REG - Power Metal Res. - Ion Battery Resources-Lithium Exploration Underway

Power Metal ResourcesAnnouncement

10/08/2023 07:00

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RNS Number : 8605I  Power Metal Resources PLC  10 August 2023

10 August 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Ion Battery Resources - Lithium Exploration Underway

 

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and
development company, announces the launch of lithium exploration at the North
Wind Lithium Project in the Province of Ontario, Canada ("North Wind" or the
"Project").

North Wind is 100% owned by Ion Battery Resources Limited ("Ion") a wholly
owned subsidiary of the Company which is targeting transition metals including
lithium and graphite in mining friendly Ontario, Saskatchewan and Quebec, in
Canada.

Power Metal is now the 100% owner of North Wind (lithium), as well as the
Authier North (lithium) and Doerksen Bay (graphite) projects, which together
represent a compelling and prospective group of battery metals assets focused
in some of Canada's top mining jurisdictions.

On 12 July 2023, POW successfully expediated the earn-in on Ion's Authier
North Lithium Project, and the associated claim transfer into Ion's 100% owned
Canadian subsidiary is now nearing completion.(1)

Separate updates detailing next corporate steps for Ion and exploration
updates for the Authier North lithium and Doerksen Bay graphite projects, will
be provided in due course.

 

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

"Power Metal has a number of interests providing potential exposure to lithium
and we see an opportunity with Ion to create considerable value through a
material investment in active lithium exploration.

Based on studies conducted by the Ontario Geological Survey, and highly
anomalous lake sediment sampling results, the North Winds Project area is
considered highly prospective for lithium pegmatite exploration, and the
significant opportunity means we are moving ahead at pace with this programme.
As is the case across our portfolio, we aim to undertake methodical and
cost-effective exploration, and we look forward to updating shareholders on
the results in due course.

Ion currently represents a small part of the Power Metal global project
portfolio. However, it is shaping up well and we expect to confirm Ion's
planned crystallisation pathway in the coming months."

 

Highlights:

-      The North Wind Project area is considered prospective for the
discovery of pegmatite hosted lithium mineralisation. Lithium-caesium-tantalum
bearing pegmatites account for approximately a quarter of the world's lithium
production. (2)

 

-      Lake sediment sample results from within the Project demonstrate
highly anomalous concentrations of lithium, caesium and tantalum, which will
help guide the current exploration campaign.

 

-      Ion has mobilised exploration crews at North Wind, to undertake
the first ever lithium focussed exploration programme which will include
geochemical sampling as well as prospecting and rock sampling over zones of
interest.

 

-      The ongoing work programme fits with Power Metal's business model
which includes:

o  Acquiring highly prospective exploration assets in mining friendly
jurisdictions through low-cost means including claim staking and/or
option/earn-in/outright purchases;

o  Conducting cost-effective, methodical exploration over the asset in order
to increase the amount of available technical data and inherent asset value;
and

o  Crystallise the increased value of the asset on Power Metal's balance
sheet primarily through spin-outs and or an outright sale/joint-venture.

 

-      The initial deliverable from this important exploration programme
will be a geochemical dataset which will provide important vectors towards the
possible location of covered lithium (Li)-Caesium (Cs)-Tantalum (Ta)-bearing
pegmatites ("LCT Pegmatites") within the North Wind claim boundary. The
exploration field crew have good experience exploring and prospecting for LCT
Pegmatites and if any are encountered at surface they will be sampled and sent
for laboratory assay.

 

Northwind 2023 Exploration Campaign

The exploration programme will be carried out by Ontario based field
contractors with oversight from Power Metal's technical team based in the
United Kingdom. The programme is underway and includes a team of experienced
lithium geologists and field assistants and will consist of soil sampling
orientated at 90° to North Wind Lake (see Fig. 1) as well as prospecting and
rock sampling over any zones of interest. Due to the projects poorly
understood geology and the expected glacial cover (potentially obscuring the
LCT Pegmatites), the planned programme will produce an important dataset which
will provide information about the geological makeup of the area and allow for
vectoring towards potential LCT Pegmatites.

The North Wind project area is accessible via all-terrain vehicles ("ATV") and
boat, allowing for the exploration programme to be completely in a fast and
cost-effective manner.

North Wind Background

The North Wind Project covers a total area of 57.89 km(2) located
approximately 25km to the northeast of Beardmore, Ontario, upon the
Onaman-Tashota Greenstone Belt which is considered highly prospective for LCT
Pegmatite occurrences - the main source of 'hard rock' lithium worldwide.
Despite this prospectivity, no records of lithium focussed exploration over
North Wind exists.(3)

Other lithium explorers and operators within the region include Imagine
Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium Project (with a reported
historical non-compliant resource of 2,000,000 tonnes at 1.09% Li(2)O),
located 50km to the south of North Wind and Green Technology Metals (ASX: GT1)
with their flagship Seymour Project (which hosts a JORC compliant total
Mineral Resource of 9.9Mt at 1.04% Li(2)O) located approximately 65km to the
northwest.

The Project is centred on a granitic intrusion, cut by numerous mapped dykes.
Highly anomalous lake sediment results (detailed further below) suggest that a
zoned LCT-bearing pegmatite system may be present but has never been
investigated. North Wind was identified through detailed research and analysis
by Power Metal's technical team, utilising over 600,000 individual lake
sediment sample points collected by the Ontario Geological Survey ("OGS"), who
also prepared selected recommendations for exploration which were presented in
a OGS open-file report.(4) Based on this data as well as information contained
within the report; the area encompassing the North Wind Project was selected
for the strategic acquisition by staking.

The highly prospective and anomalous lake sediment data contained within the
Project includes:

-      Seven instances of >99th percentile (with respect to regional
data) Li-in-lake sediment results (ranging from 18.63 to 34.95 ppm Li) with
34.95 ppm representing the 99.95th percentile result.

-      Of those seven samples, six are >95th percentile for caesium
(1.26 to 2.21 ppm Cs), with three >99th percentile (1.94 to 2.21 ppm Cs).

-      The seven samples are also noted to be highly elevated in tantalum
with results ranging between 0.6 and 0.9 ppm Ta.

The presence of highly anomalous concentrations of lithium, caesium and
tantalum from samples collected within the same water body by the OGS suggest
a nearby mineralised source, and therefore the Project  is considered by the
Company to be highly prospective for LCT Pegmatite occurrences.

Fig.1 - North Wind Lithium Project Overview Map

References

1:            Company announcement, Acquisition of Authier North
Lithium Project, 12 July 2023

(https://www.londonstockexchange.com/news-article/POW/acquisition-of-authier-north-lithium-project/16038121
(https://www.londonstockexchange.com/news-article/POW/acquisition-of-authier-north-lithium-project/16038121)
)

2:            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) )

3:            Company announcement,   New Lithium Project -
Ontario, Canada, 25 November 2022

(
https://www.londonstockexchange.com/news-article/POW/new-lithium-project-ontario-canada/15731851
(https://www.londonstockexchange.com/news-article/POW/new-lithium-project-ontario-canada/15731851)
)

4:             Ontario Geological Survey Open File Report 6352:
Cundari, R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P., Pettigrew,
T.K., 2019, Report of Activities, 2018 Resident Geologist Program.

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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