REG - Power Metal Res. - Uranium JV: Tait Hill Exploration Update

Power Metal ResourcesAnnouncement

14/02/2025 07:15

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RNS Number : 0858X  Power Metal Resources PLC  14 February 2025

14 February 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Joint Venture: Tait Hill Exploration Update

Significant Intrusion-Related Uranium Target Identified at Tait Hill Property

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 Tait Hill Uranium Property ("Tait Hill" or the
"Property"). The update concerns work undertaken by Fermi Exploration
("Fermi") the uranium-focused joint venture (the "Joint Venture" or "JV") with
UCAM Ltd ("UCAM" or the "Investor") comprising Power Metal's portfolio of
uranium licences, of which Tait Hill is a constituent.

Highlights

·    Sampling results have confirmed the Antler Zone, a well-defined 1 km
x 500 m target, initially identified from historical radiometric and magnetic
geophysical survey data.

 

·    Geochemical and radon gas results show potential for
intrusion-related uranium mineralisation at the Antler Zone, including a 700 m
trend of key indicators including radiometric decay ratios and anomalously
high uranium, thorium, and rare earth element concentrations. Radon-in-water
anomalies from three nearby lakes, support a proximal uranium source.

 

·    Rock samples from the Antler Zone returned the Property's highest
uranium values to date, including 1.68% U in a pegmatite.

 

·    Northwestern Target area, located 7 km north of the Antler Zone,
shows anomalous radon levels, high (206/204)Pb ratios, and elevated uranium in
soil samples, marking it as another promising intrusive-style uranium target
on the Tait Hill Property.

 

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

"It is very pleasing to be able to report more progress on our well-funded
exploration plan. Jack and his team are doing fantastic work establishing
drill targets, which, weather permitting, we hope to get started on over the
next few months. I look forward to being able to update shareholders further
as these high-impact exploration programmes start to take shape."

 

Technical Summary

Power Metal Resources commenced the systematic exploration of the Tait Hill
Property in 2023(1). Prior to that date the area had only seen limited
fieldwork in 2008, where samples returned up to 1,346 ppm uranium(4), and
historical magnetic, radiometric and electromagnetic geophysical surveys. The
initial programme involved widely spaced soil and radon sampling, which
identified prospectivity for intrusion-related uranium mineralisation,
specifically at the Mullis Lake Northern Target-now renamed the Antler Zone.

Encouraged by the 2023 results, the Power Metal technical team designed a more
detailed sampling campaign over the Antler Zone to better define the area of
interest. This campaign was undertaken during 2024, prior to the formation of
the Fermi Joint Venture. Work included biogeochemical sampling and testing
with an expanded suite of elements and lead isotopes. Additional sampling was
also conducted at the Mullis Lake 'B' Target and at a radiometric target in
the north of the Property (the Northwestern Target), which shares a similar
geological setting with the Antler Zone and is located near a major dyke.

2024 Sampling Programme Details:

·    Antler Zone: 119 soil samples, 41 biogeochemical samples (White Birch
leaves/tips), 12 rock grab samples, and 24 radon-in-water samples.

·    Mullis Lake Eastern Target: 57 soil samples.

·    Northwestern Target: 43 soil samples and 49 radon samples.

This helicopter-supported sampling programme was executed by RadonEx Ltd under
the direction of the Power Metal technical team.

Overview of the 'Antler Zone' and Historical Exploration

Historical radiometric geophysical data(2) shows elevated uranium levels and a
high uranium-thorium ratio in the Antler Zone measuring approximately 1 km by
500 m (see Figure 1). A structural interpretation by the Fermi utilising the
historical magnetic survey data aligns the historical radiometric anomaly with
a large geological fold and a shear structure along the edge of a significant
intrusive body (2,3). These features provide potential structural traps for
mineralisation and enhance the Antler Zone's prospectivity for hosting an
intrusion-related uranium deposit.

Antler Zone 2024 Exploration Results

Soil sampling (Figure 1) revealed a 700-metre trend of elevated radiometric
lead isotope ((206/204)Pb) ratios (with six samples returning a ratio >50),
supported by high lead isotope ratios in overlying biogeochemical samples
(three samples ratio >50). The (206/204)Pb ratio measures the proportion of
uranium-derived lead ((206)Pb) versus non-radiogenic "primordial" lead
((204)Pb), which has no relationship with the decay of uranium. Ratios >40
are considered very high(5 6), indicating significant uranium-derived lead.
Combining soil and biogeochemical methods enhances Fermi's confidence in the
uranium potential of the area due to the differing mobility of lead and
uranium in the ground and water.

Uranium levels, alongside elevated thorium and rare earth elements ("REE") in
the Antler Zone are notably higher than elsewhere at Tait Hill. Elevated
uranium, thorium and REE levels are key indicators for the intrusion-related
uranium deposit style.

Radon-in-water sampling (Figure 2) was tested as a third vector for uranium
mineralisation. Water samples were analysed for ionising radiation, showing
intense, localised anomalies in three lakes near the Antler Zone, suggesting a
nearby uranium source. Radon's short half-life (3.8 days) necessitated prompt
analysis, and thus they were analysed in the field camp.

Additionally, twelve rock grab sample assays from the Antler Zone recorded the
Property's highest uranium results to date (Figure 3), including a pegmatite
sample with 16,800 ppm (1.68%) uranium.

 

Figure 1: Location of the Antler Zone, radiometric and magnetic geophysical
features, and the (206/204)Pb ratio in soil.

 

Figure 2: Location of the Antler Zone, and Radon Iin Water Results

 

 

Figure 3: Location of the Antler Zone, radiometric and magnetic geophysical
features, and the 206/204 Pb ratio and uranium in biogeochemical samples.
Additionally, the location of uraniferous grab samples.

 

Other Targets on the Tait Hill Property

Northwestern Target:

A combined radon and 300m wide soil sampling grid on a 100 m spacing,
conducted over the Northwestern Target, which is a named target area located
approximately 7 km north of the Antler Zone, identified anomalous radon levels
in the southwest of the grid, alongside elevated (206/204)Pb ratios (up to a
value of 56). This area, sampled in 2021, returned rock samples with up to 890
ppm uranium. In the northeast of the grid, near potentially radioactive dykes,
uranium levels are also elevated but paired with high (though not anomalous)
(206/204)Pb ratios, pointing to a local uranium source. These findings
highlight the Northwestern Target as a promising intrusive-style uranium
prospect within the Tait Hill Property.

Mullis Lake Eastern Area:

Situated 2 km east of the Antler Zone, this area was first tested in 2023 and
in 2024 resampled on a tighter (100m) grid. Results were generally subdued,
though elevated (206/204)Pb ratios and uranium levels were detected near a
known airborne radiometric anomaly and elevated radon readings from 2023.

 

Intrusion-Related Uranium Deposits

Intrusion-Related Uranium deposits are linked to intrusive igneous rocks like
alaskite, granite, and syenite. Uranium concentrations typically range from
0.01% (100 ppm U) to 0.6% U, with deposits containing anywhere from a few
hundred to upwards of 100,000 tonnes of uranium(7).

Intrusion-related deposits are typically found at the edges of granitic
intrusions, where they contact the surrounding "country rocks". Structural
geology plays a critical role, as dilation zones-such as folds or shear
structures-often control the distribution of uranium mineralisation(7), making
them key exploration targets.

Unlike the high-grade unconformity-related deposits of the Athabasca Basin,
intrusion-related deposits are generally lower grade but significantly larger
in scale.

 

GLOSSARY

 Term                           Description
 (206/204)Pb Ratio              A measure of the ratio of uranium-derived lead ((206)Pb) to non-radiogenic
                 "primordial" lead ((204)Pb). High ratios may suggest uranium mineralisation.
 Airborne Radiometric Anomaly   An area identified from aircraft surveys as having higher-than-normal
                 radiation levels, often indicating uranium or other radioactive minerals.
 Biogeochemical Sampling        Analysing plants (e.g., leaves) to detect chemical elements in the soil below
                 can indicate the presence of minerals like uranium.
 Country Rocks                  The pre-existing rocks surrounding an intrusion.
 Dilation Zones                 Areas in rocks that have stretched or opened up, creating spaces where magma
                 can be intruded into, often dilation zones are associated with economical
                 mineralisation in deposits associated with intrusions.
 Dyke                           A vertical body of rock that cuts through existing rock layers.
 Fractionated Intrusive System  A geological process where molten rock cools and separates into different
                 minerals, often concentrating valuable elements like uranium and rare earth
                 elements.
 Gamma-Ray Spectrometry         A tool used to measure the energy of gamma rays emitted by rocks, helping
                 identify uranium and other radioactive elements.
 Half-Life (of Radon)           The time it takes for half of a radioactive substance (e.g., radon) to decay.
                 Radon's half-life is 3.8 days.
 Intrusive Igneous Rocks        Rocks formed from magma that cooled below the Earth's surface, often
                 associated with uranium deposits. Examples include granite, diorite and
                 syenite.
 Ionising Radiation             Radiation with enough energy to remove tightly bound electrons from atoms,
                 often emitted by radioactive materials like uranium, thorium and radon.
 Magnetic Surveys               A technique used to map variations in the Earth's magnetic field caused by
                 different rock types, helping identify geological structures.
 Pegmatite                      A coarse-grained igneous rock that is formed from a fractionated melt in the
                 final stages of a body of magma cooling
 Radiometric Surveys            A method of exploration that measures natural radiation (e.g., gamma rays)
                 emitted by rocks to identify areas with elevated uranium, thorium, or
                 potassium.
 Structural Traps               Geological features (e.g., folds, faults) that can concentrate minerals like
                 uranium by creating physical barriers or pathways for fluid flow.
 Trace Element Analysis         A scientific technique used to measure and study very small concentrations of
                 elements not necessarily related to the target mineral within a sample. These
                 elements, while present in minute amounts, can provide critical insights into
                 the sample's origin, formation processes, and potential economic value. In
                 geology, it is commonly used to identify indicators of mineralisation, such as
                 uranium or rare earth elements, and to understand the history and composition
                 of rocks and minerals.
 Uranium-Thorium Ratio          A comparison of uranium and thorium concentrations is often used to identify
                 uranium-rich areas.

 

 

 

REFERENCES

(1)
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/wv4250w
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/wv4250w)

(2) Terraquest Airborne Surveys Ltd. 2008, Aeromagnetic Survey Project B-239

(3) Fission 3.0, 2016, Assessment Report MAW1857 2015 Airborne Magnetic Survey
and Prospecting on The Perron Lake Property, MAW01857

(4) Uranez Exploration and Mining Ltd, 1979, Assessment Report on Claim Blocks
CBS 4911, 4912, 4913, 4914, 4915 Grease River Project, Northern Saskatchewan.
74O09-0019

(5) Abzalov, M.Z., 2021, Geochemical exploration for buried sandstone-hosted
uranium mineralisation using mobile U and Pb isotopes: case study of the REB
deposit, Great Divide Basin, Wyoming, Geochemistry: Exploration, Environment,
Analysis, Volume 21

(6) Quirt, D.,Benedicto, A., 2020, Lead Isotopes in Exploration for
Basement-Hosted Structurally Controlled Unconformity-Related Uranium
Deposits: Kiggavik Project (Nunavut, Canada), Minerals10(6), 512;

(7 (https://doi.org/10.3390/min10060512%20%0d7) ) International Atomic Energy
Agency, 2020, Descriptive Uranium Deposit and Mineral System Models.

 

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.

 

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