REG - Power Metal Res. - Exploration Update – Significant Uranium Targets

Power Metal ResourcesAnnouncement

20/11/2023 07:00

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RNS Number : 9060T  Power Metal Resources PLC  20 November 2023

20 November 2023

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Exploration Update - Significant Uranium Targets

Follow Up Exploration Confirms Significant Uranium Mineralisation at Tait Hill
and Soaring Bay

 

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 1,012km(2) across 17
properties (collectively the "Uranium Portfolio") in and around the prolific
Athabasca Basin in Saskatchewan, Canada.

Initial radon gas sampling results from Tait Hill and Soaring Bay were
announced to the market on 11 October 2023 and can be found at the link below.

https://www.londonstockexchange.com/news-article/POW/significant-uranium-targets-identified-at-projects/16161347
(https://www.londonstockexchange.com/news-article/POW/significant-uranium-targets-identified-at-projects/16161347)

The results presented herein are the soil geochemical sampling results over
the same targets which have further demonstrated significant uranium
prospectivity and enabled refinement of potential drill targets.

HIGHLIGHTS

Tait Hill

·    At Tait Hill's Mullis Lake Target, very significant uranium ("U")
anomalies (up to 164ppm U) in soil were encountered which is strongly
coincident with radon anomalies announced on 11 October 2023 as well as
historical radiometric anomalies, highlighting the prospectivity of this
target area.

 

·    The Company believes that the Mullis Lake Target has geological
similarities to the Rössing uranium deposit located in Namibia, and the
results obtained from this soil and radon gas sampling point to a large target
for future exploration.

Soaring Bay

·    At Soaring Bay, the soil geochemistry results highlight areas of
strong anomalism which supplement and support the strong radon results
presented on 11 October 2023, which highlighted a significant >3km long
northwest-southeast trending mineralised shear zone.

 

Kernaghan and Durrant Lake

·    High-resolution airborne electromagnetic ("EM") geophysics surveys
have now been completed on the Kernaghan and Durrant Lake properties with
results pending.

 

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

"Power Metal provides one of the few opportunities for UK investors to get
meaningful exposure to uranium exploration. We hold the largest ground
footprint of any UK listed entity in and around the Athabasca Basin,
Saskatchewan, Canada currently amounting to over 1,000km(2).

"The 2023 Athabasca uranium exploration work continues to deliver exceptional
results, with today's news confirming and refining significant uranium
prospective targets at the Tait Hill and Soaring Bay properties. Added to the
results announced in September at Perch River and Badger Lake, so far, four of
the nine Athabasca properties we have explored in the 2023 programme have
delivered major tangible results.

"Further updates from this programme are expected in the near term, together
with news in respect of the planned admission of Uranium Energy Exploration,
where significant progress has been made recently.

"It is notable that our work continues whilst the spot price of uranium is
approaching US$80/lb, a level last seen around 15 years ago. This underlying
commodity strength has been bolstered by the increasing global acceptance that
expanding nuclear power generation is critical for reliable low-carbon energy
with a growing supply deficit facing the industry.

"In response, Power Metal will continue to advance its uranium interests at
pace, and we believe the considerable tangible progress being generated
through this work will, in due course, translate into substantial value for
shareholders."

 

FURTHER INFORMATION

Tait Hill Project - 2023 Recap

During the 2023 field season, Power Metal successfully completed the most
comprehensive exploration programme across the Tait Hill Project in the last
several years. The work was focussed on the Mullis Lake as well as Tait Lake
targets and included the completion of high-resolution radon gas and soil
geochemical sampling grids, as well as general prospecting, rock sampling and
geological mapping. A member of Power Metal's technical team was onsite for
the first week of the Tait Hill Project programme to aid in sampling and
ensure company protocols were met.

Mullis Lake Target:

The Mullis Lake Target is of great interest to Power Metal Resources due to
the geological similarities it shares with the Rössing uranium deposit
located in Namibia. These deposits are characterised by large footprint, high
tonnage, but relatively low-grade mineralisation, and are spatially and
temporally related to fertile intrusions - thus they are known as
'intrusive-type' uranium deposits.

Three sub-targets have now been defined at the broader Mullis Lake Target.
Sub-target A - located to the north of the main mapped intrusion, which
historically returned up to 825 ppm U-in-rock chip and is defined by multiple
radiometric anomalies. A total of 81 soil and 22 in-situ radon gas samples
were collected at this sub target. Sub-target B is located to the northeast of
the intrusion on which 92 soil samples and 17 in-situ radon gas samples were
collected. Sub-target C is located to the southeast of the main mapped
intrusion. A total of 70 soil samples were collected over sub-target C.

All soil samples from the 2023 campaign were collected from the B-horizon and
analysed at the Saskatchewan Research Council Geolab in Saskatoon for a
partial leach (aqua regia). Details of the methodology of the radon sampling
are present in the prior RNS release (dated 11 October 2023).

Mullis Lake - Sub-target A

The 2023 results show a strong, sustained, enrichment of radon (up to 3.47
pCi/m(2)/sec) within the sub-target, which is supported by a strongly
anomalous 164 ppm U-in-soil result. In the north of the grid, two elevated
radon results (3.42 and 3.54 pCi/m(2)/sec), with two further high results,
provide a broad east-west target approx. 800 m long, supported by high
U-in-soil (30 & 29 ppm U). Approx 450 m to the south, a further occurrence
of high uranium in soil (up to 54 ppm) is present.  This area is also
coincident with multiple historical radiometric anomalies.

Finally, near the eastern edge of the grid, a highly anomalous 4.47
pCi/m(2)/sec radon reading was recorded approx. 150 m to the northern edge of
the mapped granite; this was not accompanied with an elevation in uranium soil
geochemistry but suggests the potential for a buried uraniferous source.

Mullis Lake - Sub-target B

The 2023 results indicate a sustained 1,800 m long area of elevated radon
extending to the northeast from the granite, which is also coincident with a
historical radiometric anomaly. Soil results over this sub-target confirmed
localised areas of uranium enrichment in soils. Additionally, samples from the
eastern part of the sub-target area recorded phosphorus enrichment.

The previously noted elevated radon results located in the northeastern part
of this sub-target (up to 3.46 pCi/m(2)/sec) do not appear to be associated
with elevated uranium in soil, thus suggesting the potential for a further
buried uriniferous source.

Mullis Lake - Sub-target C

Work on the Mullis Lake Sub-target C targeted radiometric highs parallel to
the mapped granite. Results from this grid returned localised areas with
uranium enrichment in soil up to 22 ppm U, which was also associated with a
coincident radiometric high.

Summary

The work completed this field season has provided the first systematic soil
sampling and the first radon gas sampling over the Mullis Lake Target. The
results successfully generated multiple robust targets for follow-up work.

In particular, the identification of sustained elevated radon results which
extend for approximately 1.8 km in a northeast-southwest orientation, which
originate from the main mapped granitic body, is very exciting. In addition,
at sub-target A, the work completed has yielded two areas of significant
interest, including 1) near the southern extend of the sub-target where a
highly anomalous soil result of 164 ppm U was encountered which is coincident
with elevated radon results, and 2) to the north where radiometric anomalies
are strongly coincident with sustained elevated radon and soil results. In
summary, the results now received from the Mullis Lake Target have greatly
enhanced the areas prospectivity, through systematic and cost-effective
exploration.

Figure 1:  Mullis Lake Target Results

 

Tait Lake Target:

The Tait Lake Target area is defined by multiple historical peat/marsh samples
which returned highly anomalous uranium results (up to 14,359 ppm U)(1). In
addition, the Saskatchewan Mining Development Corporation in 1980 completed a
detailed lake-sediment sampling programme across Tait Lake where they defined
308,000kg of uranium with an in-situ value of US $25.6 million (c. US$50
million at US$78/lb uranium).(2) No modern sampling has been completed over
this target. Two sampling grids, completed at 100 m sample and line spacing,
were completed by Power Metal.

Tait Lake Target - Western Grid

The western grid was centred over the highly anomalous historical uranium
geochemical results, which are believed to be peat/marsh samples. This area is
also defined by a broad historical radiometric anomaly. The 2023 results
returned sustained, as well as localised, uranium enrichment over this target
area with B-horizon results up to 33 ppm U and a sustained anomaly located
within the defined radiometric anomaly.  The results suggest that uranium
within the highly anomalous historical samples has been transported from the
surrounding uranium-rich geology and accumulated in swamps and marshes.
Therefore, the prospectivity of the grid, and the 'catchment' area of these
depressions makes them highly prospective for further uranium occurrences.

Tait Lake Target - Eastern Grid

Designed to investigate an area with 1) a historical peat/marsh sample which
returned 13,200 ppm U; 2) highly anomalous U-in-lake sediment results; as well
as 3) multiple radiometric anomalies. Significantly, the 2023 results returned
a highly anomalous U-in-soil result of 111 ppm which is located in close
proximity to the historical result of 13,200 ppm U; this was taken within a
small swamp, and thus, is artificially enriched in uranium. In addition,
within the footprint of the nearby radiometric uranium high, multiple highly
elevated results (compared to the surrounding samples collected within this
fieldwork) 36, 55 and 21 ppm U are present. These results suggest a local
source of uranium, over approx. 500 x 200 m.

Figure 2:  Tait Lake Target

 

Soaring Bay Project - 2023 Recap

The 2023 programme included a soil and radon gas survey focussed along a
prominent northwest-southeast trending structural lineament.  In total, 64
soil samples, 36 in-situ radon samples and 16 rock samples were collected
proximal and within this structural lineament across two grid areas. Both soil
and radon sampling was completed along the linear feature and in multiple
survey lines oriented 90° off the fault - designed to test for buried
mineralisation along the extent of the fault. This feature had not been tested
since the 1980s, and thus, it was determined that a systematic radon and soil
survey combined with analysis utilising modern assay methods would provide
highly valuable information for future field campaigns.

Southern Structural Lineation Target

The 2023 radon results show a significant enrichment along the structural
lineation itself, with results up to 6.46 pCi/m(2)/sec, a significant level of
enrichment compared against the lowest sample result from the survey of 0.59
pCi/m(2)/sec. Results are sustained along two occurrences between 300 and 200
m long.  To the southwest of these occurrences, further elevated radon
results (in the north, up to 4.71 pCi/m(2)/sec, and the centre 2.27
pCi/m(2)/sec.) are present. 300m of sustained strong radon responses were
present in the southernmost line of the grid, with three results above 4.39
pCi/m(2)/sec, and the greatest of 6.13 pCi/m(2)/sec;

The 2023 soil results show three areas of interest; 1) near the northern part
of the southern structural target soil sample results returned 20ppm U (incl.
63pp Lanthanum and 71ppm Yttrium) which is coincident with strongly elevated
radon results; 2) near the central part of the grid a highly anomalous soil
result returned 127 ppm U  which also recorded 2.67 pCi/m(2)/sec radon, this
sample is also elevated for Rare Earth Elements ("REE"), with Lanthanum (153
ppm) and Yttrium (80 ppm) potentially suggesting a common link between the two
most enriched soil samples; and 3) in the extreme southeast of the grid, in
the same samples which have a strong, sustained radon response (discussed
above), results of between 2 and 7 ppm U were also identified. This area
represents the strongest sustained radon response over a broad area.

Northern Structural Lineation Target

Radon results along the northern structural lineation target highlighted
moderate anomalism. They were also coincident with sustained and moderately
anomalous U-in-soil results with a maximum result of 13ppm U.

Summary

The results from the soil and radon sampling over the structural lineament
target at Soaring Bay has proven the existence of products of uranium decay
along a significant structural lineation, with elevated U-in-soil. This has
proven the historical radon occurrences and added further targets to the
southwest of the structural lineation. Rock sampling targeting areas of
historical REE enrichment have returned moderately elevated results. Further
analysis will be completed by the Company in order to determine any
significance of the presence of these pegmatites within Soaring Bay.

 

Figure 3:  Tait Lake Target

 

REFERENCES

1:           D. Car and G. Dickson, Saskatchewan Mineral
Development Corporation Exploration, Geological and Geochemical Sruveys and
Prospecting - Tait Lake CBS 5479, April 1977,

2:          C. E. Roy and S. A. Earle, Saskatchewan Mineral
Development Corporation Exploration - Summer 1980, Grease River-Scott Lake
Project, CBS 5479, 5539, 5869 (74O09-0022). December, 1980

 

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.

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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