REG - Power Metal Res. - Athabasca Basin, Strategic Uranium Property Staked

Power Metal ResourcesAnnouncement

15/02/2024 07:00

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RNS Number : 2073D  Power Metal Resources PLC  15 February 2024

15 February 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Basin - Strategic Uranium Property Staked

Power Metal Acquires the Richards Lake Uranium Property via Direct Staking

Power Metal Resources PLC (AIM:POW), the London-listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an update concerning its uranium property portfolio focused on the
Athabasca Basin area in Saskatchewan, Canada.

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

"I am very pleased to report this additional staking to our already
significant uranium portfolio focused on the Athabasca Basin area. Competition
remains extremely high for these properties, and I am very grateful to the
technical team for their skilful management of the staking process. With the
addition of Richards Lake, an in-basin property, we have further augmented our
uranium footprint, one that we believe will add considerable value for our
shareholders as corporate and investor interest in the Athabasca Basin area
continues to increase."

HIGHLIGHTS:

§ Newly acquired Richards Lake Uranium Property ("Richards Lake" or the
"Property") was acquired by direct mineral claim staking undertaken by the
Power Metal technical team. The Property was staked during the most recent
Mineral Administration Registry Saskatchewan ("MARS") electronic registry
system claim reopening on 31 January 2024, with the licences granted a few
days later. Additional information on the staking process can be found in the
further information section below.

 

§ Richards Lake project area covers a total 3,109.26 hectares (31.09 km(2))
within the northern edge of the Athabasca Basin. Richards Lake is surrounded
by claims held by uranium-focused companies, including ALX Resources, ATHA
Energy Corp and Skyharbour Resources Ltd (see Figure 1).

 

§ Property has been subject to minimal historical exploration, but previous
operators have noted east-west trending Electromagnetic ("EM") geophysical
conductors which extend through the centre of the Property(1). The Property is
located 14km south of the Fond du Lac Uranium deposit.

 

§ Richards Lake acquisition further supplements the Company's Athabasca
uranium portfolio. With the addition of Richards Lake the portfolio now
consists of eighteen uranium properties, including two conditional disposals,
with a combined total area of 1,043.40 km(2).

FURTHER INFORMATION

Mineral Claim Staking Process

The mineral claim constituting Richards Lake 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 reopenings are highly competitive with many parties
attempting to acquire the newly available land.

The total cost of staking was Canadian $1,865.56. The newly staked licences
come with a two-year term with no minimum spend requirement and which can then
be extended for subsequent years by spending a minimum of Canadian $46,638.90
 per annum.

The Richards Lake Uranium Property

Richards Lake is located within the prolific Athabasca Basin, approximately
14km from the Basin's northern edge. Based on nearby borehole records, the
sandstone-basement unconformity on the Property is expected to be at around
200m depth. The property is crossed by two inferred northwest-southeast
trending faults.

The Property has never been subject to detailed geophysical analysis, being
part of a larger Electromagnetic survey in the mid-2000s. The property has
also not received geochemical sampling or drilling, and thus represents a
greenfield uranium project in a prolific uranium district.

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.

The Power Metal Canada Uranium Property Map is presented in Figure 2, below.

Media

Figure 1: Richards Lake Uranium Property Overview Map

 

Figure 2: Power Metal Canada Uranium Property Map

NOTES

Glossary:

EM Geophysical Conductors: In the Athabasca Basin area, uranium mineralisation
is often associated with graphitic fault conductors within the crystalline
basement. Graphite and faults are more conductive than the surrounding rocks,
and thus offer a proven geophysical target for future exploration.

 

Reference:

(1)Fission Energy Corp, 2008, Report on 2007 Summer Exploration Of The Davy
Lake Property (West, East And North Blocks), Northern Saskatchewan, Report No:
74J13-0010

 

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

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Caroline Rowe/Harry Davies-Ball                                     +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/Caroline Rowe/Harry Davies-Ball

+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 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.

 

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