REG - Power Metal - Soaring Bay Uranium Property Update - Canada

Power Metal ResourcesAnnouncement

31/03/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220331:nRSe6768Ga&default-theme=true

RNS Number : 6768G  Power Metal Resources PLC  31 March 2022

31 March 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Soaring Bay Uranium Property - Canada

Highlights of Historical Data Compilation Over the Soaring Bay Uranium
Property south of the Athabasca Basin; Further Prospective Land Staked.

 

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an update on its Soaring Bay Uranium Property ("Soaring Bay" or the
"Property"). Soaring Bay is part of the larger uranium portfolio that includes
seven 100% owned interests (Table 1) now covering an area of 450.01km(2)
(45,001 hectares) located in northern Saskatchewan, Canada.

Highlights Include:

·    Soaring Bay footprint increased by 71% to 79.07km(2) following
additional staking of adjacent uranium-prospective ground.

 

·    Anomalous Radon-222 soil gas results identified over 700m in strike
length extending into new staked ground.

 

·    Historical review has identified multiple occurrences of radioactive
pegmatites with scintillometer results up to 15,000 counts per second ("CPS").

 

·    Increased area also includes two highly anomalous U-in-lake results,
underlining the properties' general prospectivity.

 

·    Government data records four uranium occurrences on the Property with
results returning 0.11 - 0.8% Uranium ("U").

A map highlighting results from the historical data compilation completed over
the Soaring Bay Property, and further prospective ground recently staked can
be found below at the following link:

https://www.powermetalresources.com/soaring-bay-property-overview/
(https://www.powermetalresources.com/soaring-bay-property-overview/)

Soaring Bay Uranium Property Overview

-      The Soaring Bay Property is located in northern Saskatchewan,
Canada, approximately 100 km south of the Athabasca Basin. Saskatchewan ranked
third in the most recent 2020 Fraser Institute Investment Attractiveness Index
rankings of global mining jurisdictions.(1) Following a review of the
historical information compiled by Power Metal, further prospectivity outside
of the Property claim boundary was identified and as a result, an extra
32.77km(2) (3,277-hectares) has been staked bringing the Property's total land
holding to 79.07km(2) (7,907-hectares).

 

-      Historical work on the Property, collated by Power Metal, has
identified anomalous Radon-222 results located along a prominent 700m long
structural lineament, multiple anomalous and generally elevated U-in-lake
sediment results, and highly elevated scintillometer results (up to 15,000
CPS) from multiple outcrop occurrences. The licence area of Soaring Bay was
extended to capitalise on these various features, further increasing overall
prospectivity. Radon-222 ((222)Rn)  is a naturally occurring radioactive gas.

 

-      The Property is centred around four Saskatchewan Mineral Deposit
Index ("SMDI") uranium occurrences which were discovered during historical
small-scale excavations on the Property. Samples of up to 0.92 % U3O8 (0.8% U)
were recovered from historical trenches. In addition, two SMDI copper
occurrences are present within the Property.

 

-      The Soaring Bay Uranium Property is considered prospective for
intrusive and pegmatite-hosted uranium mineralisation, and, although being
largely untested, rare-earth element mineralisation.

 

Paul Johnson, Chief Executive Officer of Power Metal Resources plc,
commented:

"Work on our uranium interests has accelerated with further support in-house
to take this important area of our business forward.

We have seven properties surrounding the Athabasca Basin in Saskatchewan
Canada and, following technical review of our data compilation, the Soaring
Bay Uranium Property has delivered an exciting set of results.

The 12km structural feature identified, with anomalous soil gas Radon is a
great find.  This included 700m of anomalous readings some of which fell
outside of the Property footprint.  Fortunately, we were able to secure the
additional ground, which remained un-staked, to cover this highly anomalous
area in full.

Work continues at pace on our Athabasca uranium interests and further updates
are expected in the near future."

FURTHER TECHNICAL INFORMATION

Power Metal recently completed an in-depth historical data compilation across
its entire uranium Portfolio surrounding the prolific Athabasca Basin,
Saskatchewan, and now possesses a robust fully-digitised database covering all
historical work programmes completed across the various Properties, including
the Soaring Bay Uranium Property.

A total of 5 historical reports were digitised from work programmes covering
at least some part of the Soaring Bay. These date from 1970-1980 and include
ground exploration, trenching and lake sediment sampling, with no exploration
occurring within the last 40 years.

Soaring Bay Compilation Highlights

-      Anomalous Radon-222 soil gas readings ranging between 33 and 244
CPS (area background average: ~1-2 CPS) located along a prominent 12km long
northwest-southeast oriented fault. including highlight results of 70, 85 and
244 CPS, representing 96(th) percentile compared to other structural features
analysed locally.(2) The anomalous results (>96(th) percentile) extend for
a combined 700m along the 12 km long structural feature; the expanded licence
has increased Power Metal's holding of this structural feature from 1.6 km to
5.6 km.

 

-      Radon-222 anomalies can be an important indicator for uranium
mineralisation as Radon-222 is a daughter product of the uranium-235 decay
chain.  As a naturally occurring radioactive gas it can migrate to the
surface and concentrate within faults, providing a possible vector towards
sites of uranium mineralisation. Due to Radon-222's short half-life (3.8 days)
occurrences of strong radon anomalism commonly suggest a local source to the
causative uranium mineralisation. The 3276.8-hectare extension staked by Power
Metal encompasses the entire 12 km long fault and all reported anomalous
elevated Radon-222 soil gas results are concentrated over the 700m strike
length.

 

-      The Property covers four Geological Survey of Canada (GSC) lake
sediment results. With respect to regional data, all are elevated (>80(th)
percentile), and two are considered highly anomalous 37 ppm (98.5(th)
percentile) and 69 ppm U (99.5(th) percentile). These two anomalous values
were covered by the new staking, further underlining the prospectivity of the
expanded licences.

 

-      Historical geological mapping, trenching and prospecting has
highlighted the presence of multiple radioactive outcrop occurrences over the
Property. In the southwest, a pegmatite returned a reading of up to 7,000 CPS,
with other occurrences of 5,000 CPS located within close proximity.(2) In the
west of the Property, an isolated pegmatite yielded values of up to 15,000 CPS
(2), which was acquired through the 3,276.8-hectare extension staked by Power
Metal. In addition, the SMDI records four uranium occurrences on the Property
with results ranging from 1,500 to 10,000 CPS, and 0.14 to 0.92 % U(3)O(8)
(0.11 - 0.8% U).(3) Previous work has also suggested that the pegmatite
occurrences may also be prospective for rare-earth element (REE) and
molybdenum (Mo) in addition to uranium mineralisation.(2)

 

-      A historical airborne radiometric survey identified several
elevated radiometric readings (between 400 and 900 CPS) across the
Property.(2) These anomalies are coincident with the identified 12km long
structural feature and the four previously identified SMDI uranium
occurrences.

 

Uranium Property 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 Saskatchewan uranium portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

 

 Project                        Licence ID      Area

                                                (Hectare)
 Clearwater Uranium Property    MC00015079      1,110
                                MC00015083      563
                                MC00015082      3,191
                                MC00015151      760
                                MC00015646      761
                                MC00015658      1,541
 Tait Hill Uranium Property     MC00015078      1,576
                                MC00015081      968
                                MC00015153      1,530
                                MC00015152      1,886
                                MC00015647      725
                                MC00015648      1,129
 Thibaut Lake Uranium Property  MC00015077      2,206
                                MC00015659      2,195
 Soaring Bay Uranium Property   MC00015080      1,255
                                MC00015155      3,375
                                MC00015874      748
                                MC00015875      2,529
 Cook Lake Uranium Property     MC00015212      984
 E-12 Uranium Property          MC00015213      1,323
 Reitenbach Uranium Property    MC00015214      2,135
                                MC00015474      1,235
                                MC00015655      4,570
                                MC00015656      5,322
                                MC00015657      856
                                MC00015824      528
 Total Licence Holding Area                     45,001

 

*Bold text refers to ground acquired since the most recent acquisition and
expansions announced by the Company on 24 March 2022

 

GLOSSARY

Counts Per Second: Measurement of the amount of ionising radiation. with each
'Count' being ionising radiation entering a Scintillometer. Higher readings
are generally indicative of radioactive material within the sample being
tested.  Natural background radiation varies depending on regional geology,
or other radioactive sources, but is typically between 2 - 10 CPS.

Reference Notes:

(1)
https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf

(2 )Sawyer D.A. (Great Plains Development Company of Canada Ltd) Marling Oil
Corporation): Compilation of Field Investigation on G.P. #10 (74EB03-0001)

(3) https://applications.saskatchewan.ca/mineral-deposit-index

 

COMPETENT 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 Competent 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
 Paul Johnson (Chief Executive Officer)                                          +44 (0) 7766 465 617

 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

 

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 distributions of assets.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 Project                Location   POW %            Work Completed or Underway                                                       Results Awaited

 Alamo Gold Project     USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                         Field and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                       Interpretation results from 2 of 7 properties.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential             Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 Kalahari Copper Belt   Botswana   50%              Exploration programme underway across the South Ghanzi Project and further       Field programme findings and defined drill targets for near term drilling.
                                                    exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                    licence areas
 Molopo Farms           Botswana   53%              Review of recent exploration findings.                                           Determine next exploration steps and action plan.
 Tati Gold/Nickel       Botswana   100%             Reverse circulation drill programme completed                                    Receipt & review of laboratory assay results.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                                Receipt & review of laboratory assay results.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                                 Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  83.33%           Wallal passive seismic and 2D seismic processing work programme completed.       Findings from multiple work programmes including final approvals and

                                                                                preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills & Braeside
                                                    West projects.

 Selta Project          Australia  83.33%           Field reconnaissance work now underway, including mapping and sampling.          Field updates.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCKBLFXLXLBBBE