REG - Power Metal Res. - Acquisition of the Fortin River Project

Power Metal ResourcesAnnouncement

18/02/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250218:nRSR4259Xa&default-theme=true

RNS Number : 4259X  Power Metal Resources PLC  18 February 2025

18 February 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Fermi Exploration: Acquisition of the Fortin River Project

Preliminary Geophysical Results Indicate the Presence of a Significant Uranium
Target.

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to report the
acquisition by mineral claim staking of the Fortin River Uranium Project
("Fortin River " or the "Project"), and preliminary results from a recent
geophysical survey flown over the project. Fortin River is located in northern
Saskatchewan, Canada.

HIGHLIGHTS:

·    Preliminary geophysical data indicates the potential presence of a
1.7 km wide meteor impact crater on the Fortin River Project.  Such impact
craters are targets for unconformity-related uranium mineralisation elsewhere
in Northern Saskatchewan, with over 62Mlb of uranium mined from a major
uranium deposit located within the nearby Carswell Crater.

·    The inferred impact crater was previously unidentified, with no
modern and very limited historical exploration carried out in the area.

·    Fortin River was staked by direct mineral claim staking undertaken by
the Fermi Exploration technical team, through the Mineral Administration
Registry Saskatchewan ("MARS") electronic registry system. Further information
on the staking process can be found in the 'Further Information' section
below.

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

"This is a very exciting development in one of our more recently staked
projects and we very much look forward to investigating it further and
reporting back. Momentum is building across the uranium project set and we are
looking forward to a very exciting few months ahead."

FURTHER INFORMATION

Acquisition and Location of Fortin River

The mineral claims constituting the Fortin River Project (Figure 1) were
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. Claim area 'reopenings' are often highly competitive with many
parties attempting to acquire the newly available land.

The total cost of staking the 3,859 hectares (38.59 km(2)) which make up the
Fortin River Project was CAD $2,220; the newly staked licences come with a
two-year term with no minimum spend requirement, which can then be extended
for subsequent years by minimum work expenditure of Canadian $57,885 per annum
($15/hectare).

The Project is located in northern Saskatchewan, 12km to the south of the
Athabasca Basin, and 35km to the southeast of Fermi Exploration's Badger Lake
Project.

Figure 1 - Location of the Fortin River Project

Survey Details

Following the acquisition of Fortin River, and in conjunction with Fermi
Exploration's surveys elsewhere in the area, Fermi commissioned a combined
Xcite™ magnetic and electromagnetic ("EM") survey to be conducted over the
Project area by Axiom Exploration Group of Saskatoon, Saskatchewan ("Axiom").
Following the initial analysis, Axiom has provided the survey data to Fermi
Exploration, with final data pending final reprocessing.

The survey was designed to test conductive features identified by a prior
operator(1,2). An electromagnetic survey provides information on how
conductive the underlying geology is; such surveys are common in and around
the Athabasca Basin as the exploration efforts focus on conductive zones, such
as graphitic pelites(3). However, electromagnetic surveys can also show
heavily fractured rock.

The preliminary survey results show the presence of a ring-shaped
electromagnetic response with a 1.4 km diameter in the Channel 10 to 25 Slices
(interpreted to be from shallow-medium depths - Figure 2A and Figure 2B). In
Channel 30 to 35 Slices (interpreted to be from medium depths - Figure 2C),
the ring-shaped response is replaced by a central electromagnetic feature,
approximately 1.2km in diameter. Finally, there is no significant
electromagnetic response at the Channel 40 Slices (interpreted to be from
medium-deep depths - Figure 2D). Selected Channel Slices are shown in Figure
2. "Channel Slices" refer to the discrete measurement readings taken at
different frequencies or depths during the survey, higher Channel Slices
represent greater depths.

The magnetic data from the survey (Figure 3) indicates a magnetic low with a
diameter of approx. 1.2 km within the centre of the electromagnetic feature.
The remainder of the survey area appears to correlate closely with the
magnetic properties of the surrounding geology, including the regional fabric.

Based on the survey data, the ringed electromagnetic feature and an
electromagnetic response from the centre of the feature, is considered by the
Fermi Exploration technical team to be consistent with impact craters observed
elsewhere on earth and in Northern Saskatchewan. Analogies include the
Carswell Crater, 140 km northwest of Fortin River, which is 18 km in diameter,
and the Pasfield Lake Crater, which is 10 km wide, and located 200 km to the
northeast of Fortin River. Both the Carswell and Pasfield Lake Craters are
within the Athabasca Basin, associated with mineralisation, and are largely
buried under sandstones.

The concentric electromagnetic high on the Project suggests that the feature
is unlikely to resemble other ring-shaped or concentrically formed geological
structures, such as kimberlite pipes. Additionally, the termination of the EM
anomaly in the Channel 40 slice (Figure 2D) at depth indicates there is no
continuation of conductivity directly beneath the central electromagnetic
feature in Slices 30 to 35 depth. Thus, the feature is not related to a
carbonatite or deeply trending conductive feature where there is a continuity
with the surface structure and depth. Therefore, the feature is interpreted to
have been formed through the impact of a small meteor, which is inferred to
have caused intense disruption and fracturing to a comparatively shallow
depth.

Prior to this survey, no meteor impact crater was known in or around the
Project area. If the interpretations above are correct, this survey marks the
discovery of a new meteor impact crater.

 

 

Figure 2 - Preliminary Electromagnetic Results from the Fortin River Project

Figure 3 - Preliminary Magnetic Results from the Fortin River Project

 

 

 

Implications for Exploration

Meteor craters form when a high-velocity rocky body (the meteorite) impacts
with Earth, and is of sufficient size to shatter the surrounding and
underlying geology. This impact creates a highly porous environment that
enhances fluid flow. A notable example is the Carswell Crater, located 140 km
northwest of the Fortin Lake Project. The former Cluff Lake uranium mine lies
within this crater, where a meteor impact 481.5 ± 0.8 Ma million years ago(4)
played a key role in uranium deposit formation by remobilising and
reprecipitating uranium along newly formed faults and fractures(5,6). Over its
22-year lifespan, the Cluff Lake mine produced more than 62 million pounds of
uranium(7).

The Pasfield Lake Crater is subject to ongoing uranium exploration by Terra 92
Uranium (ASX:T92). Historical exploration of the feature has indicated
anomalous helium > 230 times greater than the background, intense
alteration overlying the crater and surface uranium anomalies(8).

The Fortin River Project is located 12.5 km south of the current extent of the
Athabasca Basin; and thus does not have the Athabasca Sandstone cover present
over the Carswell or Pasfield Lake Craters. However, the Fortin River Project,
remains prospective for unconformity-related uranium deposits, as the basin is
understood to have extended significantly beyond its current boundaries, and
multiple unconformity-related discoveries (Arrow, Triple R(9), ACKIO(10)) have
been made outside the basin in recent years, within similar geology and
mineralisation styles to major deposits inside the basin.

As such, the extension of the Athabasca Basin outside of its current extent
suggests the potential for basement-hosted unconformity uranium deposits
within the Fortin River Project area. Additionally, the presence of the impact
crater greatly improves the prospectivity of the Project, as the impact crater
may have played a role in remobilising nearby mineralisation, similar to the
processes that formed the Cluff Lake deposit.

 

Historical Exploration of the Project

Fortin River has experienced minimal historical and no recent exploration;

Initial geophysical survey work(11) on the north of the Project indicated a
magnetic low in the vicinity of the inferred impact crater and the contrasting
relative magnetic highs; at that time, the area of the Fortin River Project
was not considered of interest.

In 1979, the Project area was staked and surveyed by Denison Mines, who
completed an airborne electromagnetic survey on southeast-northwest spaced
flying lines, and identified multiple closely spaced conductors in the centre
of the impact crater and inferred the conductive responses they identified to
result from folding or faulting(1). A further electromagnetic survey, also
carried out by Denison Mines supplemented this 1980 survey(2), this time
flying north-south trending survey lines. The survey found an additional
conductive material, which was attributed to conductive sediments at the base
of the lake.

Since 1980, no work has been recorded from Fortin Lake.

Proposed Exploration and Next Steps

Upon receipt of the finalised data and report from Axiom Exploration Ltd,
geophysical inversions and further analysis will be carried out to determine
the location of fault structures, which may be amicable for uranium
mineralisation.

Following this initial target generation, field sampling and potentially
further geophysical surveys may be planned for the summer 2025 season to
understand the prospectivity of the project better.

 

GLOSSARY

Carbonatite - A type of intrusive igneous rock that is largely composed of
carbonate minerals, such as calcite or dolomite. In mining, carbonatites are
important because they can host rare mineral deposits, including rare earth
elements, fluorite, and sometimes phosphate, which are economically
significant in mining.

Channels (electromagnetic survey data) - In the context of electromagnetic
surveys, "channels" refer to the discrete measurement readings taken at
different frequencies or depths during the survey. These channels represent
different parts of the electromagnetic signal that can provide insights into
the conductivity of subsurface materials, aiding in the identification of
mineral deposits.

Electromagnetic - Refers to the use of electromagnetic fields to study
subsurface features. In mining exploration, electromagnetic (EM) methods are
commonly used to detect conductive materials (like sulphide ores) by measuring
how the subsurface responds to electromagnetic waves. This can help identify
mineralisation, such as base metals or uranium.

Geophysical Inversions - A technique used to interpret geophysical data by
creating models of the subsurface based on measurements taken from the surface
(such as magnetic, electromagnetic, or seismic data). In mining and
exploration, geophysical inversions allow geologists to better understand the
3D distribution of mineral deposits, faults, and other geological features,
aiding in target identification for drilling or mining operations.

Graphic Pelites - Fine-grained sedimentary rocks that are rich in clay
minerals. In the context of mining and exploration, graphic pelites are often
associated with sedimentary basins and can be important for understanding the
geological history of an area, as well as being potential host rocks for
certain mineral deposits, particularly uranium in unconformity-related
deposits.

Kimberlite Pipes - Vertical, carrot-shaped geological formations made of
volcanic rocks, which are typically associated with diamond deposits. In
exploration, kimberlite pipes are the primary targets for diamond mining, as
they often carry diamonds from deep within the Earth's mantle to the surface.
Identifying these pipes is key to diamond exploration.

Magnetic - Pertains to the use of magnetic fields to detect variations in
subsurface rocks, typically measured in magnetic surveys. In exploration,
magnetic surveys are commonly used to locate iron-rich minerals, such as
magnetite, and to map geological structures like faults or volcanic intrusions
that could host valuable deposits, such as gold or copper

 

 

 

REFERENCES

(1) Denison Mines Limited 1979, Kelic Montgrand Lakes Project, Exploration
Program, 74F08-0014

(2) Denison Mines Limited, 1980, Airborne Electromagnetic Survey, Kelic
Montgrand Area, File No: 22033, 74F08-0015

(3) Powell, B., Wood, G., Bzdel, L. Milkereit, B., 2007. Advances in
geophysical exploration for uranium deposits in the Athabasca Basin. In
Proceedings of Exploration (Vol. 7, pp. 771-790).

(4) Alwmark,c., Bleeker, W., LeCheminant, A., Page, L., Scherstén, A., 2017
An Early Ordovician (40)Ar-(39)Ar age for the ∼50 km Carswell impact
structure, Canada. GSA Bulletin; 129 (11-12): 1442-1449. doi:
https://doi.org/10.1130/B31666.1 (https://doi.org/10.1130/B31666.1)

(5) Baudemont D., Fedorowich, J., 1996, Structural control of uranium
mineralization at the Dominique-Peter Deposit, Saskatchewan, Canada, Economic
Geology.

(6) Leventhal J S, Grauch R I, Threlkeld, Lichte F E  1987 - Unusual organic
matter associated with Uranium from the Claude deposit, Cluff Lake, Canada:
in    Econ. Geol.   v82 pp 1169-1176

(7) Orano, 2020, Cluff lake Factsheet;
https://cdn.orano.group/canada/docs/librariesprovider13/canada/resources/factsheets/cluff-lake-factsheet-2020.pdf?sfvrsn=e9dd1034_9
(https://cdn.orano.group/canada/docs/librariesprovider13/canada/resources/factsheets/cluff-lake-factsheet-2020.pdf?sfvrsn=e9dd1034_9)

(8) https://t92.com.au/projects-v1/pasfield-lake/
(https://t92.com.au/projects-v1/pasfield-lake/)

(9) Tschirhart, V., Potter, E. G., Powell, J. W., Roots, E. A., Craven, J. A.,
2022, Deep Geological Controls on Formation of the Highest‐Grade Uranium
Deposits in the World: Magnetotelluric Imaging of Unconformity‐Related
Systems From the Athabasca Basin, Canada, Geophysical Research Letters,
10.1029/2022GL098208, 49, 15

(10)
https://baselode.com/news/baselode-reports-high-grade-uranium-assays-on-its-ackio-prospect/
(https://baselode.com/news/baselode-reports-high-grade-uranium-assays-on-its-ackio-prospect/)

(11) Agarwal, R., G., 1970reprot on the Electromagnetic survey Permit No 4.
Lac La Ronge Area, Northern Saskatchewan, Northwood Mining Ltd. 74F01-0008

 

 

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, 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/Jen Clarke                                                         +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)

 Tim Blythe/Megan Ray                                                           +44 (0) 20 7138 3204

 

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

 

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  ACQBCGDDXBBDGUR