REG - Power Metal - Uranium Portfolio Update – Athabasca Basin Canada

Power Metal ResourcesAnnouncement

24/03/2022 07:01

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RNS Number : 8191F  Power Metal Resources PLC  24 March 2022

24 March 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Portfolio Update - Athabasca Basin Canada

Extensive Uranium Prospectivity Identified at Cook Lake and E-12 Uranium
Properties

Commissioning of NI 43-101 Technical Report at Reitenbach Property

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a uranium portfolio update from its properties surrounding the
Athabasca Basin in Saskatchewan, Canada.

Through its wholly owned Canadian operating companies Power Metal holds seven
100% owned uranium focused properties (see Table 1) covering an area of 417.24
km(2) (41,724 hectares).

 

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

"Power Metal recently retained a UK-based geological consultant with extensive
Athabasca Basin experience to help push forward the Company's various
initiatives and projects within the exciting uranium space. The consultant
previously completed a M.Sc. thesis from the University of Ottawa where they
researched the geochemistry, alteration, and structural geology of one of the
many world-class unconformity-related uranium deposits located within the
Athabasca Basin.

We have been able to accelerate our Athabasca technical review work and have
now completed  the technical review of historical data for four of our seven
Athabasca properties.  All four properties show considerable uranium
prospectivity which is notable.

At Reitenbach, we have decided to move expeditiously into the production of a
NI 43-101 technical report, which is an important step should we wish to
utilise the property within a corporate transaction.

We see considerable value within our uranium interests, and through a
combination of ground exploration, technical review and corporate activities
we intend to maximise that value."

 

Reitenbach Uranium Property

-      Power Metal has engaged Dahrouge Geological Consulting Ltd., out
of Edmonton, Alberta, to undertake a National Instrument 43-101 compliant
report on the 100% owned Reitenbach uranium Property.

 

-      Commissioning, and completion of the report will better position
Power Metal to enable potential commercial transactions with the Reitenbach
Property in the future.

Cook Lake Property Overview

-      The Cook Lake Property ("Cook Lake") covers a total of 980
hectares (c. 9.8 km(2)) located in north-eastern Saskatchewan, Canada. It is
located less than 50 km southeast from the Athabasca Basin edge, within the
prospective Wollaston Domain - a historically underexplored geological belt.
Saskatchewan ranked third in the most recent 2020 Fraser Institute Investment
Attractiveness Index rankings of global mining jurisdictions.(1)

 

-      Cook Lake is centred around six Saskatchewan Mineral Deposit Index
("SMDI") uranium occurrences. Of these, four are boulder uranium occurrences
with reported uranium results of up to 1% to 3% Uranium (U),(2) and a further
two outcrop uranium occurrences are also present within the Property.

 

-      Historical work at Cook Lake, collated by Power Metal, has
identified elevated U-in-lake sediment results, extensive uraniferous boulder
fields, multiple instances of elevated uranium values in soils coincident with
elevated scintillometer readings and prospective lithologies without outcrop.
The encouraging historical results compiled will help guide Power Metal as it
plans for future work programmes on the Property.

 

-      Cook Lake is considered by the Company to be prospective for
basement-hosted unconformity related, as well as intrusive and
pegmatite-hosted uranium mineralisation.

 

E-12 Property Overview

-      The E-12 Property ("E-12") covers a total of 1,300 hectares (c. 13
km(2)) and is located 58 km to the west of the Cook Lake Property. E-12 is
less than 20 km from the Athabasca Basin edge.

 

-      The Saskatchewan 905 Provincial Highway passes through the
property, allowing for easy and efficient access for exploration crews during
future work programmes.

 

-      E-12 is centred around two SMDI occurrences, including boulder
results up to 0.17% U (1,700ppm U). Historical work has highlighted elevated
U-in-lake sediment results within the northern part of the property, as well
as extensive uraniferous boulder fields coincident with elevated scintillator
readings within nearby soils and shallow gravels.

 

-      E-12 is considered by the Company to be prospective for
basement-hosted unconformity related, as well as intrusive and
pegmatite-hosted, uranium mineralisation.

 

COMPILATION TECHNICAL INFORMATION

Power Metal recently completed in-depth historical data compilation across its
entire uranium property portfolio surrounding the prolific Athabasca Basin,
Saskatchewan, creating a robust fully-digitised database covering all
historical work programmes completed across the various properties, including
the Cook Lake Property.

A total of 9 historical reports were digitised from work programmes covering
at least some part of the Cook Lake Property. These cover all the documented
exploration works relating to the Cook Lake, undertaken between 1969 and 1988,
the last time any known work was carried out.

The E-12 Property is similarly underexplored, being the subject of 11 work
programmes between 1964 and 1979, with only two minor exploration programmes
completed in 1993 and 2011.

Cook Lake Property Data Compilation

A map highlighting some of the results from the historical data compilation
completed on the Cook Lake Property can be found below at the following links:

https://www.powermetalresources.com/cook-lake-property-overview-map/
(https://www.powermetalresources.com/cook-lake-property-overview-map/)

-      Power Metal has identified 43 northeast-southwest oriented
uranium-rich boulder trains with elevated scintillator readings (>1,000
counts-per-second ("CPS")) within the Cook Lake Property. This NE-SW
orientation direction is consistent with the general direction of ice movement
within the region (SW). A SMDI point on the Cook Lake Property highlighted a
significant historical boulder result between 1%-3% U (10,000ppm - 30,000ppm
U) alongside elevated thorium (Th) and molybdenum (Mo) values, located in the
northern part of the Property.(2) Historical reports have highlighted the
presence of a boulder which assayed 0.6% U (6,000ppm U), located in the
eastern part of Cook Lake.(3) Significantly, historical prospecting
demonstrates that the boulders are composed of lithologies that have been
identified within outcrops on the Cook Lake Property, suggesting the boulders
could be derived from, or local to Cook Lake.

 

-      Marling Oil Corporation (1980) defined numerous areas of at Cook
Lake with elevated U-in-soil values that were coincident with elevated
scintillometer readings (>100 CPS) in soils potentially due to radioactive
shallowly buried gravels and boulders.(3) These locations are coincident with
extensive boulder trains identified at Cook Lake and suggest that the
surficial expression of mineralisation is widespread and potentially local. In
addition, two instances of boulder fields with elevated scintillometer
readings (>250 CPS) in the north of Cook Lake have been identified(3).

 

-      Historical radiometric surveys have highlighted several elevated
airborne radiometric results across Cook Lake.  Many of these are coincident
with interpreted electro-magnetic ("EM") geophysical conductors, which are
commonly associated with unconformity related uranium deposits within the
Athabasca Basin.

 

-      A review of historical work has identified two promising outcrop
occurrences; These include a pegmatite which assayed 640ppm (0.06%) U and
frost heaves of felsic metasediments, which contained radioactive pegmatitic
veins.

 

-      A total of 5 historical lake sediment results were digitised
within the Cook Lake Property, with one result >90(th) percentile (14.2ppm
U), and one >95(th) Percentile (25.6ppm U) compared to regional lake
sediment data.

 

E-12 Property Compilation

A map highlighting some of the results from the historical data compilation
completed on the E-12 Property can be found below at the following links:

https://www.powermetalresources.com/e-12-property-overview-map/
(https://www.powermetalresources.com/e-12-property-overview-map/)

-      Power Metal has identified a 36 uranium-rich boulder trains,
trending in a northeast-southwest direction, within the E-12 Property. Seven
elevated boulders trains (>1,000 CPS) are located within the northern part
of the E-12 Property, including localised, anomalously enriched boulders with
scintillator results up to 8,000 CPS (>95(th) percentile of regional data).

 

-      L.A. Bayrock (1980) defined numerous areas on E-12 with elevated
scintillometer readings (>250 CPS), these locations are close to the
uraniferous boulder trains identified by Power Metal.(5)

 

-      Historical geophysical surveys have highlighted multiple elevated
airborne radiometric anomalies localised within the northern and central parts
of the E-12 Property.(4)  In addition, E-12 hosts multiple EM conductors,
which are commonly associated with unconformity related uranium deposits
within the Athabasca Basin.

The Company continues to uncover exciting historical results from its uranium
portfolio within Saskatchewan, Canada. These results, and the fully digitised
dataset now held by Power Metal, continue to add value to the portfolio.
Additional news releases highlighting these findings will be released to the
market over the coming weeks and months as and when they become available.

Uranium Property Holding Structure

Power Metal has a wholly owned 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 - Hectares
 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  1129
 Thibaut Lake Uranium Property  MC00015077  2,206
                                MC00015659  2,195
 Soaring Bay Uranium Property   MC00015080  1,255
                                MC00015155  3,375
 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
                                AC00017691  528
 Total Land Holdings                        41,724

 

GLOSSARY

Athabasca Basin - Is a major sandstone basin located in northern Saskatchewan,
Canada, with a surface area of almost 100,000 km(2).  The Athabasca Basin is
the world's premier uranium district, and the worlds leading source of
high-grade uranium. Uranium mineralisation has historically been identified
at, or close to the contact between a thick unit of sandstone that overlay the
crystalline basement rocks known as the Athabasca Basin edge; much of the
sandstone has subsequently been eroded way.  Recently the lands outside and
around the basin have been recognised as being highly prospective for uranium
mineralisation as they laid within the basin prior to erosion of the sandstone
cover sequence. These areas outside the basin are now host to extensive
ongoing exploration.

Boulder Trains - Occurrence of multiple clustered boulders, which have been
transported by the movement of glaciers away from a bedrock source. Boulder
trains can be traced 'up ice' (i.e. towards the source) and back towards a
potential deposit, they are an established and effective exploration technique
which have been used in the discovery of multiple deposits.

Scintillometer - A device that measures the number of ionising particles (such
as those derived from radioactive decay) in the air or derived from an object.
Commonly they measure in 'Counts Per a Second', with each 'Count' being
ionising radiation entering the device. Higher readings are generally
indicative of radioactive material within the sample being tested.

Electro-Magnetic Conductors - Geophysical features that indicates highly
conductive lithologies can be due to waterlogged faults, weakened or fractured
rocks, or graphitic units. Many high-grade unconformity-type Athabascan
uranium deposits are associated with these geophysical features, and thus they
area major target for exploration programs.

Frost Heave - Movement of soil and superficial deposits due to repeated growth
of ice in sub-zero conditions, which, over time, can reveal the underlying
rocks and outcrop.

Lake Sediment - Material collected from the bottom of lakes through specialist
equipment and analysed. In areas of poor outcrop, lake sediment surveys are
often used as a proxy to the nearby geology and can help identify potential
areas of mineralisation within nearby bedrock.

References

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

(3
)https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1893

(4) Jean Descarreaux, Rejean Gosselin (Marling Oil Corporation): Permit No.1
Pendleton Lake Esker Complex, CBS-4959, CBS-5333, MPP-1056, Saskatchewan
Report On The Field Work Done In 1980 (64E11-0031)

(5) Ian G. Park (Marling Oil Corporation): Airbourne Radiometric and VLF
Surveys Cairns Lake Permit 1 Extension Projects Saskatchewan (64E11-0031)

(5) L. A. Bayrock, Cairns Lake, Saskatchewan Anomaly, January 1980
(64E12-0043)

Reference Notes:

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 5 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.

 

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