REG - Power Metal Res. - Badger Lake Uranium Project Update

Power Metal ResourcesAnnouncement

26/09/2023 14:30

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RNS Number : 7203N  Power Metal Resources PLC  26 September 2023

26 September 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Badger Lake Uranium Project Update

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and
development company, is pleased to announce the escalation of a high priority
 uranium target based on a remote sensing study commissioned for the 100%
owned Badger Lake Uranium Project ("Badger Lake" or the "Project") located
within the Athabasca Basin, Saskatchewan, Canada.

Highlights

·    Hyperspectral satellite data analysis ("Hyperspectral Analysis")
study has identified distinct similarities between Badger Lake and the Arrow
Deposit  (with a Total Measured and Indicated Resource of 256.7 Mlb U(3)O(8)
(1)) owned and operated by Nexgen Energy Ltd., which is located circa 30km
northwest of the Project.

 

·    The Hyperspectral Analysis has focused on establishing spectral
signatures associated with alteration, gas emissions and apparent electric
flux properties over the known basement-hosted, vein type uranium deposits of
Arrow and Arrow South ("Arrow") in order to generate potential targets for
exploration at nearby Badger Lake.

 

·    Utilising European Space Agency Sentinel-2 visible to near-infrared
("VNIR") and short-wave infrared ("SWIR") satellite datasets and Japanese
ALOS-1 Synthetic Aperture Radar ("SAR") satellite data a direct comparison
with Arrow has generated 30 spectral targets for investigation at Badger Lake.

 

·    At the Arrow deposit, resistivity geophysics anomalies associated
with the mineralisation coincide with distinct Dielectric Constant ("DC")
readings estimated from the SAR backscatter data. Similar level DC readings
show a distinct 300m wide DC anomaly for investigation in the east of Badger
Lake.

 

·    Significantly, the Badger Lake DC anomaly is also coincident with the
distinct airborne electromagnetic ("EM") geophysics anomaly (named EMO8) and
associated northeast-southwest trending EM conductor identified in a
historical survey commissioned by COGEMA Resources Inc in 2002; and in
proximity to anomalous Uranium-in-lake sediment results and a Very Low
Frequency ("VLF") Geophysical survey carried out in 1978.(2,3,4)

 

·    As a result of the above, the Company is looking to expedite the
planned high-resolution electromagnetic UAV survey over Badger Lake.

 

 

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

"It is thanks to the experience and skills of our in-house technical team and
their commissioning of hyperspectral analysis at Badger Lake that has led to
the discovery of yet another extremely attractive exploration target within
our Saskatchewan uranium portfolio - further highlighting the quality of our
100% owned uranium assets.

"This is a significant milestone for Power Metal and follows closely on from
the recently announced discovery of a significant helium anomaly at Perch
River.

"Shareholders are aware that we have work underway on ten of our seventeen
properties within and surrounding the Athabasca Basin in Saskatchewan,
Canada.  Further updates across our portfolio are expected in the near term.

"Given the rising price of the uranium commodity and the increasing interest
in uranium exploration juniors, we are particularly excited about our progress
and are very much looking forward to the release of additional findings, when
available, from our active uranium exploration work programmes.

 

"These findings could not come at a better time for shareholders and serve to
highlight the huge potential value inherent in our uranium portfolio and in
the Power Metal business model more generally."

 

Comparisons Between Arrow and Badger Lake

Power Metal commissioned Dr Neil Pendock, a highly respected remote sensing
consultant, to undertake the hyperspectral data compilation and comparative
processing study over Badger Lake and the Arrow deposits.

 

Conductivity anomalies present strong targets for uranium exploration within
the Athabasca Basin as they can represent graphitic lithologies, which are
known to act as reductants for uranium mineralisation, and thus host uranium
mineralisation.

 

As shown on Figure 1, there are strong similarities between the SAR data
Dielectric Constant estimates at Arrow and those in the east of Badger Lake .
The Dielectric Constant is the measure of relative permittivity of a material,
it is the permittivity of that material expressed as a ratio with the electric
permittivity of a vacuum.

 

Badger Lake also has a coincident magnetic anomaly and geophysical conductor
in the vicinity of the identified anomalous Dielectric Constant levels,
further enhancing it's prospectivity.

 

A historical data compilation was completed over Badger Lake with the results
announced to the market on 5 October 2022(5). Importantly, many of the targets
generated by that work are strongly coincident with the DC anomaly now
confirmed further enhancing the prospectivity of this target area including:

·    The survey flown by FUGRO Airborne Surveys in 2002 on behalf of
Cogema Resources Inc., which led to the identification of a bullseye GEOTEM®
(EM08) anomaly as well as a northeast-southwest trenching EM conductor, both
of which are coincident with the DC anomaly.(2)

·    VLF Geophysical survey carried out in 1978(4) identified two
anonymous areas, one of which is in close proximity the anomalous DC area.

·    In addition, a 1981 survey(3) collected two anomalous and elevated
U-in-lake sediment results, which also had elevated nickel, zinc and lead -
all elements associated with unconformity related uranium deposits. These two
results are from a lake to the southwest 'down ice' (i.e., the direction where
glacially moved sediments would be transported) of both the DC and VLF
anomalies.

 

SAR Dielectric Constant Estimation Overview

This estimate of relative electrical permittivity works by comparing the
polarisation of reflected or backscattered microwaves that are emitted and
collected by synthetic aperture radar instruments onboard the Sentinel-1 and
ALOS satellites as they orbit above the earth. The comparison between the
waves emitted and received can be used to estimate dielectric constants for
the reflecting surface. The dielectric constants can be considered a proxy of
the 'conductivity' of the surface material at a specific location.

 

This method has been tested in dry ground conditions on gold deposits in
Brazil, as well as extensively throughout South Africa and may present an
innovative aid to exploration in the Athabasca. It cannot give the depth to
the conductivity zone, which would require further geophysical surveys, hence
why Power is looking to expedite the planned EM unmanned aerial vehicle
(drone) survey over Badger Lake.

 

Figure 1: Badger Lake Uranium Project, and Arrow Uranium Project (Nexgen)
Dielectric Constant

 

Badger Lake Uranium Project Overview

The Badger Lake Uranium Project covers an area of 16.71km(2) within the
prolific Athabasca Basin and is surrounded by ground held by major uranium
operators and explorers including Orano SA, Hathor Exploration (owned by Rio
Tinto; LSE: RIO) and NexGen Energy Ltd (TSX: NXE). The property is located
30km east from the Patterson Lake Trend which hosts such deposits as Fission
Uranium's Triple R Project (reported Mineral Resource of 2.69 Mt @ 1.94% U3O8
Indicated) and Nexgen's Arrow Project (reported Mineral Resource of 3.754 Mt @
3.1% U(3)O(8) Measured & Indicated and 4.399Mt @ 0.83 U(3)O(8)
Inferred). A private maintained road runs through Badger Lake, providing easy
access for future field and drilling campaigns.

 

Geological reports highlight that the Badger Lake property is underlain by
around 200-350m of sandstone that sits unconformably over crystalline
basement. A single historical drillhole (BP-07-01) (7) is located on the
property. Drill logs show this hole intersected 325m of Athabasca sandstone,
which included brecciation, clay and hematite alteration, and vuggy quartz -
textures which are typical of alteration within the Athabasca Basin. Below the
geological unconformity contact (within the basement rocks) BP-07-01
intercepted meta-sedimentary rocks with 20m of hematite alteration. In
addition, a common accessory mineral to uranium deposits, calcite, was
reported to coat fractures.

 

The unconformity contact between the sandstone and the underlying crystalline
basement lithologies is the main target for uranium exploration in
Saskatchewan, and deposits such as McArthur River (416 Mlb at 15% U(3)O(8)),
Cigar Lake (152.4 Mlb at 7.55% U(3)O(8)), Hurricane and Phoenix (60 Mlb at
19.1% U(3)O(8)) are located at, or in close proximity to this geological
contact zone.

 

Historical geophysical analysis (2) indicates the presence of a northeast to
southwest trending conductor (which BP-07-01 was drilled in the vicinity of)
which runs between two EM geophysical anomalies. This conductor has never been
drill tested.

 

 

NOTES AND REFERENCES

1:             Source: NexGen Energy Ltd:  Arrow Deposit, Rook I
Project, Saskatchewan NI 43-101 Technical Report on Feasibility Study

                (
https://s28.q4cdn.com/891672792/files/doc_downloads/2022/03/0000-BA00-RPT-0002_2-compressed.pdf
(https://s28.q4cdn.com/891672792/files/doc_downloads/2022/03/0000-BA00-RPT-0002_2-compressed.pdf)
)

 

2:             Source: COGEMA Resources Inc, Laurie Project Report
on GEOTEM Airborne EM and Magnetic Surveys, March, 2002 (74F10-0035R)

 

3:             Source: Saskatchewan Mining Development
Corporation, 1981, Mirror River Project - 1981 Fieldwork (74F09-0031)

4:             Source: Kerr Addison Mines Limited, 1978, Airborne
Electromagnetic Survey, Lloyd Lake Project Saskatchewan (74F10-0013)

5:             Power Metal Resources PLC company announcement,
Uranium Portfolio Update - Athabasca Basin, Canada, dated 5 October 2022

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xqg3g2w
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xqg3g2w)
)

6:             Source: Titan Uranium, 2008, 2007 Diamond Drill
Program Meanwell Lake, Bishop I & Bishop II Projects (74F10-0049)

 

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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