REG - Power Metal Res. - Uranium JV Renamed & Exploration Update

Power Metal ResourcesAnnouncement

02/12/2024 07:00

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RNS Number : 2767O  Power Metal Resources PLC  02 December 2024

2 December 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium JV Renamed Fermi Exploration Ltd

Exploration Update for Drake Lake-Silas Uranium Project

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to provide a
corporate update on 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, and to provide a further exploration update for
the Drake Lake-Silas Uranium Project (the "Drake Lake-Silas" or the
"Project").

The Joint Venture has elected to rename the Company's wholly owned Canadian
subsidiary company, 1501158 BC Ltd (formerly Power Metal Resources Canada Inc)
to Fermi Exploration Limited ("Fermi Exploration"), with immediate effect.
This name commemorates the pioneering work of Italian-American physicist
Enrico Fermi in the development of the first nuclear reactor. Fermi
Exploration is a private limited company registered in Vancouver, Canada. The
new internet domain is www.fermiexploration.com
(http://www.fermiexploration.com) and the Fermi Exploration logo is shown in
Figure 1.

A technical update with regards to the Drake Lake-Silas geophysical survey and
target sampling is outlined below. An overview of the geology of Drake
Lake-Silas was released on 21 November 2024, and is available here:

https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/r7z7g7w.

TECHNICAL HIGHLIGHTS:

·    Company has acquired airborne magnetic and gravity geophysical survey
data for the Drake Lake-Silas property at no cost. Drake Lake-Silas was
included in the survey commissioned by the owner of an adjacent property.

·    Magnetic and gravity geophysics data shows a coincident gravity low
slightly offset from a magnetic high; which the Company interprets as being
related to a potential iron-oxide-copper-gold "IOCG" mineralised intrusive
body. Historical rock chip and soil sampling in the centre of the property,
overlying the combined gravity low/magnetic high, recorded elevated copper and
uranium.

·    Five targets have been identified for further work, of which four
were sampled during the fieldwork in September, including the combined gravity
low/magnetic high, an area of potential alteration, a historical uranium
occurrence, and a prospective gravity low. The sample assay results are
pending.

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

"It is very pleasing to be able to further update shareholders on the progress
at Drake Lake-Silas, as we close in on our most prospective targets.

"We are also very pleased to announce the name of the JV company, Fermi
Exploration Ltd, which we are sure is going to become a very well-known name
in the world of uranium exploration."

 

 

 

 

 

Figure 1: Logo of Fermi Exploration Ltd

 

 

Figure 2: Drake Lake Silas Project, Gravity and Magnetic Geophysical Imagery
with Hyperspectral Data Alunite Anomaly and Target Location

 

 

FURTHER DETAILS

 

Combined Magnetic and Gravity Survey

The geophysical survey was flown by Xcalibur Multiphysics in 2023, using their
FALCON® Airborne Gravity Gradiometer ("AGG") and Magnetometer; the survey was
flown with 200m line spacing at 80 m elevation above ground level and flight
lines of 315° with tie lines every 4km at 045°. The survey was commissioned
by Labrador Uranium Inc., the holder of a project adjacent to Drake
Lake-Silas, who provided the data over Drake Lake Silas to the property's
prior operator and, subsequently, Power Canada, in return for allowing the
survey to be flown over the property for operational convenience.

On the western portion of the Drake Lake Silas Property, Drake Lake, the
magnetic geophysics data (First Vertical Derivative) shows a prominent
magnetic high, trending at approximately 40°E (the "Duck Lake Target" on
Figure 2), the accompanying gravity data for this area shows an associated
gravity low slightly offset to the east from the magnetic high.

A similar situation is present on the Moran Lake C Zone(2), approx. 3km to the
northeast, additionally, a magnetic high with offset gravity low is often
considered to be related to intrusive related iron-oxide-copper-gold ("IOCG")
style mineralisation, whereby an iron-rich intrusive body is flanked by less
dense alteration mineralogy(1). Such systems are known from the Central
Mineral Belt and Moran Lake 'C' zone, with its hematite-rich breccias of
magmatic-hydrothermal origin, which has been suggested as being related to
this prolific deposit type(3,4).

Alternatively, the gravity low may represent alteration mineralogy associated
with hydrothermal alteration and potentially uranium mineralisation, with the
magnetic high related to other processes, such as faulting.

On the eastern portion of the Drake Lake Silas Property, Silas, the combined
magnetic and gravity data indicates a further offset magnetic high/gravity low
in the south of the property (the "Silas South West Target" on Figure 1); this
area is down-ice (of former glacial cover) and thus may be a source for a
mineralised boulder field (up to 2.48% U(3)O(8)(5)) in the east of the
property.

 

Project Targets for Exploration

Following the receipt of the geophysical and hyperspectral data and the
completion of a data review of the historical exploration conducted on and
around the Drake Lake Silas property, the Power Metal Resources technical team
identified five target areas for exploration:

-      Duck Lake Target: As outlined above, consists a significant
magnetic high/offset gravity low in the centre of the property. This target,
along with the Anomaly 16 Target and South West Duck Lake Target, is noted to
be along trend of Moran Lake 'C' Zone, within similar geology. The Duck Lake
Target has never received systematic sampling or prospecting.

 

-      Anomaly 16 Target: This historical target was first identified as
a radiometric anomaly in the 1970s(6), and as an area of the mineralised trend
by prior operators, with grab samples of up to 2.66 U(3)O(8) and 0.72% Cu(7)
and a prior soil survey indicating enrichments in both uranium and copper(8).
Anomaly 16 also features a similar, although less intense, magnetic high to
the Duck Lake Target(7).

 

-      South Eastern Gravity Anomaly: Located in the extreme southeast of
the property, straddling the border with Lattitude Uranium, the South Eastern
Gravity Anomaly was first identified as a high-priority target for IOCG
mineralisation in a regional-scale gravity survey but was never followed up on
or tested(9).

 

-      South West Duck Lake Target: Lying along trend of the Duck Lake
and Anaomly 16 Targets, this target has a geophysical response of a magnetic
high/ offset gravity low, similar to Duck Lake, although offset to the west,
rather than east. Due to outcrop at the location, this target was identified
through hyperspectral imagery, with a strong response for alunite and a
moderate response for smectite and hypersthene. Alunite is an aluminium
potassium sulphate mineral commonly associated with alteration systems and the
weathering of sulphide minerals, and both smectite and hypersthene are
products of hydrothermal alteration and weathering. No historical work is
reported to have been carried out on this target.

 

-      Silas South West Target: This is located in the west of the Silas
property. It consists of a geophysical response from an area of moderately
high magnetic response and offset gravity low to the west to the west of the
magnetic high. Additionally, this target is down ice of a uraniferous boulder
field, 1.5 km to the east. The mapped geology of the target and that of the
uraniferous boulders are known to be similar, and thus, they may be sourced
from the Silas South West Target. This target has never received any recorded
systematic or modern exploration.

 

2024 Fieldwork Activities

In early September 2024, Power Metal Resources commissioned Mercator
Geological Services of Dartmouth, Nova Scotia, and Titjaluk Logistics of
Roddickton, Newfoundland and Labrador, to complete a helicopter-supported,
four-person combined radon, soil and biogeochemical sampling programme over
identified targets on the Drake Lake Property. No sampling was completed on
the Silas Property.

The field programme comprised prospecting and sample collection over the
following areas;

-      Duck Lake Target: sampling consisted of 310 biogeochemical
samples, 299 soil samples and 106 radon samples.

-      Anomaly 16 Target: including verifying historical results and
completing additional radon and biogeochemical sampling. This sampling will
provide a 'baseline' of assay results over areas of historically elevated soil
and grab sampling to compare with the other sampled areas. The sampling
consisted of 66 soil samples, 68 biogeochemical samples, and ten radon
samples.

-      South Eastern Gravity Anomaly: a total of 55 soil and 61
biogeochemical samples were collected from the north and south of an unnamed
lake below which the gravity anomaly is located.

Additionally, due to the programme being completed ahead of schedule, a very
small (19 samples) soil geochemical sampling programme was completed on the
South West Duck Lake Target.

The soil and biogeochemical samples have been sent for assay at the
Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon using an
industry-standard partial leach suite, which includes metals, rare earth
elements, uranium, and lead isotopes. Results are pending.

 

REFERENCES

1:             Katona, L., 2020, Geophysical signatures of IOCG
prospects in the Olympic Cu-Au Province, MESA Journal 92,
https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/MESAJ092026-037.pdf
(https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/MESAJ092026-037.pdf)

2 :             Murray, L., 2004, First Year Assessment Report, Licence
#9781M - 9782M - 9783M situate near Moran Lake, Labrador NTS-13K/10. 013K/0280

3:             Cook, B.J. 1980: Re-evaluation of geology and uranium
mineralization, C zone, Moran Lake property, Central Mineral Belt, Labrador.
Newfoundland and Labrador Geological Survey, Assessment File 13K/07/0274, 76
pages.

4:             Ryan, A.B.1981: Volcanism, sedimentation, plutonism and
Grenvillian deformation in the Helikian basins of central Labrador. In
Proterozoic Basins in Canada. Edited by F.H.A. Campbell. Geological Survey of
Canada. Paper 81-10, pages 361-378

5(:                 )Gilman, T.L., 2012, (Tenth Year)
Assessment Report of Prospecting and Geological Reconnaissance on Licenses
009389M and 016313M, Bruce River Property NTS 13K/07, 13 K/09 and 13K/10
Central Labrador

6:              Perry, J., 1979, Annual exploration report for 1978
with appendix 5-9 on the Moran and Seal Lake areas, Labrador, LAB/0437
(https://gis.geosurv.gov.nl.ca/geofilePDFS/Batch13/LAB_0437.pdf
(https://gis.geosurv.gov.nl.ca/geofilePDFS/Batch13/LAB_0437.pdf) )

7:              Buchan, C., 2008, 5th Year Assessment Report on
Sampling and Prospecting on the Croteau Property Central Mineral Belt,
Exploration Licenses 9415M, 013K_0321

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:              Satterfield, T., Tykajlo, R., 2003 (First Year)
Assessment Report of Airbourne Gravity and Magnetic Surveys on licenses 9387M,
9388M, 9390M and 9391M Bruce River Property of Monster Copper Resources Inc,
013K/0276

( )

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/Harry Davies-Ball                                    +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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