REG - Power Metal Res. - Helium Anomaly Discovered on Perch River

Power Metal ResourcesAnnouncement

08/09/2023 07:00

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RNS Number : 7878L  Power Metal Resources PLC  08 September 2023

8 September 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Highly Significant Helium Anomaly Discovered on Perch River Uranium Project

 

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and
development company, announces the discovery of a significant helium anomaly
at its 100% owned Perch River Uranium Project ("Perch River" or the "Project")
within the Athabasca Basin, Saskatchewan, Canada.

Highlights

·    Hyperspectral data analysis using Sentinel-2 satellite data on
mineral reflectance ("Hyperspectral Analysis") conducted at Perch River has
identified several helium anomalies on the Project, including the discovery of
one extremely strong helium response in the centre of the Project (see figure
1).

 

·    The very strong helium response could be indicative of significant
buried uranium mineralisation or leakage of helium from a buried helium
reservoir at depth (further detailed below).

 

·    As a response to the discovery of this significant helium target, the
crews currently active on the Company's uranium portfolio have been
repositioned in order to complete a high-resolution soil sampling grid over
this target area.

 

·    The Company plans to engage a helium gas specialist to determine
optimal next steps to further develop this target.

 

 

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

"It is very exciting to be able to deliver this news to shareholders. As we
have previously reported, this season's wider uranium fieldwork remains
ongoing and further updates will be provided in due course.

"However, the indications we have had from Perch River could be hugely
significant and warranted immediate release.

"Whilst it is always important to manage expectations, it is fair to say that
the discovery of such a strong anomaly has far exceeded our expectations and
sets the scene for what we hope to be a strong schedule of newsflow from our
uranium portfolio overall."

 

HYPERSPECTRAL ANALYSIS OF THE PERCH RIVER PROPERTY

Power Metal commissioned Dr Neil Pendock, a highly respected remote sensing
consultant, to complete a hyperspectral data compilation and processing study
over Perch River. Results from the study highlighted the presence of several
very strong helium anomalies on the Project. The source of these anomalies is
currently unknown but has been postulated by Dr Pendock to be related to
either:

Ø Buried uranium mineralisation - Helium is a daughter product of the
radiogenic decay of uranium and is known to be enriched over uranium deposits
elsewhere in the Athabasca Basin including Cameco Corporation's Millenium
deposit.

Ø Gas leakage up along the north-south oriented fault structure from a buried
helium reservoir at depth.

Ø Leakage from a buried hydrocarbon reservoir - often helium is trapped
alongside natural gas in hydrocarbon reserves which is considered by the
Company and Dr Pendock to be the least likely scenario.

Significantly, the strongest helium response identified by the Hyperspectral
Analysis is almost perfectly coincident with, 1) the large and most
significant gravity low anomaly on the Project (2007 survey completed by Bell
Geospace on behalf of Purepoint Uranium Group Inc)(1), 2) an area of
uranium-in-soil enrichment (surveys completed in 2011, 2013 and 2014 by
Purepoint Uranium Group Inc.), 3) east-west oriented government defined
geophysical conductors (see figure 2), and 4) a north-south oriented fault
splay.(2)

The Company believes the coincidence of these various features further adds
weight to the significance of this newly discovered helium target in
particular the gravity low anomaly which is a response to an area with lower
density than its surroundings (which is deemed by the Company to possibly be a
gaseous reservoir).

Furthermore, the presence of previously identified soil geochemical uranium
anomalies over the helium target area further supports the possible presence
of uranium enrichment in the immediate area, and the interpreted fault
structure could act as the conduit for the leakage of helium gas to surface
from uranium mineralisation located at depth (see figure 2).

Power Metal is looking to contract an in-country gas specialist in order to
review possible next steps which may include a detailed desktop analysis as
well as a helium-in-soil survey (subject to crew availability) in order to
advance this exciting new target. Other possible exploration steps will be
determined as the review continues.

Figure 1: Perch River Project Helium Occurrence Map.

 

 

 

Figure 2:  Perch River Project Helium Occurrence Inset Map.

 

GLOSSARY

Hyperspectral - Hyperspectral imaging concerns the collection and processing
of information from continuous and contiguous ranges of wavelengths across the
electromagnetic spectrum.

NOTES AND REFERENCES

1:                    Purepoint Uranium Group. September
2007; Final Report Acquisition & Processing; Airborne Full Tensor Gravity
Gradiometry (Air-FTG) survey, Umfreville Project Athabasca Basin, Canada.
(74P02-0023)

2:             Terraquest Ltd; September 2010; Horizontal
AeroMagnetic Gradient & XDS VLF-EM Survey Newnham & Umfreville Blocks
Athabasca Basin, Saskatchewan (74P02-0024)

 

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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