REG - Power Metal - Reitenbach Uranium Property - Athabasca Basin

Power Metal ResourcesAnnouncement

08/02/2022 07:00

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RNS Number : 9522A  Power Metal Resources PLC  08 February 2022

8 February 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Reitenbach Uranium Property - Athabasca Basin

Historic Data Compilation over the Reitenbach Uranium Property Delivers
Exciting Results

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update on its Reitenbach Uranium Property ("Reitenbach" or the
"Property"), which is part of the larger uranium portfolio which includes
seven 100% owned interests (Table 1) covering an area of 417.24 km(2) (41,724
hectares), surrounding the Athabasca Basin in northern Saskatchewan, Canada.

A map highlighting some of the highlight results from the historic data
compilation completed on the Reitenbach Uranium Property can be found at the
following link:

https://www.powermetalresources.com/reitenbach-property-overview/
(https://www.powermetalresources.com/reitenbach-property-overview/)

Reitenbach Property Overview

-      The Reitenbach Property covers a total of 14,646-hectares (c.
146km(2)) located in northeastern Saskatchewan, Canada. Saskatchewan ranked
third in the most recent 2020 Fraser Institute Investment Attractiveness Index
rankings of global mining jurisdictions.(1)

 

-      The Property is centered around seven Saskatchewan Mineral Deposit
Index ("SMDI") uranium occurrences, and covers a highly anomlous lake-sediment
sample of 130 parts per million ("ppm") Uranium ("U"), the 11(th) highest
(99.9th percentile) lake uranium assay in the Geological Survey of
Saskatchewan lake sediment analysis database ("GSSSD") of 13,195 individual
lake sediment samples from the Precambrian Shield area of Saskatchewan. An
additional licence was staked recently in order to better cover this highly
prospective area (see linked Figure 1)(2)

 

-      Reitenbach is in close proximity, or has continguous claim borders
with several publically listed uranium companies including Forum Energy Metals
Corp., Cameco Corp., and Appia Energy Corp.

 

-      The Property is prospective for both porphyry-style (incl.
thorium-molybdenum-rare-earth element) and metasedimentary-hosted uranium
mineralisation.

 

-      The Company is reviewing multiple strategic outcomes for the
Property, including the potential outright sale of the asset. Further updates
in respect to the Property are expected in the coming weeks.

 

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

"Power Metal has seen considerable interest in the Company's uranium
properties surrounding the Athabasca basin, and we see significant value
creation potential through the disposal of certain interests either through
direct sale to third parties or the creation of new listings in the London
markets.

We are therefore accelerating our property review work to assemble in-depth
datarooms for each property.  The review of historical data and exploration
results of the Tait Hill property were announced previously and Reitenbach
Property is covered in today's announcement.

Recognising the importance of uranium to our business, we have recruited an
additional uranium focused team member who is working with us now to advance
our uranium focused interests.

Further updates will follow as material developments occur."

FURTHER TECHNICAL INFORMATION

Power Metal recently completed an in-depth historical data compilation across
its entire uranium Portfolio surrounding the prolific Athabasca Basin,
Saskatchewan, and now possesses a robust fully-digitised database covering all
historic work programmes completed across the various Properties, including
the Reitenbach Uranium Property.

A total of 10 historic reports were digitised from work programmes covering at
least some part of the Property. These date back to 1969, with only one work
programme (2007 airborne survey) completed since 1979. As a result, the
Property has seen minimal recent exploration.

Reitenbach Compilation Highlights

-      Multiple historic operators noted that the Property has the
potential to host either low-grade, large-tonnage porphyry-style uranium
mineralistion, or higher-grade, lower-tonnage sediment-hosted mineralisation
within unexposed metasedimentary rocks. Two reports highlighted the
similarities between Reitenbach and the Rossing Uranium mine ("Rossing") in
Namibia, owned by the China National Uranium Corporation Limited, known as the
world's longest running open-pit uranium mine.(3,4,5) The average grade mined
from Rossing in 2020 was 335ppm U.(3)

 

-      The Reitenbach Property is noted as having less than 1% of exposed
outcrop, making traditional ground-based exploration difficult. As a result,
historic operators have relied heavily on airborne geophysics and boulder
sampling, a technique typically used in northern Saskatchewan where
mineralised boulders are mapped in order to vector towards a covered outcrop
source of uranium mineralisation. Lake sediment results were originally used
as a first pass method in order to determine areas with relative uranium
enrichment to be targeted for further exploration.

 

-      Several high-priority radiometric anomalies were identified on
Reitenbach from multiple historic airborne surveys. The majority have now been
digitised and can be found on the map available through the link above.

 

-      Historic results highlighted a NE-SW trending boulder train
located in the southern part of the Property, with results up to 5,720ppm U
(incl. a result of 2,520ppm U). This area is coincident with both:

 

1)    the regionally important Needle Falls Shear Zone ("NFSZ"), it is
noted that 200km to the SW along the NFSZ is the Duddridge Lake uranium
deposit; and

2)    the 130ppm U GSSSD result, the 11(th) highest lake sample uranium
result in the entire province. Further work is required in this area to
determine the bedrock source of this uranium mineralisation.(4) An additional
licence was staked recently in order to better cover this highly prospective
area (see linked Figure 1).

 

-      In the northern part of the Property, at least 8 historic boulder
samples grading >250ppm U were digitised, including highlight results up to
2,320ppm and 2,883ppm U. Notably, a 1977 lake sediment sampling programme
which oversaw the collection 3,042 total lake sediment samples covering an
area of approximately 2,800km(2) (including the Reitenbach Property area),
returned two extremely anomalous results of 508ppm, and 452ppm U. Both of
these results are located within Reitenbach, and they represent the highest
two results from the entire survey.(5)

The Company's interpretation work continues to uncover exciting findings
within the historical dataset from our Athabasca uranium portfolio in
Saskatchewan, Canada.

With the fully digitised historical dataset now held by Power Metal, we can
continue to add value to the uranium portfolio through our interpretation
work.  We anticipate additional updates to the market  highlighting our
findings in the coming weeks.

Uranium Property 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 Saskatchewan uranium portfolio.

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

 

 Project                        Licence ID  Area - Hectare
 Clearwater Uranium Property    MC00015079  1,110
                                MC00015083  563
                                MC00015082  3,191
                                MC00015151  760
                                MC00015646  761
                                MC00015658  1,541
 Tait Hill Uranium Property     MC00015078  1,576
                                MC00015081  968
                                MC00015153  1,530
                                MC00015152  1,886
                                MC00015647  725
                                MC00015648  1129
 Thibaut Lake Uranium Property  MC00015077  2,206
                                MC00015659  2,195
 Soaring Bay Uranium Property   MC00015080  1,255
                                MC00015155  3,375
 Cook Lake Uranium Property     MC00015212  984
 E-12 Uranium Property          MC00015213  1,323
 Reitenbach Uranium Property    MC00015214  2,135
                                MC00015474  1,235
                                MC00015655  4,570
                                MC00015656  5,322
                                MC00015657  856
                                AC00017691  528
 Total Land Holdings                        41,724

 

*Bold text refers to ground acquired since the most recent acquisition and
expansions announced by the Company on 10 November 2021

 

Reference Notes:

1:
https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf

2:
https://geohub.saskatchewan.ca/datasets/gsc-lake-sedimentanalyses/explore?location=57.252950%2C-105.528550%2C6.69

3:             https://www.rossing.com/shareholding.html

4:             Robert J., Munday (Sasktchewan Department of Natural
Resources): Ground Evaluation of Airborne Radiometric Anomalies in Crown
Reserve 619, Northern Saskatchewan, During Summer 1975 (64L-0018)

5:             David A. Harrigan (Saskatchewan Mining Development
Corporation): Final Report - 1977 Field Season Wollaston East Project - SMDC
Permits 7-10, CBS 4907 NTS 64 L-1, 2, 7, 8 (64L-0012)

 

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 (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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 Project                     Location   POW %            Work Completed or Underway                                                    Results Awaited

 Alamo Gold Project          USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                      Field and assay results from on-site work programme.
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 Ditau Project               Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                         accelerated drilling targeting rare-earth elements and base metals

 Kalahari Copper Belt        Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling
                                                         exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                         licence areas
 Molopo Farms                Botswana   53%(A)           Kavango Option to acquire an interest in local project holding company.       Results from various work activities underway as part of the Kavango Option
                                                         Option fee payable through defined work programme
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Haneti Project              Tanzania   35%              Diamond drill programme underway                                              Results from field programme including drill programme underway
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across +1500km(2) of granted exploration licences         Results from field programme including drill programme underway

 Wallal Gold/Copper Project  Australia  83.33%(B)        Passive seismic and 2D seismic processing work programme completed.           Results awaited

                                                         Ground reconnaissance work underway.

(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project

(B) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Ltd shares to URE vendors

 

 

 

 

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