REG - Power Metal - Uranium Exploration Update - Athabasca Basin

Power Metal ResourcesAnnouncement

10/08/2022 07:30

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RNS Number : 5378V  Power Metal Resources PLC  10 August 2022

10 August 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Exploration Update - Athabasca Basin

2022 Phase I Field Programme Underway Targeting Clearwater, Thibault Lake and
Tait Hill 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 exploration update from its uranium property portfolio
surrounding the Athabasca Basin, Saskatchewan, Canada.

HIGHLIGHTS

-   Phase I work programme now underway at Clearwater, Tait Hill and Thibault
Lake properties, with a Phase II programme being prepared for the Soaring Bay
property.

 

-      Exploration team are prioritising the initial follow-up work on
the Thibault Lake property where the 2021 mapping and sampling programme
returned high grade uranium sample assays of up to 38,600 ppm or 3.86% uranium
oxide ("U(3)0(8)")

 

-     Programme will utilise a handheld gamma-ray field spectrometer for
real time radiometric analysis and mapping with anomalous samples collected
for assay at an accredited analytical laboratory.  Laboratory assays will
include testing for uranium, rare earth elements ("REE"), transition metals
and precious/base metals.

 

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

"The Athabasca uranium portfolio constitutes a priority exploration project
for Power Metal, and today's update demonstrates our commitment to getting on
with the exploration work.

This 2022 Phase I Field Programme now underway covers three Athabasca
properties: Clearwater; Thibault Lake; and Tait Hill. The planned work will
build on the positive findings of the 2021 fieldwork, providing more extensive
and in-depth results over each area property.

We have seen considerable interest in the Athabasca area, which we believe is
inspired by an extremely positive forward dynamic in the uranium sector. The
value of the ground held through our uranium properties is, in our view,
increasing considerably and this value will be further enhanced through the
current exploration work designed to underpin the uranium prospectivity.

With the commencement of this work, Power Metal now has three field-based
exploration programmes currently underway: the Athabasca Portfolio in Canada;
and the Molopo Farms Complex Project and Tati Project in Botswana."

 

2021 URANIUM EXPLORATION PROGRAMME BACKGROUND

Due to a short field season window available after the staking of the
Company's first seven uranium focused mineral properties, a single day of
prospecting was spent on each of the Clearwater, Tait Hill and Thibault Lake
uranium properties during October and November 2021. The results from the 2021
work programme were released on 20 December 2021 and can be found at the link
below:

https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15256838
(https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15256838)

2021 Programme Highlights

·    Despite minimal time being spent on each of the three properties,
significant uranium mineralisation was encountered including grab sample
results up to 38,600 ppm or 3.86% U(3)0(8) (uranium oxide) from the Thibault
Lake uranium Property.

 

·    In addition, to significant uranium mineralisation being encountered
on all three properties, other notable results including REE and transition
metal mineralisation in the form of thorium (Th) up to 1,150 ppm and zirconium
(Zr) up to 1,860 ppm were recorded from the Tait Hill uranium property, as
well as base-metal results including lead (Pb) up to 8,320 ppm recorded from
the Thibault Lake uranium property.

 

·    Several target areas, identified during the 2021 programme, were
designated for high priority follow up during the current work programme.

 

During the 2021-2022 winter, the Company conducted  thorough reviews of all
data available across the Athabasca focused portfolio. In addition, Dr Neil
Pendock was engaged by the Company to undertake a detailed hyperspectral data
analysis utilising Sentinel-2 satellite data on hydrogen and helium gas
reflectance. The results of this hyperspectral work programme were released on
12 July 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/uranium-targets-confirmed-athabasca-basin-canada/15537428
(https://www.londonstockexchange.com/news-article/POW/uranium-targets-confirmed-athabasca-basin-canada/15537428)

As a result of the work completed to date, the Company was able to identify
several new uranium exploration targets as well as further refine pre-existing
targets. The 2022 work programme which is now underway, has been designed to
further investigate several of these exciting targets. Additional 2022
programme details are discussed below.

2022 URANIUM EXPLORATION PROGRAMME FURTHER INFORMATION

·    Field teams with extensive Athabasca basin focused uranium
exploration experience have been engaged by the Company to undertake the Phase
I Field Programme. The teams will be based in Uranium City, Saskatchewan,
which is roughly equidistant from several of Power Metal's uranium properties,
which will allow for rapid and efficient mobilisation to site.

 

·    The planned Phase I field programme will involve field teams spending
three days on each of the three properties, completing transverses over
pre-defined targets utilising a handheld gamma-ray spectrometer (to detect
radioactivity), mapping and collection of rock samples for analysis by an
accredited laboratory. Daily correspondence will be maintained between the
field teams and the company's exploration manager, ensuring efficient and
targeted exploration throughout the entire campaign. A Phase II work programme
is scheduled for later in the month at Soaring Bay and will be similar in
nature to this Phase I exploration, but with the addition of Radon surveying.

 

·    Following completion of the fieldwork, all information will be
integrated and categorised into the in-house data rooms. Samples collected
will be analysed by Saskatchewan Research Council laboratories for
multi-element analysis including uranium, REE, transition and base metals.

The Company's Phase I and Phase II work programmes are intended to further
refine various uranium focused exploration targets, with the intention of
eventually progressing the highest priority targets to a drill-ready stage.

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.

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
 Thibaut Lake Uranium Property   MC00015077      2,206       22.06
                                 MC00015659      2,195       21.95
 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           MC00015213      1,323       13.23
 Reitenbach Uranium Property(#)  MC00015214      2,135       21.35
                                 MC00015474      1,235       12.35
                                 MC00015655      4,570       45.7
                                 MC00015656      5,322       53.22
                                 MC00015657      856         8.56
                                 MC00015824      528         5.28
 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
 Total Licence Holding Area                      72,152      721 km(2)

* Property acquisition announced on 25 July 2022 - licence transfers in
progress

( #  )Reitenbach Property conditionally disposed to Teathers Financial PLC
as announced 8 August 2022

 

 

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

Exploration work programmes may also be underway within planned IPO vehicles
where Power Metal has a material interest the findings from which will be
released on their respective websites, with simultaneous updates through Power
Metal regulatory announcements where required:

www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

www.goldenmetalresources.com (http://www.goldenmetalresources.com)

www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

For planned IPO vehicle New Ballarat Gold Corporation PLC (NBCG) a new website
is currently in development which will be found at www.newballaratgold.com .
In the interim further information in respect of NBGC can be found at
https://www.powermetalresources.com/project/victoria-goldfields/
(https://www.powermetalresources.com/project/victoria-goldfields/) .

Power Metal also holds a material investment in Kavango Resources plc with
exploration updates available through their regulatory announcements and on
their website:

www.kavangoresources.com (http://www.kavangoresources.com)

 

 Project                Location  Current          Work Completed or Underway                                                     Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Hyperspectral data analysis conducted across 7 properties. Updating to 9 data  Finalise review of hyperspectral data from 3 properties.  Results from summer
                                                   rooms for third party review. Exploration programme commenced across           exploration programme across 3 properties and planning for exploration on
                                                   Clearwater, Tait Hill & Thibault Lake.                                         Soaring Bay property.
 Authier North Lithium  Canada    Earn-in to 100%  Property Evaluation Report completed.                                          Update covering exploration plans for target areas identified during the
                                                                                                                                  Evaluation.
 Molopo Farms           Botswana  53%(#)           Comprehensive data review complete and establishment of data room for third    Finalise drill programme targets, select drill contractor and launch drill
                                                   party review. Geophysics programme underway.                                   programme.
 Tati Project           Botswana  100%             Site visit with mapping of gold workings and mine dumps.                       Exploration planning underway including further mapping, sampling and launch
                                                                                                                                  of an RC drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

 

 

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