REG - Power Metal - Uranium Portfolio Update – Athabasca Basin, Canada
05/10/2022 09:45
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RNS Number : 8692B Power Metal Resources PLC 05 October 2022
5 October 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Uranium Portfolio Update - Athabasca Basin, Canada
Exploration Update, Expansion of Existing Interest and New Property
Acquisition
Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update in respect of its uranium property portfolio in the
Athabasca Basin area in Saskatchewan, Canada.
HIGHLIGHTS:
· New property added to Power Metal uranium portfolio. Badger Lake
Uranium Property ("Badger Lake"), acquired through claim staking, covers an
area of 16.71km(2) within the prolific Athabasca Basin. Badger Lake is
surrounded by claims held by uranium focussed companies including Orano SA,
Hathor Exploration and NexGen Energy Ltd.
· Power Metal Athabasca uranium portfolio now consists of twelve
properties, including a conditional disposal(1), with a combined total area of
829.58km(2).
· Exploration programme over the 100%-owned Thibault Lake, Clearwater
and Tait Hill properties (announced on 10 August 2022 (1)) has completed
successfully, resulting in:
o Multiple locations of anomalous radioactivity noted across all three
properties with rock sample assay results currently awaited.
o Tait Hill property expanded by 32.42km(2) to 110.56km(2), based on work
results and to include the full extent of the Mullis Lake Target as well as an
anomalous lake sediment result.
· Following the acquisition of the Reindeer Lake, Old Woman Rapids and
Porter Lake Uranium properties in July 2022 (2), historical data compilation
has now been completed. Fact sheets are being compiled highlighting the
findings of this work which will be published on the Company's website in due
course.
· A hyperspectral remote sensing review has been completed on the Cook
Lake and E12 uranium properties, aiding in the development of targets for
future exploration.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc,
commented:
"Power Metal is currently engaged on drilling large-scale conductors at the
Molopo Farms Complex Project in Botswana, targeting a major nickel discovery
or discoveries. That important and potentially transformational work
continues.
Alongside its Botswana operations the Company has a broad portfolio of
interests, many offering district scale potential, including notably our
Athabasca uranium interests.
As readers of this announcement will see, we have been particularly active in
the development of our Athabasca properties, furthering ground exploration and
analysis, expanding the key Tait Hill property and securing a new property,
Badger Lake.
We view the uranium portfolio of Power Metal to be a key part of our Company,
seeing us uniquely well positioned for what we expect to be a significant
increase in the level of interest in junior resource companies offering
uranium exposure.
Being listed in London, where there are few uranium investment opportunities,
the building of our uranium portfolio in the Athabasca, and globally, is even
more significant.
Shareholders can expect more developments from Power Metal's current and
potential future uranium interests over the balance of 2022 and into 2023."
Thibault Lake, Clearwater and Tait Hill Exploration Programme Overview
The recently completed exploration fieldwork conducted over the three Thibault
Lake, Clearwater and Tait Hill properties consisted of ground investigation,
gamma-ray spectrometer surveying and rock sampling and over pre-defined target
areas.
The field team successfully identified multiple locations of anomalous
radioactivity across all three properties and collected a total 46 rock
samples for assay. Notable findings in each property include:
· Clearwater uranium property: a historical mine associated with
anomalous radioactivity was located and investigated;
· Thibault Lake uranium property: additional mineralised fault zones
were encountered, expanding previously defined target areas mapped during the
2021 exploration programme; and
· Tait Hill uranium property: multiple occurrences of anomalously
radioactive granites and pegmatites were mapped in the southwest of the
property. This zone, named the 'Mullis Lake Target', is considered to have
geological similarities to the setting of the Rössing Uranium Mine located in
Namibia. The Tait Hill uranium property has been expanded by 32.42km(2) in
order to cover the entire extension of the Mullis Lake Target which was not
previously held within the property boundary.
All samples collected during the 2022 field programme are currently in transit
to Saskatchewan Research Council laboratories for multi-element assay analysis
including uranium, REE's and base metals. Full comment, discussion and
analyses of the results of this fieldwork will be released upon completion of
the analytical testing in the coming months.
Phase I exploration on the three properties has successfully contributed to
the development and refinement of uranium focused exploration targets, with
the intention of eventually progressing the highest priority targets to a
drill-ready stage.
Further information in respect of the Phase II programme for Soaring Bay will
be provided in due course.
A map highlighting the new Tait Hill property footprint may be viewed in
Figure 1 below and through the following link:
https://www.powermetalresources.com/tait-hill-uranium-property/
(https://www.powermetalresources.com/tait-hill-uranium-property/)
Figure 1 - Tait Hill Uranium Property Map: A map of the Tait Hill Uranium
Project, including the locations (and counts per second or 'CPS' - a measure
of radioactivity) of samples collected during 2022, the geology of the
southwest of the property and location of the Mullis Lake, and North Western
Targets.
Historical Data Compilation and Digitisation
Old Woman Rapids Property Overview
- The Old Woman Rapids uranium Property ("Old Woman Rapids") covers
a total of 129.58km(2) and is located 29.5km from the companies Soaring Bay
uranium Property, approximately 120km southwest of the prolific Athabasca
Basin.
- Old Woman Rapids covers one Saskatchewan Mineral Deposit Index
(SMDI) occurrence (3) of a radioactive pegmatite which returned assays of
0.43% and 0.57% U(3)O(8), and also contained appreciable quantities of lead
and zinc.
- Historical work has highlighted elevated U-in-lake sediment
results within the western part of the property, including 97(th) percentile
results of 23.3 ppm U, and further elevated results of 21 and 31 ppm U. Near
the Old Woman Rapids western claim boundary there are multiple north-south
trending radiometric anomalies over an area of 800 x 600 m (>20 counts per
second).
Porter Lake Uranium Property Overview
- The Porter Lake uranium Property ("Porter Lake") covers an area of
108.54km(2) and is located approximately 100km south of the Athabasca Basin
edge and 4km from the Old Woman Rapids uranium Property.
- Porter Lake is centred around two SMDI uranium occurrences which
were discovered during previous exploration campaigns conducted by previous
operators. SMDI 1055 (4), is highlighted by rock samples taken near to the
western claim boundary which returned up to 0.084% U(3)O(8) as well as 0.14
oz./ton silver (Ag), 0.13% copper (Cu) and 0.14% nickel (Ni). Near to the
eastern claim boundary; SMDI 1056 (5), is highlighted by rock samples that
returned between 0.1% and 0.2% U(3)O(8) over 0.6 to 1.4m at shallow (<70 m)
depths from drilling.
- Historical work has highlighted an anomalous U-in-lake sediment
result of 30 ppm U near to the western claim boundary, and multiple greater
than 85(th) percentile results between 8.5 to 11.5 ppm U.
- Near the eastern claim boundary, historical work has outlined
multiple electromagnetic ("EM") geophysical conductors which are coincident
with airborne radiometric anomalies (6). While in the west, a radiometric
anomaly is in close proximity to an elevated U-in-lake sediment result.
Reindeer Lake Uranium Property Overview
- The Reindeer Lake Uranium Property ("Reindeer Lake Property" or
"Reindeer Lake") covers an area of 3,336-hectares (circa 33.36km(2)) located
approximately 120km southeast of the prolific Athabasca Basin edge.
- The property is centred on one SMDI uranium occurrence, the Ghana
Lake Radioactive Pegmatite Dyke, which returned assays of up to 1.9% U(3)O(8)
and 0.09% ThO(2).
The Old Woman Rapids, Reindeer Lake and Porter Lake uranium properties are
considered prospective for pegmatite-hosted uranium or rare earth element
("REE") mineralisation. A map highlighting results from the historical data
compilation completed on the Old Woman Rapids and Porter Lake Properties are
below in figures 2 & 3, and on the two links below:
https://www.powermetalresources.com/old-woman-rapids-uranium-property/
(https://www.powermetalresources.com/old-woman-rapids-uranium-property/)
https://www.powermetalresources.com/porter-lake-uranium-property/
(https://www.powermetalresources.com/porter-lake-uranium-property/)
Figure 2 - Old Woman Rapids Uranium Property Map: A map of the Old Woman
Rapids Uranium Project, including the locations of the radioactive pegmatite
(SMDI 1057), elevated U in lake sediment results and coincident faulting and
radiometric anomalies.
Figure 3 - Porter Lake Uranium Property Map: A map of the Porter Lake Uranium
Project, including the locations of the two SMDI uranium occurrences, U in
lake sediment results - including the anomalous result of 30 ppm U. In
addition, in the west of the property, electromagnetic (EM) conductors are
coincident with airborne radiometric anomalies
Hyperspectral Remote Sensing Review on Cook Lake and E-12
At the Cook Lake uranium property, the hyperspectral remote sensing data
compilation and processing study has highlighted multiple northeast to
southwest trending anomalies which have elevated levels of helium and hydrogen
(produced as a result of radioactive decay of uranium). Many of these
helium/hydrogen anomalies are spatially related to radiometric anomalies
determined through previous exploration and elevated U-in-lake sediments
On the E12 uranium property, the hyperspectral study has indicated potential
expansions to areas of interest associated with boulder fields in the north of
the property and highlights a spatial relationship with observed EM geophysics
conductors.
The acquired hyperspectral data on these two properties is a valuable input to
Power Metal's comprehensive data rooms and will aid in future exploration.
The Badger Lake Property
Mineral Claim Staking Process
The Badger Lake uranium property ("Badger Lake") was 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 becomes reopen to third party staking at
a set time each month. At reopening, areas of high uranium prospectivity are
typically highly contested due to their prime positions within the prolific
Athabasca Basin, as was the case with the Badger Lake uranium property. The
cost of staking was Canadian $1,002.43, and the newly staked licence comes
with a two-year term with no minimum spend requirement and which can then be
extended for subsequent years by spending a minimum of Canadian $25,065 per
annum.
The Badger Lake Uranium Property Highlights
The Badger Lake is surrounded by ground held by major uranium operators and
explorers including Orano SA, Hathor Exploration (owned by Rio Tinto; LSE:
RIO) and NexGen Energy Ltd (TSX: NXE). The property is located 30 km east from
the Patterson Lake Trend which hosts such deposits as Fission Uranium's Triple
R Project (reported Mineral Resource of 2.69 Mt @ 1.94% U(3)O(8) Indicated)
and Nexgen's Arrow Project (reported Mineral Resource of 3.754 Mt @ 3.1%
U(3)O(8) Measured & Indicated and 4.399Mt @ 0.83 U(3)O(8 ) Inferred). A
private maintained road runs through Badger Lake, providing easy access for
future field and drilling campaigns.
Property Geology
Geological reports highlight that the Badger Lake property is underlain by
around 200-350m of sandstone that sits unconformably over crystalline
basement. A single historical drillhole (BP-07-01) (7) is located on the
property. Drill logs show this hole intersected 325m of Athabasca sandstone,
which included brecciation, clay and hematite alteration, and vuggy quartz -
textures which are typical of alteration within the Athabasca Basin. Below the
geological unconformity contact (within the basement rocks) BP-07-01
intercepted meta-sedimentary rocks with 20m of hematite alteration. In
addition, a common accessory mineral to uranium deposits, calcite, was
reported to coat fractures.
The unconformity contact between the sandstone and the underlying crystalline
basement lithologies is the main target for uranium exploration in
Saskatchewan, and deposits such as McArthur River (416 Mlb at 15% U(3)O(8)),
Cigar Lake (152.4 Mlb at 7.55% U(3)O(8)), Hurricane and Phoenix (60 Mlb at
19.1% U(3)O(8)) are located at, or in close proximity to this geological
contact zone.
Historical geophysical analysis (8) indicates the presence of a northeast to
southwest trending conductor (which BP-07-01 was drilled in the vicinity of)
which runs between two EM geophysical anomalies. This conductor has never been
drill tested.
A map highlighting the newly staked Badger Lake property may be viewed in
Figure 4 below and on the following link:
https://www.powermetalresources.com/badger-lake-uranium-property/
(https://www.powermetalresources.com/badger-lake-uranium-property/)
Figure 4 - Badger Lake Uranium Property Map: A map of the Badger Lake Uranium
Project, highlighting the location of the electro magnetic anomaly and the
inferred conductor in the in the centre of the property, and the location of
the historical drillhole in the east of the property.
URANIUM PROPERTIES - HOLDING STRUCTURE
Power Metal has a 100%-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 Athabasca
uranium portfolio outlined in Table 1.
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
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 886 8.86****
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
Durrant Lake AC00018000 5,866 58.66
Badger Lake** MC00016253 1,671 16.71
Total Licence Holding Area 82,958 829.58 km(2)
*Reitenbach Property conditionally disposed to Teathers Financial PLC as
announced 8 August 2022.
**Newly staked Property
***Additional staked ground
****Previously shown in error as 8.56km(2)
GLOSSARY
Pegmatites: Pegmatites are coarse grained intrusive rocks which often carry
economic mineralisation, they commonly form 'sheets' of rock close to larger
intrusions.
U(3)O(8 :) Uranium oxide, containing 84.8% uranium.
Uraniferous: Containing uranium
Reference Notes:
1 Power Metal Resources PLC company
announcement, Uranium Exploration Update - Athabasca Basin: 2022 Phase I Field
Programme Underway Targeting Clearwater, Thibault Lake and Tait Hill Uranium
Properties, dated 10 August 2022:
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xjjon1x
). Note: the programme
2 Power Metal Resources PLC company
announcement, Uranium Acquisitions - Athabasca Basin Canada, dated 26 July
2022:
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xz023lr
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xz023lr)
)
3
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1057
(https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1057)
4
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1055
(https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1055)
5
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1056
(https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1056)
6 Kennedy E.G., 1981, Final Report on
the Mudjatik Lake and Complex Lake Projects- Mineral Prospecting Permits 1043
and 1111 and Containing Mineral Claims HUS 1-10 and S94793 to 94795 and S94799
and S9480 (74B06-0032).
7 Titan Uranium, 2008, 2007 Diamond
Drill Program Meanwell Lake, Bishop I & Bishop II Projects (74F10-0049)
8( ) COGEMA, Laurie Project Cluff Lake
Area, Saskatchewan Electromagnetic Maps (74F10-0035)
QUALIFIED 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 Qualified 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.
Project Location Current Work Completed or Underway Results Awaited
POW %
Athabasca Uranium Canada 100% Ground exploration programme complete at 3 properties. Preliminary planning Assay result from samples collected during fieldwork.
for work in Spring/Summer 2023 is ongoing.
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%(#) T1-6 conductor target drilling underway and MLEM surveys over T1-6, T1-14, Drill programme updates and findings from further MLEM survey work.
T1-3 and T2-3 completed. Further MLEM surveys planned over additional AEM
targets identified.
Tati Project Botswana 100% RC drilling and sampling of mine dumps complete. Review of mine dumps sampling and results from RC drill programme.
(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%
Exploration work programmes may also be underway within Power Metal investee
companies and 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.
These interests are summarised in the table below:
Company Status/Operations Link
First Class Metals PLC Investment - POW 28.19% www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)
Exploration in the Schreiber-Hemlo region of Ontario, Canada
First Development Resources PLC Planned IPO - POW 62.12% www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)
Exploration in Western Australia and the Northern Territory of Australia
Golden Metal Resources PLC Planned IPO - POW 83.13% www.goldenmetalresources.com (http://www.goldenmetalresources.com)
Exploration and development in Nevada, USA
Kavango Resources PLC Investment - POW 14.03% (subject to completion of Kanye Resources disposal www.kavangoresources.com (http://www.kavangoresources.com)
announced 8.7.22)
Exploration in Botswana
New Ballarat Gold PLC Planned IPO - POW 49.9% A new website is currently in development which will be found at
www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
Exploration in the Victoria Goldfields of Australia
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/) .
Uranium Energy Exploration PLC Planned IPO - POW on listing estimated 40-55% www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)
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