REG - Power Metal Res. - Athabasca – Additional Priority Uranium Targets

Power Metal ResourcesAnnouncement

18/12/2023 07:00

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RNS Number : 0706X  Power Metal Resources PLC  18 December 2023

18 December 2023

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Region - Additional Priority Uranium Targets

Magnetic Surveys Highlight Multiple Priority Targets at Cook Lake and
Clearwater

 

Power Metal Resources PLC (AIM:POW), the London listed exploration company
with a global project portfolio, announces key developments to its currently
100% owned uranium business, covering a combined 1,012 square kilometres
("km(2)") across 17 properties (collectively the "Uranium Portfolio") in and
around the prolific Athabasca Basin in Saskatchewan, Canada. Results from the
Unmanned Aerial Vehicle ("UAV") magnetic geophysics surveys covering the
Clearwater and Cook Lake Projects are reported herein with multiple
high-priority targets for future exploration generated from this modern
surveying technique.

The 2023 uranium focussed exploration programme is the largest undertaken by
the Company and covered 10 properties with a diverse range of modern
exploration technologies applied to identify significant prospective uranium
targets.

The results to date have been encouraging and prior to today's announcement,
significant prospective uranium anomalies have been confirmed at four
properties as detailed below:

 Date of RNS  Property      Exploration Findings                                                         Announcement Link
 N/A          Kernaghan     To be disclosed ("TBD") - electromagnetic geophysics ("EM") survey complete  Results upcoming
 N/A          Durrant Lake  TBD - EM survey complete                                                     Results Upcoming
 N/A          Reitenbach    TBD - airborne magnetic survey complete                                      Results Upcoming
 N/A          E-12          TBD - UAV magnetic geophysics survey complete                                Results Upcoming
 18/12/23     Clearwater    Two new magnetic targets                                                     Herein
 18/12/23     Cook Lake     Two new magnetic targets                                                     Herein
 20/11/23     Soaring Bay   Geochemical results (soil & radon gas) expands on two known targets.         https://www.londonstockexchange.com/news-article/POW/exploration-update-significant-uranium-targets/16215573
                                                                                                         (https://www.londonstockexchange.com/news-article/POW/exploration-update-significant-uranium-targets/16215573)
 20/11/23     Tait Hill     Geochemical results (soil & radon gas) highlights multiple highly            https://www.londonstockexchange.com/news-article/POW/exploration-update-significant-uranium-targets/16215573
                            prospective targets.                                                         (https://www.londonstockexchange.com/news-article/POW/exploration-update-significant-uranium-targets/16215573)
 26/09/23     Badger Lake   Hyperspectral analysis uncovers significant anomaly.                         https://www.londonstockexchange.com/news-article/POW/badger-lake-uranium-project-update/16140722
 08/09/23     Perch River   Significant helium anomaly discovered. Geochemical results pending.          https://www.londonstockexchange.com/news-article/POW/helium-anomaly-discovered-on-perch-river/16115743
                                                                                                         (https://www.londonstockexchange.com/news-article/POW/helium-anomaly-discovered-on-perch-river/16115743)

                                                                                                         Further Results Upcoming

 

Today, the Company announces that exploration conducted at a further two
properties has also identified multiple significant uranium targets, further
details of which are highlighted below.

The 2023 exploration programme continues with additional exploration findings
awaited from Kernaghan, Durrant Lake, Reitenbach and E-12 properties.

 

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

"We believe our 2023 Athabasca exploration programme has already added
considerable value to our extensive Athabasca uranium focused properties.

At a time when the uranium price is entering a major bull market phase, and
interest in junior explorers with attractive projects in the Athabasca Basin
grows, we find ourselves in an enviable position.

We anticipated positive exploration findings, given the work undertaken by our
team to carefully select properties for staking based on extensive historical
exploration data and with a view to the application of the latest geological
techniques. However, the scale of positive results has been, in our opinion,
quite remarkable.

Further exploration results are pending, which will be factored into our
ongoing work to crystallise value for shareholders, demonstrated recently by
the progress we have made with the planned IPO of Teathers Financial Plc (to
be renamed Uranium Energy Exploration) . We will also incorporate this work
into the forward exploration plans for our retained Athabasca portfolio.

These are exciting times for the Company and my personal thanks are due to our
technical team, contractors and consultants for the delivery of this continual
stream of encouraging findings."

HIGHLIGHTS

Clearwater

·    The recent UAV magnetic geophysics survey, which was focussed on the
northeastern portion of the Clearwater project, has identified the presence of
multiple 1(st) and 2(nd) order magnetic lineament structures which are
considered by the Company to be prospective for structurally related vein-type
uranium mineralisation as typified in the Beaverlodge district deposits of
northern Saskatchewan ("Beaverlodge Type" mineralisation).

 

·    The survey significantly expanded the size of a previously identified
target (the 'Toots Lake Target') by approximately 800 metres ("m") as well as
identifying a brand-new target area now termed the 'Nesbitt Fault Target'.

Cook Lake

·    This UAV survey represents the first magnetic survey ever completed
over the Cook Lake project and successfully delineated two priority target
areas which are associated with newly identified magnetic structural
lineaments which are considered by the Company to be coincident with elevated
Uranium (U)-in-lake sediment results, as well as historical radiometric
anomalies.

 

FURTHER INFORMATION

Following receipt of the UAV magnetic survey data, Power Metal technical staff
completed a detailed interpretation of the data, the results of which are
presented below.

Clearwater Project ("Clearwater") - Geology & Previous Exploration

The Clearwater Project is considered by the Company to be prospective for
Beaverlodge Type uranium deposits. Such deposits are typically associated with
faults and shear structures that acted as conduits for uranium bearing
hydrothermal fluids, and which focussed the deposition of the uranium
mineralisation. These faults and the fluids that travelled along them, acted
to alter the mineralogy of host rocks and thus changed the magnetic properties
of the host geology.

Historical reports highlight the major faults across the Clearwater Project,
but their precise location, and the geology associated with them was unknown.
Prior fieldwork on the Clearwater Project by Power Metal Resources identified
up to 1,112 parts per million ("ppm") triuranium octoxide (U(3)O(8)) in rock
samples collected during surface prospecting. Whilst historical mine trials
and workings were known, it was considered that uranium mineralisation was
likely to be buried, and thus may leave minimal surface trace. Therefore, an
understanding of a project's structural geology is essential to determining
precise locations which may be prospective for significant accumulations of
uranium mineralisation.

In September 2023, a UAV magnetic geophysics survey was carried in the
northeastern part of the Clearwater project where the greatest density of
historical uranium occurrences had been found. A total of 270.47 line-km were
flown at Clearwater, on a 50m line spacing, at an elevation of 50m above the
ground by Discovery International Geophysics Inc., of Saskatoon, Saskatchewan.

Clearwater Project - UAV Results

Toots Lake Target

The results of the UAV survey show the presence of multiple
northeast-southwest oriented trending faults and fractures within granitic
units in the northwest of the survey area; in addition, a significant magnetic
low (potentially related to hydrothermal alteration) was identified.
Coincident with this area, uranium mineralisation of up to 0.195% (1950ppm)
U(3)O(8) over 0.7m was intersected during limited historical drilling. This
target has grown in size considerably (at least 800m along strike) with the
identification from the 2023 survey of two prominent northeast-southwest
oriented magnetic lineaments.

Nesbitt Fault Target

In the southeast part of the survey area, multiple northeast-southwest
oriented significant faults were identified which are coincident with a
similar gravity low to the Toots Lake Target. This newly identified target
area has been subject to minimal historical exploration but it is 1km to the
south of the Don Henry Uranium Mine, a historic (1955) trial mine that was
centred on a uranium rich vein with a length of 150 feet ("ft") (45.7m) and a
width of 1 to 3.5ft (0.3 to 1.1m). The limited historical work along the
Nesbitt Fault has identified evidence of hydrothermal alteration, and grab
samples of up to 0.13% U(3)O(8) (1,300ppm) have been recorded from a 1970s
exploration programme.

 

Cook Lake Project - Geology and Rationale

A significant challenge to fieldwork on and around the Cook Lake Project is
the minimal outcrop - with historical exploration giving estimates of around
95% cover. Despite this cover, the property is host to 27 radiometric
anomalies, four electromagnetic conductors and multiple elevated U-in-lake
sediment results. The abundance of possible targets makes selecting priority
areas to complete detailed fieldwork highly challenging.

Cook Lake is considered by Power Metal to be prospective for pegmatite-hosted
uranium as well as intrusive related and basement hosted unconformity related
uranium - the latter of which is often associated with major faults. As a
result, Power Metal elected to complete a UAV magnetic survey across the
project. A total of 119.18 line-km were flown at Cook Lake, on a 100m line
spacing, at an elevation of 50m above the ground by Discovery International
Geophysics Inc. of Saskatoon, Saskatchewan.

The 2023 UAV survey identified two significant new target areas termed the
'Central Target' and the 'Northern Target' which are further detailed below.

Cook Lake Project - UAV Results

Central Target

The Central Target is associated with a strong magnetic low extending over a
strike length of four kilometres which is coincident with eight radiometric
anomalies. This target is also coincident with an east-west trending
electromagnetic ("EM") geophysical conductor further indicating the
possibility of unconformity related uranium mineralisation within this target
area.

Northern Target

The Northern Target is associated with multiple moderate magnetic low features
which are coincident with an airborne radiometric high anomaly (44 counts per
second) and also coincident with a 7km long EM anomaly all coincident with the
highest U-in-lake sediment anomaly on the project - at 25.6ppm U(3)O(8).

The identification of these two targets for future fieldwork, neither of which
have received significant attention in the past, will allow for efficient and
targeted field campaigns on the Cook Lake uranium project going forward.

URANIUM PROPERTIES - HOLDING STRUCTURE

Power Metal has a 100% owned 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.

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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