REG - Power Metal - Strategic Uranium Properties Staked - Athabasca

Power Metal ResourcesAnnouncement

02/02/2023 07:00

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RNS Number : 6592O  Power Metal Resources PLC  02 February 2023

2 February 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Basin - Strategic Uranium Properties Staked

Power Metal Acquires via Staking the Strategic Haresign Bay and Kernaghan
Uranium Properties

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update concerning its uranium property portfolio focused on the
Athabasca Basin area in Saskatchewan, Canada.

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

"The uranium acquisitions by staking announced today are a further leap
forward for Power Metal's strategic uranium interests in and surrounding the
prolific Athabasca Basin located in northern Saskatchewan, Canada.

The two new properties now secured are adjacent to and largely surrounded by
major uranium companies and they demonstrate significant uranium prospectivity
with geology considered by the Company to be analogous to major producing
mines and other uranium deposits within the Athabasca Basin.

Power Metal started the move to build a uranium exploration business in
September 2021 and we believe we are now in a particularly strong position.
Our intentions do not stop here, with plans to further expand our uranium
focused interests where suitable opportunities are identified.

Uranium has a strong following in capital markets and recently the spot
uranium price has moved again above USD$50/lb. With the world dynamic shifting
strongly in favour of nuclear power generation we believe that Power Metal
should continue this push to build its uranium exploration and development
business interests in the London financial markets."

HIGHLIGHTS:

§ All claims were acquired by direct mineral claim staking by the Power Metal
technical team. They were acquired during the most recent Mineral
Administration Registry Saskatchewan ("MARS") electronic registry system claim
reopening on 31 January 2023. The staking acquisitions represent some of the
most significant additions to the Company's uranium portfolio. Further
information on the staking process can be found in the further information
section below.

 

§ The newly acquired Haresign Bay uranium Property ("Haresign Bay") covers a
total area of 3,189.2-hectares (31.89km(2)) located 35km south of the
Athabasca Basin. Haresign Bay is surrounded by claims held by uranium focussed
companies F3 Uranium Corp, Baselode Energy Corp, CanAlaska Uranium Ltd and
Skyharbour Resources Ltd.

 

§ The newly acquired Kernaghan uranium Property ("Kernaghan") covers a total
area of 4,566.2-hectares (45.66km(2)) within the northeastern edge of the
Athabasca Basin. Kernaghan is bordered on three sides by claims held by
uranium focussed companies including Standard Uranium Ltd., IsoEnergy Ltd.,
and Purepoint Uranium Group Inc.

 

 

§ During the most recent claim reopening, Power Metal also staked an
additional 1,982-hectare (19.82km(2)) claim area bordering the western
extension of its Thibault Lake uranium Property (the "Extension").
Significantly, the Extension covers a historical showing which returned a
trenching result of 1.09% U(3)0(8) over 10.7m, greatly increasing the overall
prospectively of the extended Thibault Lake uranium Property. (2)

 

§ With the addition of the Kernaghan and Haresign Bay uranium properties, as
well as the additional staking at Thibault Lake, the Power Metal Athabasca
uranium portfolio now consists of fourteen properties, including two
conditional disposals(1), with a combined total area of 940km(2).

FURTHER INFORMATION

Mineral Claim Staking Process

The mineral claims constituting the Haresign Bay and Kernaghan Uranium
Properties as well as the Thibault Lake Extension were acquired directly
through the Mineral Administration Registry Saskatchewan ("MARS") electronic
registry system.

Where a previous claim owner is unable to satisfy the claim maintenance
requirements, that ground is reopened to third party staking at a set time
each month. Select reopening's are often highly competitive with many parties
attempting to acquire the newly available land.

The total cost of staking was CAD$5,842.34. The newly staked licences come
with a two-year term with no minimum spend requirement and which can then be
extended for subsequent years by spending a minimum of CAD$146,059 per annum.

The Haresign Bay Property

Haresign Bay is located 43km south of Cameco Corporation's Key Lake Uranium
Mine which is the third largest deposit within the Athabasca Basin - with an
average mineable grade of just over 2% U(3)O(8).(1) Haresign Bay is located
35km south of the Athabasca Basin, along the Key Lake trend, which is defined
by a cluster of northeast-southwest trending electromagnetic conductors which
extend to the northeast over the Key Lake Mine. The Key Lake trend is a
defining geophysical and geological trend within the Athabasca Basin, and
Haresign Bay represents a significant position held within this important
uranium-rich corridor.

The Upper Roberta Lake Target ("Upper Roberta Lake" or the "Target") is
located in the southwestern part of the Haresign Bay Property and is defined
by a gravity low anomaly which is coincident with elevated Radon(222)-in-lake
water results. This Target area is further intersected by multiple
electromagnetic conductors of part of the Key Lake Trend. Upper Roberta Lake
represents a highly compelling target for future work.

The Kernaghan Property

Kernaghan is located within the prolific Athabasca Basin approximately 13km
from the Basin's edge. Based on nearby borehole's drilled by Denison Mines
Corp., the sandstone-basement unconformity on the Property is expected to be
at around 100m depth.

The Kernaghan Property covers multiple anomalous Radon(222)-in-lake water
results which are oriented within a northeast-southwest trending belt. This
trend is coincident with a magnetic low feature. Kernaghan represents the
Company's third property which is located entirely within the Athabasca Basin.

Thibault Lake West Extension

The Extension covers an additional four Saskatchewan Mineral Deposit Index
("SMDI") points. These SMDI points cover multiple high-grade uranium showings
including a north trending zone of strong uranium mineralisation from which
historic trenching returned 10.7m of 1.09% U(3)0(8).(2) Several other
high-grade uranium showings are covered by the Extension including grab and/or
channel samples which returned 4.8%, 1.75%, 0.71%, and 0.66% U(3)0(8).(3,4)

Next Steps

The Company is preparing fact sheets which will include further information
and maps for newly acquired staking. These will be released to the market once
ready. Furthermore, detailed data rooms are being prepared.

URANIUM PROPERTIES - 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 Athabasca uranium portfolio.

The Power Metal Canada Uranium Property Map is available to view at the
following link:

https://www.powermetalresources.com/power-metal-canada-uranium-map/
(https://www.powermetalresources.com/power-metal-canada-uranium-map/)

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

 

 Project                         Licence ID      Area        Area

                                                 (Hectare)   (km(2))
 Clearwater Uranium Property     MC00015079      1,110       11.1
                                 MC00015083      563         5.63
                                 MC00015082      3,191       31.91
                                 MC00015151      760         7.6
                                 MC00015646      761         7.61
                                 MC00015658      1,541       15.41
 Tait Hill Uranium Property      MC00015078      1,576       15.76
                                 MC00015081      968         9.68
                                 MC00015153      1,530       15.3
                                 MC00015152      1,886       18.86
                                 MC00015647      725         7.25
                                 MC00015648      1,129       11.29
                                 MC00016158      3,242       32.42
 Thibault Lake Uranium Property  MC00015077      2,206       22.06
                                 MC00015659      2,195       21.95
                                 AC00018709      1,982       19.82
 Soaring Bay Uranium Property    MC00015080      1,255       12.55
                                 MC00015155      3,375       33.75
                                 MC00015874      748         7.48
                                 MC00015875      2,529       25.29
 Cook Lake Uranium Property      MC00015212      984         9.84
 E-12 Uranium Property(5)        MC00015213      1,323       13.23
 Reitenbach Uranium Property(6)  MC00015214      2,135       21.35
                                 MC00015474      1,235       12.35
                                 MC00015655      4,570       45.7
                                 MC00015656      5,322       53.22
                                 MC00015657      886         8.86
                                 MC00015824      528         5.28
                                 MC00016155      1,333       13.33
 Reindeer Lake                   MC00015522      3,336       33.36
 Porter Lake                     MC00015561      5,656       56.56
                                 MC00015562      5,198       51.98
 Old Woman Rapids                MC00015563      4,851       48.51
                                 MC00015564      5,063       50.63
                                 MC00015565      3,044       30.44
 Durrant Lake                    AC00018000      5,866       58.66
 Badger Lake                     MC00016253      1,671       16.71
 Haresign Bay                    AC00018692      3,189       31.89
 Kernaghan                       AC00018694      4,566       45.66
 Total Licence Holding Area                      93,998      939.98km(2)

 

NOTES AND REFERENCES

1:
https://www.cameco.com/businesses/uranium-operations/canada/mcarthur-river-key-lake

2:
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1535
(https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1535)

3:
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1536

4:
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1534
(https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1534)

5:                    The E-12 Property, currently included
as one of the 14 uranium portfolio properties, is subject to a conditional
disposal to Teathers Financial PLC for a consideration of £250,000. Work is
ongoing to complete that transaction. See Company announcement released on 4
November 2022.

6:                    The Reitenbach Property, currently
included as one of the 14 uranium portfolio properties, is subject to a
conditional disposal to Teathers Financial PLC for a consideration of
£360,000. Work is ongoing to complete that transaction. See Company
announcement released on 8 August 2022.

 

Glossary:

Electromagnetic Conductors: In the Athabasca Basin area, uranium
mineralisation is often associated with graphitic fault conductors within the
crystalline basement. Graphite and faults are more conductive than the
surrounding rocks, and thus offer a proven geophysical target for future
exploration.

Radon(222) anomaly: Radon-222 anomalism 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 be dissolved in
water, 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.

 

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.

 

 

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