REG - Power Metal - Key Uranium Exploration and Corporate Developments

Power Metal ResourcesAnnouncement

21/06/2023 07:00

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RNS Number : 3535D  Power Metal Resources PLC  21 June 2023

21 June 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Key Uranium Exploration and Corporate Developments

 

Power Metal Resources PLC (LON:POW) the London listed exploration company with
a global project portfolio, announces key developments to its uranium ("U")
business, which covers a combined 1,005km(2) across 17 properties
(collectively the "Uranium Portfolio") in and around the prolific Athabasca
Basin in Saskatchewan, Canada.

Highlights

·    2023 exploration campaign planning complete (as outlined below),
representing the largest ever uranium focussed exploration programme carried
out by Power Metal across its Uranium Portfolio, which includes work on at
least 10 of the 17 properties.

·    Acquisition of the Perch River Uranium project ("Perch River"), which
covers an area of 9.41km(2) and is entirely within the prolific Athabasca
Basin.

·    Planned listing of Uranium Energy Exploration ("UEE") to be
expedited.

 

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:

"I am pleased to be able to make this important announcement to demonstrate
the value we expect to deliver to shareholders through the exploration of our
uranium portfolio. This will be the Company's largest uranium focussed
exploration programme to date, coming at a time when investor attention is
increasingly focussed on the commodity and its upside potential as a clean
energy alternative fuel.

The purpose of the exploration programme is to carry out a variety of
geophysical and ground-based surveys in order to begin proving up drill-ready
targets. The results are expected to come in the second and early third
quarter of this year, with the intention of having a well-defined picture of
the opportunity by Q4 of this year.

The recent addition of the Perch River Project was a strategic move,
increasing the Company's overall footprint in and around the Athabasca Basin,
and enhancing what we consider to be a globally significant package of uranium
licences.

I am also pleased to report that the listing of Uranium Energy Exploration,
initially reported in September 2022 into which Power Metal has conditionally
disposed the Reitenbach and E-12 properties,(1,2) will now be expedited in
order to meet investor demand for pure-play exposure to uranium exploration in
this region."

2023 EXPLORATION CAMPAIGN

Power Metal's technical team has designed the 2023 exploration campaign which
will be carried out by Power Metal in conjunction with various Canada-based
geophysical and field contractors.

This programme represents the largest field campaign undertaken by the Company
to date on its northern Saskatchewan uranium focussed properties, and
represents an important commitment to the Company's uranium business going
forward.

Further 2023 campaign-specific details are outlined below. The various
programmes are planned to be carried out between June and September.

Tait Hill

Tait Hill is located 30km north of the Athabasca Basin and is considered by
the Company to be highly prospective for intrusive- and pegmatite-hosted
uranium mineralisation. The Mullis Lake Target discovered by Power Metal
during the 2022 exploration campaign, and detailed in a RNS announced on 2
December 2022(3), has strong geological similarities to the Rössing uranium
deposit located in Namibia. Exploration over Tait Hill conducted by
Saskatchewan Mining Development Corporation (SMDC) in 1977 returned
exceedingly high soil results (up to 13,200 ppm or 1.3% U) and lake sediment
results (99.8(th) percentile) from the centre of the project. This central
area has received very minimal follow up exploration.

Work completed by Power Metal in 2021 and 2022 returned up to 825 parts per
million ("ppm") U from a brecciated pegmatite dyke at the Mullis Lake Target
and up to 3,986 ppm U from a pegmatite in the north of the project.

In order to advance the project during the 2023 exploration campaign, Power
Metal plans to complete follow up geochemical (soil) sampling programme and
detailed prospecting over the central part of the project as well as at the
Mullis Lake target, with the ultimate goal of proving up drill ready targets.

Badger Lake

Located along the Athabasca Basin's southern edge, the 16.71km(2) Badger Lake
project is considered by the Company to be prospective for sandstone and
basement-hosted unconformity-related uranium mineralisation.

In 2000 a low-resolution electromagnetic ("EM") geophysics survey flown by a
previous claim holder, highlighted a significant conductor within the centre
of the project. As a result, Power Metal plans to acquire higher-resolution
modern data via a drone EM (unmanned aerial vehicle or UAV) survey to enable
effective analysis and definition of drill targets for future programmes.

Durrant Lake

Durrant Lake is located within the eastern part of the Athabasca Basin
approximately 37km from the basin edge. The project is surrounded by major
uranium explorers and operators including Cameco Corporation, Denison Mines
Corp and ISO Energy Limited.

A historical survey completed over Durrant Lake by previous operators
identified multiple occurrences of elevated helium ("He")-in-lake water
results, which may offer a secondary proxy to potential uranium mineralisation
with helium - a daughter product of the radioactive decay of uranium.

Geophysical work carried out between 1987 and 2000 identified multiple
northeast trending Very Low Frequency ("VLF") conductors, which are often
inferred to represent faults and/or shear structures. In addition, EM
anomalies in the north and south of the project are coincident with elevated
He-in-lake results representing compelling targets for unconformity-related
uranium mineralisation.

The various geophysical anomalies were identified several decades ago and, as
a result, Power Metal plans to conduct a modern helicopter-borne passive EM
survey over the entirety of the project, to define drill targets for future
work programmes.

Kerneghan

Kerneghan is located in the east of the Athabasca Basin, around 14km from the
basin edge. The project is surrounded by major operators including ISO Energy
Limited, Standard Uranium Ltd and Orano SA.

To date, no detailed geophysical data has been collected over Kerneghan, with
the only data currently available derived from the Saskatchewan Geological
Survey. Therefore, acquiring high-quality geophysical data will allow Power to
determine and define drill targets for future work programmes.

As with Durrant Lake, the Company plans to complete a helicopter borne passive
EM survey at Kerneghan.

Soaring Bay

Located 125km southwest of the Athabasca Basin, Soaring Bay is centred around
multiple Saskatchewan Mineral Deposit Index ("SMDI") points as well as several
strongly elevated U-in-lake sediment results collected as part of a government
conducted survey.

Historical work completed over Soaring Bay identified anomalous Radon(222)
isotope results located along a prominent 700 m-long structural lineament,
with multiple coincident U-in-lake sediment anomalies as well as sustained
radiometric anomalies along the fault. In the southeast of the project, a
radioactive pegmatite was identified, but never assayed.

Power Metal intends to undertake a soil/prospecting programme to further test
the exciting previously identified Radon(222) anomaly to help determine the
nature and prospectivity of this significant feature. Part of this programme
will also include prospecting of the radioactive pegmatite to the southeast of
the project.

E-12(1)

E-12 is located 12km southeast of the Athabasca Basin and is intersected by
Provincial Highway 914, providing ideal exploration access. We believe the
project's proximity to the edge of the Athabasca Basin makes it prospective
for unconformity-related uranium mineralisation.

Historical data over the project collated by Power Metal has highlighted the
presence of multiple uraniferous boulder trains, and superficial sediments
(soils and gravels) with elevated radioactivity. However, there is a very
limited understanding of the sub-surface geology and precise location of EM
conductors - which are key targets when exploring for unconformity-related
uranium deposits.

As a result, Power Metal is in the process of commissioning a drone-based EM
survey across the project, with a planned flight line spacing of 100m flown in
a northwest-southeast orientation. A coarse government-flown airborne EM
survey identified multiple low-resolution conductors across the project, and
the planned high-resolution survey will allow Power Metal to map the precise
location, extent and character of the known EM conductors within E-12,
allowing for targeted follow-up exploration.

Work undertaken at E-12 will be paid for by Power Metal and provided as a loan
to UEE recoverable on the successful listing of UEE within the London markets.

Reitenbach(2)

Reitenbach is located approximately 130km east of the Athabasca Basin and is
considered by the Company to be highly prospective for intrusive and
pegmatite-hosted uranium mineralisation. The project is centred on multiple
underexplored geophysical and geochemical anomalies.

The project hosts exceedingly high U-in-lake sediment results up to 508 ppm U
- which represents the 99.99(th) percentile U-in-lake sediments from the
entire Geological Survey of Canada Saskatchewan lake sediment database. Due to
extension cover, previous explorers were unable to find a mineralised outcrop
source which could sufficiently explain the exceptionally high U-in-lake
sediment results found over a large area within Reitenbach.

The vast majority of the Reitenbach has been subject to no modern geophysical
surveys and as a result, Power Metal has commissioned Dias Geophysical Limited
("DIAS") to complete a helicopter-borne high-resolution 'QMAGT' full tensor
magnetic gradiometry and radiometric survey over the project with ~1,000
line-km planned. The survey is expected to commence by the end of June 2023.

In addition, DIAS will also complete the processing, analysis and
interpretations for the data acquired. As the project is mostly covered by
thin vegetation the combined magnetic and radiometric results will allow for
the detailed mapping of important geological and structural features with the
ultimate goal of discovering a considerable mineralised bedrock source.

Work undertaken at Reitenbach will be paid for by Power Metal and provided as
a loan to UEE recoverable on the successful listing of UEE within the London
markets.

Cook Lake

Cook Lake is located 85km southeast of the Athabasca Basin and is considered
by the Company to be prospective for basement-hosted unconformity-related
uranium, alongside intrusion- and pegmatite-hosted uranium mineralisation. At
Cook Lake multiple uranium-enriched boulder trains have been identified as
well as several radiometric and elevated U-in-lake sediment anomalies.

The most recent geophysical survey completed over Cook Lake was in the late
1970s which identified several EM conductors. Updating these results with
modern survey methods will allow for improved identification and resolution of
these EM conductors.

As a result, Power Metal is in the process of commissioning a drone-based EM
survey to be flown across the project with a planned flight line spacing of
150-200m flown in a northwest-southeast direction. This survey will provide
valuable inputs to allow Power Metal to plan further work on the project.

Clearwater

Power Metal has completed two field programmes on Clearwater, overseeing the
collection of multiple samples with 'off scale' (i.e. >9,999 counts per
second or "CPS") radioactivity, which returned results of up to 1,120 ppm
tri-uranium oxtoxide ("U(3)O(8)")("). Additionally, the project hosts six SMDI
occurrences and multiple anomalous U-in-lake sediment results, all of which
highlight Clearwater's prospectivity.

The main exploration target at Clearwater is for Beaverlodge-style uranium
mineralisation, which is associated with faults and fractures therefore to
best refine targeting on Clearwater a strong understanding of the structural
geology of the project is vital. To date, no modern geophysics has flown and
Power Metal is in the process of commissioning a drone-based EM survey. This
modern geophysical survey will allow for detailed mapping of prospective fault
zones ready for further detailed field investigation in the future.

ACQUISITION OF PERCH RIVER

Mineral Claim Staking Process of Perch River

The mineral claims constituting the Perch River Uranium Project (Figure 1) 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 is reopened to third-party staking at a set time
each month. Select reopening's are often highly competitive with many parties
attempting to acquire the newly available land.

The total cost of the 39.41 km(2) staking was Canadian $2,364.60. The newly
staked licences come with a two-year term with no minimum spend requirement,
which can then be extended for subsequent years by spending a minimum of
Canadian $59,115 per annum.

Perch River Geology

Perch River is located less than 10km from the northern Athabasca basin edge
and is therefore Considered by the Company to be prospective for both
basement- and sandstone-hosted unconformity-related uranium deposits.

The project is covered by Athabasca Sandstone to an estimated depth of between
50 and 200m which is in contact with crystalline basement of the Mudjatik
Domain. A major fault zone, the 'Font du Lac', crosses the project in a
north-south orientation and 'splays' (breaks and rejoins) in the centre of the
project. Such structures have been interpreted as providing fluid pathways to
enable the generation of unconformity related uranium deposits elsewhere in
the Athabasca Basin, and therefore represents a significant target at Perch
River.

At the apex of the fault splay, and to the northeast of the fault, multiple
gravity lows, which may be indicating an area of hydrothermal alteration are
present, further highlighting the prospectivity for unconformity-related
uranium mineralisation. One such low, in the south of the project, has been
identified to be 'up ice' (upstream of the ice-age glacial flow direction) and
therefore a potential source of elevated U-in-lake sediments identified from a
work programme completed in the 1970s.

More recent work (2011-2021) conducted by Purepoint Uranium Group Inc
highlighted a cluster of anomalous U-in soil geochemical results (up to 33 ppm
U) located in the central part of the project, coincident with multiple known
structural features. The elevated U-in soil results are associated with
elevated vanadium, lead, and cobalt results - elements which are known to be
associated with unconformity-related uranium mineralisation.

In addition, the elevated soil results are in close proximity (<400 m) to
coincident elevated Radon(222) isotope and Thorium-in-soil results - both of
which are daughter products of the decay of uranium and are important tracers
in and around the Athabasca Basin.

The secondary gravity low to the north of the project remains untested, with
minimal exploration occurring elsewhere.

Figure 1: Perch River Uranium Project Overview Map.

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., Saskatchewan Holdings*

 

 Project                        Licence ID      Area        Area

                                                (Hectare)   (km(2))
 Clearwater Uranium Project     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 Project      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 Project  MC00015077      2,206       22.06
                                MC00015659      2,195       21.95
                                AC00018709      1,982       19.82
 Soaring Bay Uranium Project    MC00015080      1,255       12.55
                                MC00015155      3,375       33.75
                                MC00015874      748         7.48
                                MC00015875      2,529       25.29
 Cook Lake Uranium Project      MC00015212      984         9.84
 E-12 Uranium Project(1)        MC00015213      1,323       13.23
 Reitenbach Uranium Project(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

 Perch River                    MC00017294      3,941       39.41
 Total Licence Holding Area                     100,514     1,005.14km(2)

 

NOTES AND REFERENCES

1:                    The E-12 Property, currently included
as one of the 17 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.

(https://www.londonstockexchange.com/news-article/POW/disposal-of-e-12-uranium-property-canada/15703304
(https://www.londonstockexchange.com/news-article/POW/disposal-of-e-12-uranium-property-canada/15703304)
)

2:                    The Reitenbach Property, currently
included as one of the 17 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.

(https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269
(https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269)
)

3:
(https://www.londonstockexchange.com/news-article/POW/athabasca-uranium-exploration-update/15742013
(https://www.londonstockexchange.com/news-article/POW/athabasca-uranium-exploration-update/15742013)
)

 

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
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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

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

 

 BlytheRay (PR Advisors)                            +44 (0) 20 7138 3204
 Tim Blythe
 Megan Ray

 

 

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.

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 grow the
Company, or may be returned to shareholders through share buy backs, dividends
or in-specie distributions of assets.

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