REG - Power Metal Res. - Significant Uranium Targets Identified at Projects

Power Metal ResourcesAnnouncement

11/10/2023 07:15

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RNS Number : 7123P  Power Metal Resources PLC  11 October 2023

11 October 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Significant Uranium Targets Identified at Two Projects

Significant Uranium Targets Identified at the Tait Hill and Soaring Bay
Projects with Further Exploration Progress Update from Perch River,
Clearwater, Cook Lake and E-12 Projects

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

Highlights

·    Extensive radon gas sampling completed at the Tait Hill and Soaring
Bay projects as part of the 2023 Athabasca work programme have confirmed
multiple significant uranium ("U") targets.

 

·    Significantly, on Tait Hill strong radon results are coincident with
multiple radiometric anomalies at the Mullis Lake north and east targets.
The Company considers Mullis Lake may have geological similarities to the
Rössing uranium deposit located in Namibia and the results obtained from the
radon sampling point to a large target for future exploration.

 

 

·    At Soaring Bay, strong radon results were obtained over a >3km
long northwest-southeast trending shear zone. A significant new zone was also
identified within the dataset which has now been named the 'Southern' target
where three very high results were identified extending for at least 1km from
the main shear zone of interest.

 

 

·    Further prospecting and soil geochemistry work has also been
completed across key target areas of Tait Hill and Soaring Bay and also at
Perch River following the highly anomalous satellite remote sensing
hyperspectral helium results.  The results of laboratory assay tests on soil
samples are awaited.

 

 

·    Drone based magnetic geophysics surveys have been completed over the
Clearwater, Cook Lake and E-12 Projects with results expected shortly.

 

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

"This season's uranium fieldwork continues to surpass our expectations in
terms of the quality and number of significant targets discovered.

"Following very low acquisition costs, we believe we are now adding very
considerable value to a portfolio with well thought out, methodical and
inexpensive exploration, clearly demonstrating the ongoing success of our
business model. We now look forward to the next stage, that of crystallising
the value created for our shareholders.

"We are in discussion with various third parties about ways in which we can do
that, and I look forward to updating shareholders on those discussions in due
course."

 

Tait Hill Project

As discussed on 21  June 2023:
 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)
, fieldwork on Tait Hill was planned to concentrate on two main target areas;

·    The 'Mullis Lake' Target is considered by Power Metal to have strong
geological similarities to the Rössing uranium deposit located in Namibia.
The aim of this work was to test radiometric and hyperspectral anomalies over
this almost wholly untested target.

·    The 'Tait Lake' target where exceedingly high soil results (up to
13,200  parts per million ("ppm") or 1.3% U)(1) and lake sediment results
(99.8(th) percentile) were achieved historically(2). This area has not
received any significant, systematic work, despite the highly anomalous
geochemistry.

On the Mullis Lake Target three 200m spaced soil sampling grids were
established predominantly focused over radiometric and satellite remote
sensing hyperspectral anomalies. On two of these three grids, in-situ radon
gas sampling tests (see explanation below) was conducted in key areas
alongside the soil geochemical sampling. Field teams also noted the presence
of enriched granite outcrop across the project; although the vast majority of
the sampling area was covered by thin soil, boulder fields and swamps. A total
of 248 soil samples, and 43 in-situ radon gas samples were collected.

On the 'Tait Lake' target, a total of 52 soil samples were collected over two
areas, targeting historically elevated soils and radiometric anomalies
utilising 150m sample spacing.

Figure 1: Tait Hill Radon Sampling Results and Soil Sampling Areas

 

Perch River Project

Following the determination of highly anomalous helium results determined by
satellite data hyperspectral analysis, as detailed on 08 September 2023:
https://www.londonstockexchange.com/news-article/POW/helium-anomaly-discovered-on-perch-river/16115743
(https://www.londonstockexchange.com/news-article/POW/helium-anomaly-discovered-on-perch-river/16115743)
, in addition to pre-planned sampling on the northern gravity geophysics
target, the field team completed a high-resolution soil sampling grid,
consisting of 42 soil samples, over the recently identified helium
hyperspectral anomaly.  This sampling was designed to test the soil
geochemistry of the area of the helium anomaly itself, and compliment
historical exploration data available on the property.

In addition, a small soil sampling grid was completed over the northern
gravity low anomaly totalling 102 samples to compliment and complete the
historical dataset available over the area.

Figure 2: Perch River Project Soil Sampling Locations

 

Soaring Bay Project

Fieldwork on Soaring Bay included a soil and radon gas survey focussed along a
northwest-southeast trending structural lineament, targeting areas identified
by the previous exploration on the project.  In total, 64 soil samples, and
36 in-situ radon tests were completed from along, and around this structural
lineament.

In addition, three areas of the Soaring Bay project were prospected for
radioactive pegmatites, to provide modern assays and test historical
radiometric anomalies.  In total, 16 chip samples were collected.

The samples from all three projects are currently undergoing analysis at SRC
Geoanalytical in Saskatoon, Saskatchewan, and ALS Analytical in Vancouver,
British Columbia.

 

 

 

 

 

 

 

Figure 3: Soaring Bay Project Soil Sampling Locations, and Radon Results

 

Fieldwork Overview

For the Tait Hill and Perch River projects, fieldwork was supervised by a
member of the Power Metal technical team enabling rapid modification of scope
to meet the changing access abilities on the projects. The field team were
based in the town of Stoney Rapids, Saskatchewan, approximately equidistant
between the Tait Hill and Perch River projects, with both projects accessed
via helicopter.

Fieldwork on the Soaring Bay property was completed from the town of La Ronge,
Saskatchewan with the project also accessed via helicopter for the duration of
the programme.

 

Radon Results Overview

Radon is a gas generated by the radiogenic decay of uranium, it has a short
half-life (eight days) and therefore could indicate a nearby source of
uranium. Because of the short half-life it is not possible to carry out a
laboratory test on collected radon; and therefore, any measurements must be
completed 'in-situ'.

The method works by excavating a small hole into the soil, with a plastic
'collector' lid, in which sits an electrically charged plate protected by a
series of membranes. As positively charged radon ions interact with the
charged plate, it lowers the electrical charge, which can then be compared
with the charge that is measured before/after placement. The readings are
presented as pCi/m(2)/sec (pCi = PicoCurie, being a measure of the radioactive
decay of radon) and the relative bins for anomalism are shown on both Figure 1
and Figure 3.

At Tait Hill forty-three in-situ radon samples were collected from the Mullis
Lake north and east targets. The sampling locations were chosen to test
various radiometric and hyperspectral anomalies.

These results indicate;

·    The close proximity of both a source of radon, and a radiometric high
on Mullis Lake northern target. This may be suggestive of a potential uranium
source, over an area of approx. 1.5 km(2).

·    On the Mullis Lake eastern target, a radiometric anomaly is
associated with elevated radon results, this location is related to the major
igneous intrusion to the west and is considered a significant target. A
secondary target, associated with elevated helium hyperspectral response is
present, to the northeast of the eastern target.

Soil sampling has been completed across the area, with results pending.
Further discussion will be provided upon receipt of the soil sampling results.

At Soaring Bay, 36 in-situ radon samples were collected. Three in the north,
and 33 in the south. Radon sampling at Soaring Bay was focussed along a
prominent northwest-southeast trending linear structure. Sampling was also
completed along four select transects to the southwest of the main linear
structure. These sample locations were located to test the potential for
buried mineralisation along the fault system.

Significantly, the sampling to the southwest identified a new target, the
"Southern" target, which is in close proximity to an anomalous U-in lake
sediment result in this area. This target is also associated with elevated
helium results, determined via hyperspectral analysis.

Overall, these results are highly supportive of possible uranium
mineralisation along the fault structure and validate the previously
identified prospectivity over the project. Further discussion and details on
the soil sampling completed will be provided upon receipt of the soil sampling
results.

REFERENCES

1 CanAlaska Uranium Ltd, 2009 Report on 2008 Exploration Programme, Grease
River Property (74O09-0024)

2 Geological Survey of Canada, Northern Saskatchewan Lake Sediment
(https://geohub.saskatchewan.ca/datasets/saskatchewan::lake-sediment-geochemistry/about)

 

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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