REG - Power Metal Res. - Uranium Joint Venture: Badger Lake Update

Power Metal ResourcesAnnouncement

18/06/2025 07:02

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RNS Number : 2740N  Power Metal Resources PLC  18 June 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

18 June 2025

Uranium Joint Venture: Badger Lake Update

Drill Targets Established Following Multiple Geophysical and Surficial
Programmes

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to provide an
exploration update for the Badger Lake Uranium Property ("Badger Lake" or the
"Property"). Badger Lake is located in the Athabasca Basin, Northern
Saskatchewan, Canada.

The update concerns work undertaken by Power Metal and Fermi Exploration
("Fermi"). Fermi is the uranium-focused joint venture (the "Joint Venture" or
"JV") comprising Power Metal's portfolio of uranium licences, of which Badger
Lake is a constituent.

HIGHLIGHTS:

·    Badger Lake has undergone comprehensive exploration studies,
including soil geochemical, radon gas, and biogeochemical sampling, along with
airborne electromagnetic and magnetic geophysical surveys, complemented by an
ambient noise tomography ("ANT") survey.

 

·    A diamond drilling programme is currently being designed to test a
highly prospective conductive body which is coincident with geochemical
anomalies.

 

·    The target 'The 'S Zone' on the Property differs from most
unconformity-related uranium targets in the Athabasca Basin, with the
processed geophysical data suggesting a tabular conductive body situated at
the unconformity between two major fault structures.

 

 

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

"This summer, Fermi Exploration will launch five high-impact drill programmes
across our uranium portfolio. With the drill to begin turning in a matter of
days, I'm pleased to update shareholders on the progress of technical work and
target development elsewhere in our Athabasca Basin portfolio.

 

Through a comprehensive work programme, our technical team have identified the
'S-Zone', a highly exciting target on the Badger Lake Uranium Property, and I
look forward to providing further updates on the drilling timeline in due
course."

 

OVERVIEW

Badger Lake has been subject to a comprehensive series of exploration studies
with the objective of defining high-quality drill ready targets.  The studies
include airborne electromagnetic ("EM") and magnetic geophysical surveys, as
well as ground based Ambient Noise Tomography, complemented by soil
geochemical sampling, radon soil gas sampling, and biogeochemical sampling.

These studies have identified a conductive body at an interpreted geological
unconformity located between approximately 220 m and 450 m depth. While
this conductor represents an unconventional target for unconformity-related
uranium mineralisation, it is situated in a structurally favourable setting,
with multiple fault structures and anomalous nickel and cobalt geochemistry
directly overlying the conductor.

The target shares key characteristics with other significant uranium deposits
in the Athabasca Basin, including McArthur River, Millennium, and Phoenix, as
well as the Kiggavik deposit in the Thelon Basin.

A 2,400 m diamond core drilling programme is planned to commence in Summer
2025, pending permitting. The programme is designed to test the conductive
feature and associated faulting in the central portion of the Property.

EXPLORATION SUMMARY

Geochemical Sampling Programme

Combined soil, radon and biogeochemical sampling was completed over the Badger
Lake property in late October 2024, at the time of the survey the Company's
geophysical contractors had not been able to mobilise to site, and thus
historical geophysical data was used to plan the sampling programme.

The combined sampling programme was designed to provide surface coverage of
three conductive geophysical features identified from historical reports by
COGEMA Resources Inc(1),  Dejour Enterprises Ltd2 and Titan Uranium Inc(3).
 

Dahrouge Geological Services of Edmonton collected 290 soil samples, 109 radon
sample points, and 172 biogeochemical samples of Jack Pine tree needles and
branch tips from the Badger Lake Property.

Xcite Electromagnetic ("EM") and Magnetic Survey

The Xcite EM and Magnetic geophysics survey was flown in November 2024 and
January 2025 using the 30 Hz Xcite™ TDEM system, towed by an AS350B3
helicopter platform by Axiom Exploration Group Ltd. The survey collected time
domain electromagnetic data (TDEM), on a line spacing of 100 m, with tie line
spacing at 1,000 m, and was flown at between 20 m and 60 m above ground level.

Ambient Noise Tomography Survey

Ambient Noise Tomography ("ANT") is a type of ground geophysical surveying; in
this method, multiple seismic detectors are placed over an area of interest,
to record the minute movement and activity of seismic waves from earthquakes
generated elsewhere on Earth. Depending on the geology, faults, alteration and
other key inputs for drill targeting, the ground below the sensors will
deflect and very subtly change the trajectory of the seismic waves. These
subtle changes are picked up by the seismic detectors, which are then analysed
to determine the geological features below the surveyed area.

ANT is a highly innovative and efficient surveying technique with a low
environmental impact. It has been used around the world but found particular
success in the Athabasca and Thelon Basin, having been successfully employed
by Forum Energy Metal Corp(4), ATHA Energy Corp(5) and IsoEnergy Limited(6).

The 100 seismic detector survey was deployed in mid-May 2025 by Axiom
Exploration Group, with the results provided to Fermi Exploratorium's
Technical team in early June 2025.

 

Geophysical Survey Results

The magnetic survey results reveal an east-west trending magnetic low in the
centre of the Property (Figure 1). The Clearwater River Fault, a regionally
significant structure(7), occurs in the western portion of the Property, where
survey data and structural geology indicate an offset. This offset faulting is
inferred to represent a potential dilation zone with extensional faulting.
Such zones are known to enhance basement porosity through fault structures,
and may have served as conduits for fluid flow both prior to and during
potential mineralisation in the area. Magnetic lows are well-established
targets for unconformity-related uranium across the Athabasca Basin, with
explorers across the Basin targeting similar structures to the magnetic low on
Badger Lake(8).

 

Figure 1: Magnetic (TRP 1VD) response on the Badger Lake Property, note the
east-west trending magnetic low, with the electromagnetic response that is
spatially related to anomalous nickel and cobalt in soil, with the S-Zone
directly overlying the magnetic low.

 

 

Figure 2: Side-on view of the S-Zone and its relation to the inferred
unconformity. The location of this slice is shown on Figure 1. Note how the
conducive body of the S-Zone rests at the inferred unconformity.

 

 

Figure 3: The morphology of the conductive unit is shown in relation to the
2,950 m/s shear velocity surface interpreted from the ANT survey,
representing the inferred unconformity. Inferred fault structures, which
appear to control the conductive unit (up to 0.57 mS/m) are also presented.
This scene is approx. 260 m below the land surface.

 

The electromagnetic survey has identified a conductive body approximately
1.5 km by 750 m in size, coincident with a shear velocity of between 0.52
and 0.59 mS/m, located in the centre of the Property and directly overlying a
magnetic low. Three-dimensional inversion of the EM data indicates that the
conductive body lies between 220 m and 450 m depth below surface. The ANT
survey data suggests that the geometry of the conductive body is strongly
influenced by the morphology of the unconformity and faulting, with the body
situated between two inferred fault structures. This conductive body has been
termed the 'S Zone'.

Exploration in the Athabasca Basin typically targets graphitic conductors,
which form tens and even hundreds of kilometre-long conductive trends within
the basement. Deposits such as McArthur River, Phoenix, and Cigar Lake are
spatially related to graphitic conductors rocks, and although recent
research(9) has suggested that graphite does not have an intimate relationship
with uranium mineralisation. With other factors, such as the proximity of
faulting, considered more important for mineralisation, as demonstrated at
Millenium(10) and Kiggavik in the Thelon Basin(11). However,  graphitic
conductors remain key vectors for uranium mineralisation across the Athabasca
Basin.

The S-Zone conductive body on Badger Lake is not a long, elongate feature, and
does not extend deep (>100m) into the basement, and as such, it is not
considered to be a graphitic conductor. The conductive body's location, at the
unconformity, where fluid flow and reduction/oxidation ("redox") interfaces
could be favourable to ore formation, is a key consideration. According to the
ANT survey data, the conductive body is spatially constrained between two
major fault structures, which also represent topographic 'lows' in the
basement topography (Figure 2), further supporting a potential fluid pathway
or trap during mineralising events.

Additionally, the ANT data indicates the presence of a gradual increase in
shear wave velocity (and thus competency) moving into the basement. This
suggests the presence of a thick 'regolith', possibly up to 80m in thickness.
A 'regolith' represents rocks which have been weathered and altered prior to
the deposition of the Athabasca Sandstone. In the Athabasca Sandstone above
the unconformity, the ANT data suggests east-west dominated structure, it is
unknown what, if any, relation this has to the basement geology. The east-west
structure is on a similar trend to regionally mapped faulting within the
Athabasca Sandstones(7).

Geochemical Survey Results

The surficial geochemical survey results (Figures 1 and 4) reveal a distinct
enrichment of uranium, nickel, and cobalt in soils overlying the S-Zone's
conductive footprint. In the west of this conductive footprint, a 600 m linear
trend (60°NE) exhibits elevated uranium, rare earth elements, lead and
radiogenic ²⁰⁶Pb/²⁰⁴Pb ratios. This trend aligns with a topographic
high that is spatially correlated with the basement faulting outlined above.

 

Figure 4: Uranium and Radon in soil results, overlying the 'S-Zone' Channel 25
Conductivity Anomaly. The linear responses in Radon and linear geochemical
trend appear to have a spatial relationship with basement faulting around the
target.

The presence of a geochemical anomaly along a surficial topographic high of
around 3m above the surrounding area (501 mAOD vs 498 mAOD) is a key
consideration, as it indicates that the samples do not represent reduced
environments, where one may expect enrichments in uranium, lead and other
elements associated with unconformity-related uranium deposits. Instead, the
geochemical anomalies may, more directly, reflect the underlying bedrock
composition or proximity to mineralised structures at depth, implying
potential fluid-flow pathways or mineralisation preserved at depth.

Radon in soil results, although much lower than values recorded from elsewhere
in the Fermi Exploration portfolio, do record multiple linear responses
overlying the east-west trending inferred fault structures within the shallow
sandstones; however, based on the current understanding of the Property's
structural geology, further statements on this relationship would be
speculative in nature. Results from the biogeochemical survey failed to record
any significant anomalies, or spatial correlation with either soil, radon or
geophysical data for the majority of elements.

Technical Discussion

Traditionally, companies have searched for unconformity-related deposits by
targeting conductive graphitic zones, which have been inferred to have played
a critical role in the development of the exceptionally high-grade and
high-tonnage uranium deposits of the Athabasca Basin(8). These conductive
bodies are linear and typically extend many tens of kilometres, and extend
into the basement for a considerable depth.

It is clear that such a feature is not present on Badger Lake, and the Fermi
Exploration Technical Team have not definitively outlined what the conductive
feature may be, however, the conductive S-Zone is located in an area of highly
promising structural geology, with supportive geochemistry.

The vast majority of unconformity-related uranium deposits in the Athabasca
Basin are either directly controlled or strongly influenced by faulting(8)
(12). This influence is attributed to reducing, basement-derived fluids
migrating along fault structures, where they interact with oxidising,
uraniferous basin fluids. These reactions led to uranium precipitation at or
near the unconformity. The morphology of the basement presented in Figures 2
and 3 is a key exploration driver on the Badger Lake property, with two
inferred faults located in close proximity to the conductive feature, and
underlying highly localised enrichment in uranium, cobalt and nickel. The two
faults appear to have generated a 'basement high' - where the basement geology
is raised above the surrounding unconformity; Cigar Lake, is located in such a
location(13), albeit with significant linear conductors.

While the scale of the faulting on Badger Lake is unknown, based on the
airborne magnetic data, it is likely related to major faulting along the
Clearwater River fault, and thus may be highly complicated; many
unconformity-related deposits across the basin share complex structural
geology(8).

The inferred presence of a thick regolith at Badger Lake is a key observation,
as a weathered regolith has played a critical role in the formation of
unconformity-related uranium deposits elsewhere in the Athabasca Basin(14).
Typically, the regolith provides a highly fractured and porous zone that
facilitates fluid flow-a crucial factor, combined with the complex structural
geology in the genesis of unconformity-related uranium deposits(14).

The enrichment of cobalt and nickel directly overlying the 'S-Zone' is also
highly significant, as both elements are spatially associated with
unconformity-related uranium mineralisation(8), including at the Cigar Lake
deposit(13), and spatially related cobalt-nickel and uranium mineralisation is
known from elsewhere in the Athabasca Basin(16).  This spatial relationship,
combined with the uranium and radon enrichments overlying the conductive
feature, present a compelling target for drilling.

Drill Targets and Next Steps

Between five to six diamond drill holes are planned on the Badger Lake
property. Upon receipt of the drill permit and other necessary paperwork,
further information on the proposed drilling timeline will be supplied.

A gravity survey is pending on the Property and will provide a final input to
drill targeting. Gravity data is a key component in the exploration of
unconformity-related uranium deposits, as gravity lows are often associated
with the intense hydrothermal alteration that typically surrounds many
deposits of this type in the Athabasca Basin(8).

Based on the currently available information, two vertical drill holes with a
target depth of 350 m will be planned to test the S-Zone at approximately
300 m below ground level (bgl). An additional three inclined drill holes are
planned to test fault structures to the north and south of S-Zone, each to a
depth of 600 m bgl. Further drill locations will be determined and discussed
in due course.

 

GLOSSARY

 (206/204)Pb isotope results  A measure of the ratio of uranium-derived lead (known as "radiogenic lead"
                              (206)Pb) to non-radiogenic "primordial" lead ((204)Pb). High ratios may
                              suggest uranium mineralisation.
 geophysical inversion        Geophysical inversion is a computational process that transforms geophysical
                              survey data (e.g., gravity, magnetics, electromagnetics) into a 3D subsurface
                              model of physical properties such as density, conductivity, or magnetisation.
                              It helps infer geological structures, alteration zones, and ore bodies by
                              iteratively adjusting a model to fit observed data.
 Regolith                     Regolith is the layer of loose, unconsolidated material covering solid rock,
                              including soil, sand, gravel, and weathered rock. In the Athabasca Basin, this
                              material lies between the solid basement and the Athabasca Sandstones

 

REFERENCES

1 COGEMA Resources Inc, Laurie Project Report on GEOTEM Airborne EM and
Magnetic Surveys, March, 2002 (74F10-0035R)

2 Condor Consulting Inc. (2005). Report on Reprocessing and Interpretation of
Meanwell GEOTEM data for Dejour Enterprises Ltd. Report No. 74F10-0040

3 Titan Uranium, 2008, 2007 Diamond Drill Program Meanwell Lake, Bishop I
& Bishop II Projects (74F10-0049)

4
https://forumenergymetals.com/news/2024/forum-commences-10-000-metre-diamond-drilling-program-on-its-100-owned-aberdeen-uranium-project-nunavut/
(https://forumenergymetals.com/news/2024/forum-commences-10-000-metre-diamond-drilling-program-on-its-100-owned-aberdeen-uranium-project-nunavut/)

5
https://athaenergy.com/atha-energy-provides-updates-on-2024-exploration-program/
(https://athaenergy.com/atha-energy-provides-updates-on-2024-exploration-program/)

6
https://www.isoenergy.ca/news-media/news/isoenergy-generates-six-new-high-priority-drill-targets-at-larocque-east-project-following-ant-surveys
(https://www.isoenergy.ca/news-media/news/isoenergy-generates-six-new-high-priority-drill-targets-at-larocque-east-project-following-ant-surveys)

7 Scott, B.P., Simmon, W.L., 1986, Compilation Bedrock Geology Lloyd Lake, NTS
Area 74F; Saskatchewan Energy and Mines, Report 231

8 Jefferson, C.W., Thomas, D.J., Gandhi, S.S., Ramaekers, P., Delaney, G.,
Brisbin, D., Cutts, C., Portella, P. and Olson, R.A., 2007.
Unconformity-associated uranium deposits of the Athabasca Basin, Saskatchewan
and Alberta. Bulletin-geological survey of Canada, 588, p.23.

9 Song, H., Chi, G., Wang, K., Li, Z., Bethune, K.M., Potter, E.G. and Liu,
Y., 2022. The role of graphite in the formation of unconformity-related
uranium deposits of the Athabasca Basin, Canada: A case study of Raman
spectroscopy of graphite from the world-class Phoenix uranium deposit.
American Mineralogist, 107(11), pp.2128-2142.

10 Bruce, M., Kreuzer, O., Wilde, A., Buckingham, A., Butera, K. and Bierlein,
F., 2020. Unconformity-type uranium systems: A comparative review and
predictive modelling of critical genetic factors. Minerals, 10(9), p.738.

11 Gare, A., Benedicto, A., Mercadier, J., Lacombe, O., Trave, A., Guilcher,
M., Richard, A., Ledru, P., Blain, M., Robbins, J. and Lach, P., 2021.
Structural controls and metallogenic model of polyphase uranium mineralization
in the Kiggavik area (Nunavut, Canada). Mineralium Deposita, 56, pp.1263-1296.

12 Li, Z., Chi, G., Bethune, K.M., Eldursi, K., Quirt, D., Ledru, P. and
Gudmundson, G., 2018. Numerical simulation of strain localization and its
relationship to formation of the Sue unconformity-related uranium deposits,
eastern Athabasca Basin, Canada. Ore Geology Reviews, 101, pp.17-31.

13 Bharadwaj, B., Bishop, C.S., Renaud, A.D. and Rowson, L. (2024) *Cigar Lake
Operation, Northern Saskatchewan, Canada: National Instrument 43-101 Technical
Report.* Prepared for Cameco Corporation, Effective Date: 31 December 2023,
Report Date: 22 March 2024.

14 Qiu, H., Lin, H. and Yang, J., 2023. Effects of Paleoregolith and Fault
Offset on the Formation of Unconformity-Type Uranium
Deposits. Minerals, 13(11), p.1381.

Vancouver

15 Qiu, H.; Lin, H.; Yang, J. Effects of Paleoregolith and Fault Offset on the
Formation of Unconformity-Type Uranium Deposits. Minerals 2023, 13, 1381.
https://doi.org/10.3390/min13111381

16 Hately, J., Brown, F., 2022, Independent Technical Report on the West Bear
Project, Saskatchewan for UEX Corporation, Hatley Engineering and Applied
Technologies Inc.

 

 

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/Jen Clarke                                                         +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 project portfolios 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.

 

Property 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 Property 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 distributions of assets.

 

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