REG - Power Metal - New Lithium Project – Ontario, Canada

Power Metal ResourcesAnnouncement

25/11/2022 12:30

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RNS Number : 6646H  Power Metal Resources PLC  25 November 2022

25 November 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

New Lithium Project - Ontario, Canada

Power Metal Acquires by Staking 100% Owned North Wind Lithium Project,
Ontario, Canada

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces the acquisition by staking of the 100% owned, North Wind Lithium
Project ("North Wind" or the "Project") located in Ontario, Canada.

The staking was completed through Power Metal's wholly-owned Canadian
subsidiary, Power Metal Resources Canada Inc ("Power Canada").

HIGHLIGHTS:

·    Following a detailed review of several publicly available provincial
government geological databases and reports, Power Metal have staked a total
of 5,788.5-hectares over a 16km long trend of highly anomalous lithium-in-lake
sediment results.

·    The North Wind Lithium Project is considered by the Company to be
prospective for lithium (Li), caesium (Cs), and tantalum (Ta) ("LCT") bearing
pegmatite occurrences.

·    The Project is ideally located less than 25km northwest of the town
of Beardmore, Ontario, and is criss-crossed by multiple access roads which
connect up to the Trans-Canada Highway located less than 40km away.

·    This Project acquisition provides Power Metal Resources with a
significant land holding which is prospective for LCT pegmatite occurrences
within the stable and supportive mining jurisdiction of Ontario, Canada.

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

"The addition of the North Wind Lithium Project is a significant boost for
Power Metal Resources as it provides the Company with a new and potentially
high-impact lithium focused opportunity.

We consider that lithium as a commodity has a particularly bright future with
high demand and constrained supply.  In fact, the significant move higher in
the lithium price has sparked considerable interest in available exploration
properties around the world, and particularly those in safe jurisdictions.

It was a great achievement that through painstaking work, the Power Metal
technical team have been able to identify this new opportunity and secure it
through staking, one of the most cost-effective ways to secure new interests.

Further updates will follow as we advance our knowledge and set out
exploration plans for the North Wind Lithium Project."

ADDITIONAL INFORMATION:

The Project is located within the Onaman-Tashota greenstone belt, where
historical exploration has traditionally focused on precious and base-metals -
however the geology, in a provincial Open File Report (the "Report"),
determined that the belt was prospective for LCT pegmatite occurrences - the
main source of 'hard rock' lithium worldwide. (1)

Other lithium explorers and operators within the region include Imagine
Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium Project (with a reported
historical non-compliant resource of 2,000,000 tonnes at 1.09% Li(2)O),
located 50km to the south of North Wind and Green Technology Metals (ASX: GT1)
with their flagship Seymour Project (which hosts a JORC compliant total
Mineral Resource of 9.9Mt at 1.04% Li(2)O) located approximately 65km to the
northwest.

The Project is centred on a granitic intrusion, cut by numerous mapped dykes.
Highly anomalous lake sediment results (detailed further below) suggest that a
zoned LCT pegmatite system may be present but has never been investigated.
North Wind was identified through detailed research and analysis by the Power
Metal Resources technical team, utilising over 600,000 individual lake
sediment sample points collected by the Ontario Geological Survey (OGS), who
also prepared selected recommendations for exploration which were presented in
the Report (1). Based on this data as well as information contained within the
Report; the area encompassing the North Wind Project was selected for the
strategic acquisition by staking.

The highly prospective and anomalous lake sediment data contained within the
Project includes:

·    Seven instances of >99(th) percentile (with respect to regional
data) Li-in-lake sediment results (ranging from 18.63 to 34.95 ppm Li) with
34.95 ppm representing the 99.95(th) percentile result.

·    Of those seven samples, six are >95(th) percentile for caesium
(1.26 to 2.21 ppm Cs), with three >99(th) percentile (1.94 to 2.21 ppm Cs).

·    The seven samples are also noted to be highly elevated in tantalum
with results ranging between 0.6 and 0.9 ppm Ta.

The presence of anomalous, or highly elevated concentrations of lithium,
caesium and tantalum from samples collected within the same water body suggest
a nearby mineralised source, and therefore the Project represents a highly
prospective target for LCT pegmatite occurrences.  Further desktop analysis
is currently underway, with a comprehensive Phase I Field Sampling Programme
planned in Q1-Q2, 2023.

STAKING PROCESS:

A total of 278 Mining Claim cells were registered by electronic staking
through the Ontario Mining Lands Administration System, covering a total area
of 5,788.5-hectares for a total cost to the Company of CAD $13,900 (circa
£8,500). The mining cells are 100% owned by Power Canada, a wholly owned
subsidiary of Power Metal Resources plc. Each Mining Claim cell covers
20.82-hectares and has an annual exploration spend commitment of CAD$400 from
year two onwards.  The Project therefore has a total exploration spend
commitment of circa £68,000 by the end of year 2 and then annually onwards,
in order to keep all 278 Mining Claim cells in good standing.

 

A map showing the outline of the property, basic geological information and
lake sediment results is below:

 

 

Fig. 1: Plan Map of the North Wind Lithium Project and Surrounding Area.

 

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

 

REFERENCE NOTES;

(1:) Cundari, R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P.,
Pettigrew, T.K., 2019, Ontario Geological Survey Open File Report 6352, Report
of Activities, 2018 Resident Geologist Program.

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%     Ground exploration programme complete at 3 properties.  Preliminary planning     Assay results from samples collected during fieldwork.
                                       for work in Spring/Summer 2023 is ongoing.
 Molopo Farms       Botswana  87.71%   First 2 holes at T1-6 conductor target drilling complete. T1-14 first hole       Drill programme updates and findings from further MLEM survey work.
                                       underway. Further MLEM surveys planned over additional AEM 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% (on expected Admission 25.11.22)                    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

 

 

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