable to satisfy the claim maintenance
requirements, that ground is reopened to third party staking. The total cost
of staking the Properties was a combined CAD$3,340.75. The newly staked
licences come with a two-year term with no minimum spend requirement and which
can then be extended for subsequent years by spending an aggregated minimum of
CAD$83,519 per annum.

The Properties staked are pending licence grant which is expected shortly.

Next Steps

The Company is preparing fact sheets which will include further information
and maps for newly acquired staking. These will be released to the market once
ready. Furthermore, detailed data rooms are being prepared.

 

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.

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
                                 MC00016158      3,242       32.42
 Thibault Lake Uranium Property  MC00015077      2,206       22.06
                                 MC00015659      2,195       21.95
                                 AC00018709      1,982       19.82
 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(1)        MC00015213      1,323       13.23
 Reitenbach Uranium Property(2)  MC00015214      2,135       21.35
                                 MC00015474      1,235       12.35
                                 MC00015655      4,570       45.7
                                 MC00015656      5,322       53.22
                                 MC00015657      886         8.86
                                 MC00015824      528         5.28
                                 MC00016155      1,333       13.33
 Reindeer Lake                   MC00015522      3,336       33.36
 Porter Lake                     MC00015561      5,657       56.56
                                 MC00015562      5,199       51.98
 Old Woman Rapids                MC00015563      4,851       48.51
                                 MC00015564      5,063       50.63
                                 MC00015565      3,044       30.44
 Durrant Lake                    MC00016142      5,866       58.66
 Badger Lake                     MC00016253      1,671       16.71
 Haresign Bay                    MC00016910      100*        1.00*
                                 MC00016911      33*         0.33*
                                 MC00016912      33*         0.33*
 Kernaghan                       MC00016760      4,566       45.66
 Hawkrock East                   MC00016968      2,345       23.45

 Hawkrock West                   MC00016967      3,220       32.20

 Total Licence Holding Area                      96,573      965.73km(2)

*Resulting licence area after reduction

NOTES AND REFERENCES

1:                    The E-12 Property, currently included
as one of the 16 uranium portfolio properties, is subject to a conditional
disposal to Teathers Financial PLC for a consideration of £250,000. Work is
ongoing to complete that transaction. See Company announcement released on 4
November 2022.

2:                    The Reitenbach Property, currently
included as one of the 16 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 released on 8 August 2022.

3:                    Jiricka, D.E., and Witt, G., 2008,
The Centennial deposit-an atypical unconformity-associated uranium deposit:
Calgary, Mining Forum, April 2008.

 

Glossary:

Electromagnetic Conductors: In the Athabasca Basin area, uranium
mineralisation is often associated with graphitic fault conductors within the
crystalline basement. Graphite and faults are more conductive than the
surrounding rocks, and thus offer a proven geophysical target for future
exploration.

 

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.

 

 

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