REG - Power Metal - Uranium Exploration Update - Athabasca Basin

Power Metal ResourcesAnnouncement

20/12/2021 07:00

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RNS Number : 1180W  Power Metal Resources PLC  20 December 2021

20 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Exploration Update - Athabasca Basin

2021 Exploration Programme Delivers High-Grade Uranium Rock Samples up to
3.86% U(3)0(8) (38,600ppm)

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces its 2021 work programme results from three of its 100% owned
interests surrounding the Athabasca Basin in northern Saskatchewan, Canada.

Previously on 05/11/2021 the Power Metal announced that its Phase I work
programme was complete, and that additional ground surrounding the company's
Tait Hill Property was acquired. A link to the announcement can be found
below.

https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15201678
(https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15201678)

HIGHLIGHTS:

-    Phase I exploration conducted over three of the seven Athabasca
uranium properties, namely Tait Hill, Thibault Lake and Cleawater.

 

-     20 rock samples were collected for assay testing and the results
demonstrate high grade uranium with the highest grade of 38,600ppm or 3.86%
uranium oxide ("U(3)0(8)")(.)

 

-      Multiple targets have been idenfitied for follow up exploration
work in 2022.

 

Maps demonstrating the location of sample results across the three properties
may be viewed on the Company's website through the following links:

https://www.powermetalresources.com/tait-hill-phase-1-programme-results/
(https://www.powermetalresources.com/tait-hill-phase-1-programme-results/)

https://www.powermetalresources.com/thibaut-lake-phase-1-programme-results/
(https://www.powermetalresources.com/thibaut-lake-phase-1-programme-results/)

https://www.powermetalresources.com/clearwater-phase-1-programme-results/
(https://www.powermetalresources.com/clearwater-phase-1-programme-results/)

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

"The confirmation of high grade uranium through assay testing of rock samples
samples from the recent exploration programme is extremely positive and
demonstrates the value of the diligent review work undertaken when the
footprint was selected for staking earlier in the year.

There is considerable interest in the Athabasca uranium opportunity and Power
Metal has, in my view and as evidenced today, built a compelling uranium
exploration project portfolio in the area.

We remain of an acquisitive mindset with regard to uranium properties and are
currently reviewing additional Canadian and African uranium exploration
opportunities."

EXPLORATION PROGRAMME ADDITIONAL INFORMATION:

-     A total of 20 rock samples were collected as part of the Phase I
programme including eight (8) from Tait Hill, seven (7) from Thibaut Lake, and
five (5) from Clearwater. All samples were analysed at the Saskatchewan
Research Council laboratory in Saskatoon, Saskatchewan. Power Metal employed a
uranium-exploration analytical package which includes uranium, various
base/trace-metals, as well as a suite of rare-earth elements ("REEs").

 

-     At Tait Hill, four (4) of the Properties eighteen (18) Saskatchewan
Mineral Deposit Index point ("SMDI") uranium occurences were visited by
exploration crews. Several samples returned highly anomalous uranium
mineralisation including rock samples up to 4,700ppm (0.47% U(3)0(8)). The
rocks were collected along a northeast-southwest trending line of uranium-rich
boulders. Tait Lake which is centrally located within the Tait Hill Property
(see map), where 308,000kg of uranium with a insitu value of US$25.6 million
(c. US$28 million at US$42/lb uranium) was calculated by the Saskatchewan
Mining Development Corporation following a detailed lake-sediment drilling
programme completed in 1980, was not visited as part of this programme.(1) The
historic work programme was completed solely on Tait Lake and the calculated
resource is for Tait Lake and a few of the uranium-rich lakes immediately
surrounding Tait Lake, which are majority held within the current Tait Hill
Property.

 

-   Power Metal has also successfuly obtained a high-resolution magnetics,
electromagnetic ("EM") and radiometric airborne survey flown Terraquest Ltd.,
on behalf of Canalaska Uranium Ltd., over the entire Tait Hill Property In
2008 the 4,290 line-km survey was flown at 150m-line spacing and successfully
identified ten (10) radiometric anomalies at Tait Hill which were never
followed up on. In addition, several magnetic and EM anomalies and lineaments
were identified which will assist the Company is planning future work
programmes on the Tait Hill Property.

 

-    At Thibaut Lake, two (2) of the Properties six (6) SMDI uranium
occurences were visited by exploration crews. Several samples returned highly
anomalous uranium mineralisation including rock samples up to 38,600ppm (3.86%
U(3)0(8)), as well as five (5) of the seven (7) samples which assayed
>1,100ppm U(3)0(8). The extremely high-grade sample was strongly
mineralised with yellow carnotite and black pitchblende and displayed strong
hematite alteration. The result greatly exceeds any historic samples taken
within the area and represents a new exciting discovery for the Company.

 

-   At Clearwater, three (3) of the Properties fourteen (14) SMDI uranium
occurences were visited by exploration crews. Several samples returned
strongly anomalous uranium mineralisation including rock samples up to 770ppm
U(3)0(8), including all samples which returned greater than 200ppm U(3)0(8).

 

-   Other notable rare-earth element results include thorium (Th) up to
1150ppm and zirconium up to 1,860ppm from the Tait Hill Property, as well as
base-metal results including silver (Ag) up to 31.8ppm and lead (Pb) up to
8,320ppm from the Thibault Lake Property.

 

The Company is very pleased with the results obtained from the Phase I work
programme where only one day of prospecting was spent on each of the three
Properties. Several additional uranium occurrences have yet to be prospected
by Power Metal, and the data obtained during this programme, as well as
additional historic data acquired by the Company as part of the now completed
historic data compilation, will be crucial in allowing the Company to unlock
additional value from the Portfolio during the 2022 exploration season.

Table 1: 2021 Work Programme Rock Sample Assay Results

 

 Title   Property      U3O8 wt % *  U308 (ppm)
 149626  Tait Hill     0.47         4,700
 149627  Tait Hill     0.02         200
 149628  Tait Hill     0.007        70
 149629  Tait Hill     0.011        110
 149630  Tait Hill     0.024        240
 149631  Tait Hill     0.105        1,050
 149632  Tait Hill     0.017        170
 149633  Tait Hill     0.006        60
 149634  Thibaut Lake  0.04         400
 149635  Thibaut Lake  0.115        1,150
 149636  Thibaut Lake  0.003        30
 149637  Thibaut Lake  0.165        1,650
 149638  Thibaut Lake  0.122        1,220
 149639  Thibaut Lake  0.267        2,670
 149640  Thibaut Lake  3.86         38,600
 149641  Clearwater    0.038        380
 149642  Clearwater    0.023        230
 149643  Clearwater    0.043        430
 149644  Clearwater    0.065        650
 149645  Clearwater    0.077        770

* U(3)O(8) Assay by ICP, SRC Geoanalytical Laboratories, Saskatoon,
Saskatchewan,

 

Reference Notes:

1:           C. E. Roy and S. A. Earle, Saskatchewan Mineral
Development Corporation Exploration - Summer 1980, Grease River-Scott Lake
Project, CBS 5479, 5539, 5869 (74O09-0022). December, 1980

 

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 (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 results from on-site work programme.
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 Ditau Project               Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                         accelerated drilling targeting rare-earth elements and base metals

 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%              Kavango Option to acquire an interest in local project holding company.       Results from various work activities underway as part of the Kavango Option
                                                         Option fee payable through defined work programme
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill programme underway

 Wallal Gold/Copper Project  Australia  83.33%(1)        Passive seismic and 2D seismic processing work programme completed            Results awaited

(1) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Ltd shares to URE vendors

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