REG - Power Metal - Athabasca Uranium – Exploration Update

Power Metal ResourcesAnnouncement

02/12/2022 10:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221202:nRSB4428Ia&default-theme=true

RNS Number : 4428I  Power Metal Resources PLC  02 December 2022

2 December 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Uranium - Exploration Update

Summer 2022 Exploration Programme Delivers High-Grade Uranium Rock Samples up
to 4.70% (47,000 ppm) U(3)0(8)

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces results from its recently completed 2022 Phase I field programme
covering its Thibault Lake, Clearwater and Tait Hill uranium properties
located in the Athabasca Basin area in Saskatchewan, Canada.

Following the earlier releases announcing the fieldwork commencement on 10
August 2022, as well as the completion of work on 5 October 2022, full assays
results have been received, analysed and compiled by the Company's technical
team. The announcements may be viewed in the links below:

https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15578933
(https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15578933)

https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15659146
(https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15659146)

HIGHLIGHTS:

·    A total of 46 rock samples were collected as part of the 2022 Phase I
programme including 29 samples from Tait Hill, 8 from Thibaut Lake, and 8 from
Clearwater. All samples were analysed at the Saskatchewan Research Council
laboratory in Saskatoon, Saskatchewan. Power Metal employed a
uranium-exploration analytical package which includes uranium, various
base/trace-metals, as well as a suite of rare-earth elements (REEs).

 

·    Two extremely high-grade samples were returned from Thibault Lake
including individual assay results up to 4.7% and 2.4% U(3)O(8), with further
highly radioactive samples located in close proximity.

 

·    During fieldwork on Clearwater, historical mine shafts and former
workings were identified, illustrating the property's overall prospectivity;
the Power Metal sampling carried out as part of this programme identified up
to 1,120 ppm (0.112%) U(3)O(8).

 

·    Work on Tait Hill has supported the potential identification of a
target considered to be geologically analogous to the Rössing Uranium deposit
in Namibia, with up to 825 ppm Uranium ("U") identified at the Mullis Lake
Target which will be one of the focuses of future work programmes.

 

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

"We are particularly excited by our Athabasca uranium portfolio, with twelve
properties covering some 841km(2) of footprint in this highly sought-after
region for uranium exploration.  Two of our properties, Reitenbach and E-12
are in the process of disposal as previously announced, and we continue to
attract interest across the remainder of the portfolio and have

established data rooms for each property to enable us to efficiently engage
with third parties.

Notwithstanding this, we intend to retain a number of the properties and to
conduct proactive exploration across them.  Today we have announced positive
exploration findings from our latest, Summer 2022 phase I work programme
covering three properties, and we will be launching additional ground
exploration in 2023.

In the meantime, the commercialisation work in respect of our uranium
portfolio continues, including both disposal activities and the search for new
uranium focused projects to add into the Power Metal business."

Programme Overview

The exploration fieldwork conducted over the Thibault Lake, Clearwater and
Tait Hill uranium properties consisted of the ground investigation, gamma-ray
spectrometer surveying and rock sampling and over pre-defined target areas.

Both Thibault Lake and Clearwater are considered prospective for both
Beaverlodge style vein/shear hosted uranium and pegmatite hosted uranium. Tait
Hill is considered prospective for both pegmatite hosted uranium and offers a
significant intrusive related target; the 'Mullis Lake Target'.

The results from the exploration programs support these assessments.

Thibault Lake Uranium Property

In the north of Thibault Lake in the vicinity of the West Tazin Lake Target,
strongly mineralised samples of sheared, pitchblende infilling structures,
typical of Beaverlodge-type uranium mineralisation returned results up to 2.4%
and 4.7% U(3)O(8) and represents a significant target for future exploration.
 

Clearwater Uranium Property

Exploration at Clearwater focussed on two targets including:

1) the Toots Lake Target where samples of folded and foliated gneiss,
pegmatites and fracture-controlled veins yielded spectrometer counts per
second ("CPS") readings of up to 1,300 CPS, with corresponding sample assay
results up to 206 ppm U.

2) The A-6 North Target which is in close proximity to an identified
historical mineshaft included a strongly radioactive sample with 'off scale'
(i.e. >9,999 CPS) radioactivity, which returned a sample assay of 1,120 ppm
U(3)O(8).  Additional samples also had anomalous results of between 133 and
322 ppm U(3)O(8).

The results from this exploration programme on Clearwater indicates the
prospectivity of the property for further examples of Beaverlodge-Style
uranium mineralisation.

Tait Hill Uranium Property

In the south of Tait Hill, at the Mullis Lake Target, up to 825 ppm U was
returned from an outcrop of a brecciated pegmatite dyke, this sample, in close
proximity to a mapped granite and folded gneiss that has been interpreted a
significant target. The Mullis Lake Target is considered by the Company to
have geological similarities to the setting of the intrusive related Rössing
Uranium Mine located in Namibia.  As announced on 10 October 2022, additional
land has been staked to secure this target for future work.

Summary

The Company is very pleased with the results obtained from the 2022 Phase I
work programme where only a few days of prospecting was spent on each of the
three Properties. Several additional uranium occurrences have yet to be
prospected by Power Metal, and the data obtained during this and the 2021 work
programmes, as well as historic data compiled by the Company, will be crucial
in allowing Power Metal to unlock additional value from the portfolio during
the 2023 exploration season.

URANIUM PROPERTIES - HOLDING STRUCTURE

Power Metal has a 100%-owned subsidiary Power Metal Resources 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 outlined in Table 1.

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
 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      886         8.86
                                MC00015824      528         5.28
                                MC00016155      1,333       13.33
 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
 Badger Lake                    MC00016253      1,671       16.71
 Total Licence Holding Area                     84,291      842.91km(2)

*E-12 Property conditionally disposed to Teathers Financial PLC as announced 4
November 2022.

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

GLOSSARY

Beaverlodge-style: A group of small, but moderate to high-grade uranium
deposits found to the northwest of the Athabasca Basin. Such deposits are
typically present along faults, fractures or shear zones, generally containing
pitchblende, quartz, calcite, chlorite and sulphide minerals; or within a
brecciated unit containing pitchblende, galena, quartz, calcite, chlorite, and
pyrite.

Pegmatites: Pegmatites are coarse grained intrusive rocks which often carry
economic mineralisation, they commonly form 'sheets' of rock close to larger
intrusions.

U(3)O(8 :) Uranium oxide,  containing 84.8% uranium.

Uraniferous: Containing uranium

 

QUALIFIED 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 Qualified 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 multiple internal exploration programmes completed or
underway, with results awaited.  The status for each of the Company's
priority exploration projects is outlined in the table below.

 Project            Location  Current  Work Completed or Underway                                                  Results Awaited

                              POW %

 Athabasca Uranium  Canada    100%     Preliminary planning for work in Spring/Summer 2023 is ongoing.             None, results reported within this news release.
 Molopo Farms       Botswana  87.71%   Diamond drill programme underway. MLEM surveys planned over additional AEM  Drill programme updates and findings from further MLEM survey work.
                                       targets identified.
 Tati Project       Botswana  100%     RC drilling and sampling of mine dumps complete.                            Mine dumps processing and project commercial and exploration next steps.

( )

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 27.91%                                                    www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 Kavango Resources PLC            Investment - POW 9.85%                                                     www.kavangoresources.com (http://www.kavangoresources.com)

                                  Exploration in Botswana
 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
 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/) .

 Uranium Energy Exploration PLC   Planned IPO - POW on listing estimated 50-55%                              www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)

                                  Uranium exploration in the Athabasca region of Canada

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAEAAEASAFFA