REG - Power Metal Res. - Technical Overview of Drake Lake–Silas Project

Power Metal ResourcesAnnouncement

21/11/2024 07:00

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RNS Number : 0300N  Power Metal Resources PLC  21 November 2024

21 November 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Technical Overview of Drake Lake-Silas Project

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to report on
results from the uranium-focused joint venture (the "Joint Venture" or "JV")
with UCAM Ltd ("UCAM" or the "Investor") involving Power Metal's portfolio of
uranium licences. The following release provides a technical overview of the
JV's Drake Lake-Silas Uranium Project (the "Drake Lake-Silas" or the
"Project"); additional details regarding the Project's recently completed
fieldwork will be released in due course. Drake Lake-Silas is located in the
Central Mineral Belt of Newfoundland & Labrador, Canada.

HIGHLIGHTS:

·      Drake Lake-Silas is comprised of two non-contiguous licences
covering 1,250-hectares (12.5km(2)) and 500-hectares (5.0km(2)) respectively.

·      The Project's geology bears distinct geological similarities to
the contiguous  ATHA Energy Corp (TSXV: SASK). Central Mineral Belt Project
which hosts a 14.5M lbs U(3)O(8) historical indicated and inferred
resource.(1)

·      The Project hosts two known uranium occurrences located along
trend of the nearby resource. The two occurrences include up to 798ppm
U-in-soil and a drilled intersection of 0.27% U(3)O(8) over 0.20m.

·      A phase I field programme has now been completed on the Project,
and the Company has gained access to results from a recently completed gravity
and magnetic survey that was flown over the Project by Xcaliber Multiphysics.

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

"I am grateful to Jack Dann, our Technical Director, for this comprehensive
overview of the opportunity at Drake Lake Silas.

"My hope is that shareholders now have a good understanding of where we are
directing our initial efforts, and we look forward to updating on the progress
of the work in due course."

 

Figure 1: The Location of the Drake Lake-Silas Project within the Central
Mineral Belt, with notable deposits and other nearby operators shown.

 

 

FURTHER DETAILS

 

Introduction to the Central Mineral Belt

The Drake Lake-Silas Project is located within the Central Mineral Belt
("CMB") of Newfoundland & Labrador, Canada. The CMB is a 100km long,
approx. 30km wide area of eastern Canada which is composed of diverse geology
that hosts widespread uranium mineralisation. It contains a variety of
different styles of uranium mineralisation that are developed within a number
of different rock units.

In contrast to the Athabasca Basin, the CMB has comparatively few operators
(Figure 1). The vast majority of claims are held by Latitude Uranium (part of
ATHA Energy Corp; TSXV: SASK) and Paladin Energy (ASX:PDN), the former of
which totally surrounds the Drake Lake-Silas Project.

The CMB spans several different structural provinces, each with their own
distinct geology. Those provinces include portions of the Archean Nain
Province, the Paleoproterozoic Makkovik and Churchill provinces, and the
Mesoproterozoic Grenville Province. The CMB has no firm geographic boundaries
but is instead defined by the distribution of the various mineral occurrences
throughout the region. It is host to most of the uranium mineralisation known
within Labrador and is also well-known for uranium, copper, molybdenum and
rare-earth element mineralisation, and considered to be prospective for Iron
Oxide Copper Gold ("IOCG") Deposits.

Figure 2: Drake Lake Silas Property Geology and Nearby Uranium
Deposits/Targets.

 

Geology of Drake Lake-Silas

In the northwestern part of the Drake Lake and Silas claim blocks, the Heggart
Lake Formation of Helikian age (850 Ma - 1,600 Ma) dominated by sedimentary
rocks including sandstones and conglomerate overlies, through a thrust
contact, the Joe Pond Formation, which makes up the southeast of both claim
blocks. The Joe Pond Formation is composed of Aphebian (1,600 Ma - 2,500 Ma)
metamorphosed mafic volcanic rocks - including pillow lavas and massive
basalts, alongside local lenses of metasedimentary lithologies, including
shales and iron formations.

 

Uranium Mineralisation in Proximity to Drake Lake-Silas

Within 1km of the Project and hosted within identical geology, the Moran Lake
'C' Zone deposit contains a combined historical resource of over 5M lbs
U(3)O(8) indicated and 5.82M lbs U(3)O(8) inferred.(2) The Moran Lake 'C' Zone
is split into four zones, as shown on Figure 2:

Ø Upper 'C' Zone; contained historical resource of 5,190,000lb U indicated at
a grade of 0.034% U(3)O(8)  , 2,840,000 lb U inferred, at a grade 0.24%
U(3)O(8).

Ø Lower 'C' Zone; contained historical resource of 1,600,000lb U inferred, at
a grade of 0.05% U(3)O(8)

Ø Trout Pond; contained historical resource of 480,000lb U inferred, at a
grade of 0.055% U(3)O(8)

Ø Armstrong; contained historical resource of 900,000lb U inferred, at a
grade of 0.041% U(3)O(8)

The Upper 'C' Zone consists of uranium mineralisation hosted within strongly
brecciated and altered mafic volcanic rocks and shear zones, hosted by the Joe
Pond Formation of the Moran Lake Group. Mineralisation at Trout Pond and
Armstrong is similar to that at Upper 'C' Zone,(3) both are open along strike
and at depth.

The Lower 'C' Zone contains a different style of mineralisation than at the
Upper C zone,(4) with uranium hosted in a sandstone and conglomerate that
rests above a sequence of volcanic rocks of the Bruce River Group.(2) In
addition, to the uranium resources of the Moran Lake 'C' Zone, inferred
vanadium resource of 15.81 million pounds of V(2)O(5), at 0.088% V(2)O(5) are
present.(5)

Both the Bruce River and Moran Lake groups extend into the Drake Lake-Silas
Project (Figure 2).

 

Uranium Occurrences on the Drake Lake - Silas Project

There are currently two uranium occurrences and one copper occurrence(6) found
within the Project (Figure 2). The first uranium occurrence is located along
strike from the Moran Lake 'C' zone as outlined above. This occurrence is
named 'Anomaly No. 16 prospect' ("No. 16") and it consists of a significant
radiometric anomaly, which ground-based prospecting has indicated is composed
of three subparallel zones measuring from 50 to 150 m wide which trend
approximately east-west. From this zone chip sample assay values yielded up to
2.02% U(3)O(8).(6) Recent mapping has suggested that No. 16 is part of the
larger Moran Lake 'C' zone mineralisation corridor and likely represents the
extension of mineralisation developed in the area of the Armstrong deposit.(3)
No. 16 also contains hematite-rich breccias associated with uranium
mineralisation, which are similar to those seen in the Upper 'C' Zone
deposit.(3) Geochemical sampling by a previous operator(7) has identified up
to 798 ppm U-in-soil from No. 16 as well as a Cu-in-soil anomaly.

Located 1.7 km to the southwest of No. 16, and in the same mapped geology to
the Lower 'C' Zone, the 'Anomaly No. 15 prospect' ("No. 15"), is another
significant radiometric anomaly, on which limited exploration has uncovered
two uranium occurrences hosted in east‒west-trending fractures within a
conglomerate. Significantly, a small drill programme by Brinex in 1979
intersected alteration similar to that found at the Lower 'C' Zone including
0.27% U(3)O(8) over 0.20m.(7)

On the Silus claim block, there is one recorded mineral occurrence, the
'Northeast Silas Lake Copper showing', which consists of a small occurrence of
chalcopyrite within a shale unit. Historical exploration(9) has identified a
mineralised boulder field with results up to 2.48% U(3)O(8) for which the
source is inferred to be from within the centre of the Silas Block within the
Bruce River Formation which would be 'up ice' from the copper-rich boulder
occurrence.

 

 

Gravity And Magnetic Survey

 

Xcaliber Multiphysics flew the FALCON airborne gravity and magnetic survey
over the property as part of a wider survey on the ATHA uranium claims within
which Drake Lake-Silas sits. The helicopter survey was flown on a 200m line
spacing, with 4,000m tie lines in late summer 2023.

The previous operator of the Project, and subsequently the JV, were provided
with the results of the survey as it was an operational convenience for
Xcaliber Multiphysics and ATHA to fly over the company's claims, and thus the
data was supplied gratis.

 

 

 

GLOSSARY

 Archean             The Archean Eon is a division of geologic time that spans from around 4

                   billion years ago to 2.5 billion years ago.

 Paleoproterozoic    The Paleoproterozoic is a geological eon that spans from approximately 2.5

                   billion years ago to 1.6 billion years ago. It is the first subdivision of the
                     Proterozoic Eon.

 Mesoproterozoic     The Mesoproterozoic is a geological eon that spans from approximately 1.6

                   billion years ago to 1 billion years ago.

 Conglomerate        Conglomerate is a type of sedimentary rock composed of rounded fragments or

                   clasts that are larger than 2 millimetres in diameter. These clasts are
                     typically cemented together by a matrix of finer-grained material, such as
                     sand, silt, or clay.

 Mafic               "Mafic" is a term used to describe igneous rocks or minerals that are rich in

                   magnesium (Mg) and iron (Fe).

 Brecciated          "Brecciated" is a term used to describe a type of rock or mineral texture

                   characterised by the presence of angular fragments or clasts that are cemented
                     together by a matrix of finer-grained material. Brecciation is important for
                     geologists, as it illustrates a highly pressured fluid passed through the
                     rock. Fluid flow is a key factor in the development of many economic mineral
                     deposits.

 Hematite            Hematite is a common mineral with the chemical formula Fe(2)O(3), composed of

                   iron (Fe) and oxygen (O). It is often associated with hydrothermal alteration
                     and is often found associated with mineral deposits.

 Altered/alteration  Hydrothermal alteration occurs when hot, mineral-rich fluids migrate through

                   rocks, causing chemical reactions that lead to the formation of new minerals
                     and the alteration of existing ones.

 

 

 

REFERENCES

1:                    ATHA Energy Corp
https://athaenergy.com/projects/cmb/ (https://athaenergy.com/projects/cmb/)

2:                    Morgan, J.A. and Giroux, G.H.2008:
Form 43-101 Technical Report on The Central Mineral Belt (CMB) Uranium
Project, Labrador, Canada.NI 43-101 Technical report

3:                    Sparkes, G.W. 2017: Uranium
mineralization within the Central Mineral Belt of Labrador: A summary of the
diverse styles, settings and timing of mineralization. Government of
Newfoundland and Labrador, Department of Natural Resources, Geological Survey,
St. John's, Open File LAB/1684, 198 pages

4:                    Sparkes, G.W. and Kerr, A.2008:
Diverse styles of uranium mineralization in the Central Mineral Belt of
Labrador: an overview and preliminary discussion. In Current Research.
Government of Newfoundland and Labrador, Department of Natural Resources,
Geological Survey, Report 08-1, pages 193-227.

5:                    Kruse, S.K., 2021, NI43-101, Moran
Lake Project, Central Mineral Belt, Newfoundland and Labrador, Canada

6:(                   ) The Mineral Occurrence Data System
(MODS) is the inventory of mineral occurrences in the province. It consists of
an MS Access digital database containing information on approximately 6000
mineral occurrences, and a collection of mineral occurrence maps. For more
information visit: https://www.gov.nl.ca/iet/mines/geoscience/mods/

7:                    Perry, J. 1979: Annual exploration
report for 1978 with appendix5-9 on the Moran and Seal Lake areas, Labrador.
Newfoundland and Labrador Geological Survey, Assessment File LAB/0437, 282
pages.

8:                    Barret, S., 2012, 8th Year Assessment
Report (2011) on Prospecting, Soil Sampling, and Trenching On The Croteau
Property Of The CMB Project, Labrador, Canada, on behalf of Aurora Energy Ltd.

9:                   Christopher, T., 2022, First Year
Assessment Report Central Mineral Belt Uranium Properties, For 4375779 Nova
Scotia Ltd, Work completed from March 2021 to March 2022.

 

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, 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/Caroline Rowe                                                      +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)

 Tim Blythe/Megan Ray                                                           +44 (0) 20 7138 3204

 

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 and is seeking
large scale metal discoveries.

 

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 drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie

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