REG - Power Metal Res. - Exploration & Project Development Update

Power Metal ResourcesAnnouncement

31/08/2023 07:00

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RNS Number : 8748K  Power Metal Resources PLC  31 August 2023

31 August 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Exploration & Project Development Update

 

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and
development company, announces an exploration and project development update
covering multiple projects within the Company's portfolio.

The update includes the Company's North Wind Lithium Project located in
Ontario, Canada, the Tati Gold Project located near Francistown, Botswana, as
well as the ongoing exploration targeting Power Metal's uranium-focused
portfolio in Saskatchewan, Canada.

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

"I am very pleased to be able to provide this update on three of our high
priority exploration programmes.

"Shareholders will, I am sure, be reassured that despite difficult conditions
in the capital markets, we are pressing ahead with our operational plans and,
in our view, continue to generate significant value.

"I am very grateful to all our teams for the efforts they continue to make in
often challenging environments, and I look forward to being able to provide
further updates when appropriate."

 

HIGHLIGHTS:

North Wind Lithium Project

-      The 100% Power Metal owned North Wind Lithium Project ("North
Wind") is considered by the Company to be prospective for the discovery of
pegmatite hosted lithium mineralisation. Lithium (Li)-caesium (Cs)-tantalum
(Ta) bearing pegmatite ("LCT-pegmatite") accounts for approximately a quarter
of the world's lithium production.(1)

 

-      The exploration programme at North Wind was outlined in the
Company's announcement dated 10 August 2023 which may be viewed through the
following link:

 

https://www.londonstockexchange.com/news-article/POW/ion-battery-resources-lithium-exploration-underway/16077625
(https://www.londonstockexchange.com/news-article/POW/ion-battery-resources-lithium-exploration-underway/16077625)
 

 

-      The exploration work programme is now complete and a total of 389
soil geochemical samples were taken.  The samples will soon be delivered to
an accredited laboratory for assay testing focussed on Li-Cs-Ta
mineralisation.

 

-      Significantly, several pegmatites were identified across North
Wind, with five pegmatite samples collected - which was a key ground
exploration objective.  The mineralisation present within the identified
pegmatites will be determined during the assay testing process and based on
interpretation of this data further exploration steps will be determined.

Tati Gold Project

-      The 100% owned Tati Gold Project ("Tati") is centred on a historic
gold mine, Cherished Hope, and extensions of high-grade near surface gold
mineralisation were confirmed during drilling campaigns carried out by Power
Metal in 2021 and 2022.

 

-      The exploration programme at Tati was outlined in the Company's
announcement dated 30 May 2023 which may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-exploration-update/15977383
(https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-exploration-update/15977383)

 

-      Next stage exploration focused on geochemical soil sampling at
Tati is now complete. A total of 280 individual samples were collected across
two grids:

 

o  One high-resolution in-fill grid is focussed on an area approximately 2km
northwest of the historical Cherished Hope Gold Mine and is centred on one
point anomaly which historically returned an impressive soil sample of 2.15g/t
Au. To date, this anomaly has never been further investigated to determine the
provenance of this gold mineralisation; and

 

o  The second grid covers the immediate southwestern extension of Cherished
Hope where individual point anomalies returned a soil sample as high as
0.84g/t Au.

 

-      The soil samples have been sent to Intertek Genalysis in Perth,
Western Australia for assay and final results are expected shortly.

 

-      Site rehabilitation of the fines dumps covering Tati have been
completed in preparation for the next phase of exploration and development.
This rehabilitation work included removal of the fines dump and clearing the
site of material considered by Power Metal to be suitable for processing at a
local facility.

 

-      The Company has received inbound interest regarding the potential
for small-scale mining at its Cherished Hope Gold Mine area where near-surface
drilling results in 2022 returned bonanza gold up to 47.1g/t Au over 1m (from
6m downhole).(2)

 

-      Further updates on next stage exploration and potential site
developments at Tati will be provided to the market in due course.

Athabasca Uranium Projects

-      The exploration programmes at the Company's Athabasca uranium
properties were outlined in the Company's announcement dated 21 June 2023
which may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/key-uranium-exploration-and-corporate-developments/16007249
(https://www.londonstockexchange.com/news-article/POW/key-uranium-exploration-and-corporate-developments/16007249)

 

-      The exploration programme at the key Reitenbach property has been
successfully completed with a further update expected following receipt and
interpretation of exploration results.

 

-      At present, work is underway at Tait Hill with field work expected
to commence at Soaring Bay and Perch River shortly.  For this phase of work,
Power Metal has sent direct company representation to Saskatchewan to work
alongside our in-country geological consultants from Dahrouge Geological
Consulting Ltd - whom have extensive experience in Saskatchewan and across
Canada.

 

-      Shareholders may be aware of significant active wildfires in the
Athabasca region including in nearby Northwest Territories, which have caused
disruption to various areas and some restrictions on availability of key
resources, including helicopter availability.  Wildfires have occurred within
the boundaries of certain Power Metal properties, and, in response, certain
exploration plans have required adjustment. Work programmes on certain
projects, particularly select geophysical surveys, will be completed later
into the autumn and winter season.

 

-      The board of Power Metal would like to note the commitment and
resilience of the in-country exploration teams who have continued operations
despite the ongoing challenging conditions.

References

1:            United States Geological Survey, Scientific
Investigations Report 2010-5070-O, Mineral-Deposit Model for
Lithium-Cesium-Tantalum Pegmatites, 2017.

( https://pubs.usgs.gov/sir/2010/5070/o/sir20105070o.pdf
(https://pubs.usgs.gov/sir/2010/5070/o/sir20105070o.pdf) )

2:            Company announcement, Tati Project Botswana Initial
Drill Assay Results, 02 November 2022

(
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862
(https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862)
)

 

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 (AIM: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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