REG - Power Metal - Uranium Portfolio Update – Athabasca Basin

Power Metal ResourcesAnnouncement

08/04/2022 07:00

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RNS Number : 7247H  Power Metal Resources PLC  08 April 2022

8 April 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Portfolio Update - Athabasca Basin

Highlights of Historical Data Compilation from the Clearwater and Thibaut Lake
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 on its Clearwater and Thibault Lake Uranium Properties
(together the "Properties"), within the Beaverlodge Uranium District, which
are part of the larger uranium (U) property portfolio that includes seven 100%
owned interests (Table 1) covering an area of 450.01km(2) (45,001-hectares),
surrounding the Athabasca Basin in northern Saskatchewan, Canada (the "Uranium
Portfolio").

Highlights include:

·   Properties host known 'Beaverlodge style', structurally related
vein-type, uranite (UO₂) (pitchblende) mineralisation, with a former uranium
trial mine on the Clearwater Uranium Property, and a historical non-compliant
resource of 65,000lb (29.5t) at an average grade of 0.83 % U(3)O(8) reported
on the Thibaut Lake Uranium Property.(6)

 

·  Government data indicates the presence of multiple occurrences of strong
vein-hosted uranium mineralisation on both Properties with sample assays of up
to 0.63% U(3)O(8) and 6.6% U(3)O(8) being reported for the Clearwater and
Thibault Lake Uranium Properties, respectively.( )

 

·    Majority of U-in-lake sediment samples taken from both Properties are
considered strongly anomalous (greater than 95(th) percentile) for uranium,
with respect to regional data,  suggesting nearby sources of uranium
mineralisation.

 

·    Results of a historical data review supplement and support the strong
uranium mineralisation identified during Power Metal's ground exploration
completed on both Properties during Q4 2021.

A map highlighting results from the historical data compilation completed on
the Clearwater and Thibault Lake Uranium Properties are available through the
following links:

https://www.powermetalresources.com/clearwater-overview-map/
(https://www.powermetalresources.com/clearwater-overview-map/)

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

 

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

"Today's update covers the Clearwater and Thibault Lake Uranium properties
located a short distance from Uranium City, Saskatchewan, near the northern
edge of the Athabasca Basin. Both Properties host 'Beaverlodge-style'
structurally related uranium mineralisation, with Clearwater also having a
historical deposit with a non-compliant uranium resource of 65,000lb at an
average grade of 0.83% U(3)O(8.)

The findings from our technical review of both Properties confirm significant
uranium prospectivity and extensive opportunities for forward exploration
work.

Importantly, with today's announcement we have completed a full technical data
review for all seven Power Metal Athabasca region properties, and all seven
have demonstrated significant uranium prospectivity.

We now have seven data rooms available which can be used for external
third-party discussions, and also for internal exploration planning.

I would like to thank the team for working through the immense amount of
historical information and undertaking the detailed review thereon. This work
has added considerable value to our uranium portfolio at a particularly
compelling time with uranium demand and price rising contemporaneously."

Clearwater Uranium Property Overview

-   The Clearwater Property ("Clearwater Property" or "Clearwater") covers
an area of 7,916-hectares (c. 79.16km(2)) located in northern Saskatchewan,
Canada. The property is less than 10km from the northern edge of the Athabasca
Basin, within the Beaverlodge Uranium District, 15km from Uranium City,
Saskatchewan - a historically prospective area for uranium exploration and
mining. Saskatchewan ranked third in the most recent 2020 Fraser Institute
Investment Attractiveness Index rankings of global mining jurisdictions.(1)

 

-    Clearwater hosts nineteen Saskatchewan Mineral Deposit Index ("SMDI")
occurrences, of which 14 are uraniferous, and includes a former uranium trial
mine. The uraniferous occurrences in the Beaverlodge Uranium District are
predominantly linked with structurally associated vein-type or breccia-type U
mineralisation, linked to faults and shears, but may span a wide variety of
uranium mineralisation types as typified in the wider Beaverlodge Uranium
District. The Ace-Fay-Verna deposit (located 14km southeast of Clearwater) is
reported to have historically produced over 12,000 tonnes of U (24 Million lb)
at an average grade of 0.28% U. In addition, four base-metal and one
precious-metal SMDI occurrences (copper, lead, zinc and silver showings) have
been identified on Clearwater.

 

-   Historical work has been highly localised and centred on select
previously identified geochemical anomalies and geophysical results. This
historical work, collated by Power Metal, has identified previously drilled
uranium-rich mineralisation, elevated uranium anomalism within spring water
occurrences and numerous radioactive outcrops with scintillometer readings of
over 250 counts per second ("CPS"). In addition, government data indicates
strongly anomalous U-in-lake sediment results. The vast majority of the
Clearwater Property is underexplored and untested by modern exploration
methods.

 

-     Clearwater is considered prospective for vein-type or breccia-type
structurally hosted 'Beaverlodge-style', pegmatite and basement-hosted
unconformity related uranium mineralisation.

 

Thibaut Lake Uranium Property Overview

-    The Thibault Lake Property ('Thibault Lake Property" or "Thibault")
covers an area of 4,401-hectares (c. 44.01km(2)) located approximately 25km
north of the Athabasca Basin edge, approximately 15km northwest of the
Company's Clearwater Property, and is also within the Beaverlodge Uranium
District.

 

-    Historical work on Thibault, collated by Power Metal, has centred on
defining anomalous areas of vein-hosted Uranium mineralisation, and has
suggested the possible presence of a historical moderately sized
'Beaverlodge-style' uranium occurrence.

 

-   Thibault is centred around six SMDI uranium occurrences which were
discovered during previous exploration campaigns. Samples of up to 6.6%
U(3)O(8) (5.6% U) have been reported from uranium-rich veins uncovered from
historical trenches.

 

-      The Thibault Lake Property is considered by Power Metal to be
prospective for vein hosted 'Beaverlodge-style' and pegmatite-hosted uranium
mineralisation.

 

FURTHER TECHNICAL INFORMATION

Power Metal recently completed an in-depth historical data compilation across
its entire Uranium Portfolio surrounding the prolific Athabasca Basin,
Saskatchewan, and now possesses a robust fully-digitised database covering all
historical work programmes completed across each asset, including the
Clearwater and Thibaut Lake Uranium Properties.

A total of 26 historical reports were digitised from work programmes covering
at least some part of the Clearwater Property. These date from the 1950s to
1975 and include ground exploration, trenching and lake sampling, with no
further work in the most recent 45 years. On  the Thibault Property, a total
of 17 historical reports cover the area. Dated between 1954 and 1979 these
include trenching, drilling, airborne and ground scintillometer survey
results.

 

Clearwater Compilation Highlights

-    The Clearwater Property covers nine Geological Survey of Canada
("GSC") lake sediment results. With respect to 6,000 regional data points, all
are elevated (>80th percentile), four are considered highly anomalous with
48, 55, 57 and 69 ppm U (95th to 97th percentile) reported. The remaining four
samples are considered extremely-anomalous, with results between 110 and 233
ppm U (98.5th to 99.4th percentile).

 

-    Water sampling, as part of historical exploration activities, has
yielded highly-elevated uranium anomalism (44 U gamma/l) from a spring located
in the south of the Clearwater Property (versus a background of ~0.4 U
gamma/l).(2) This uraniferous spring is in close proximity to previously
identified radioactive outcrops, including a 30 m long x 10 m wide lens within
granitic gneiss' that returned select grab sample results between 0.018 and
0.15% U(3)O(8).(2)

 

-    The Property overlies multiple major fault- and shear-zones, which
are coincident with known uranium and radioactive occurrences which include:

 

1.   Associated with a shear-zone located in the south of the Clearwater
Property, the 'A-6 occurrence' returned uraniferous mineralisation of up to
0.145% U(3)O(8) within a massive graphite and graphitic pelite with associated
local hematite (iron oxide), pyrite and hydrothermal alteration.(3) These
features are typical of both basement-hosted unconformity and
'Beaverlodge-style' uranium deposits. These represent high-priority
exploration targets for the Company that will be targeted during future work
programmes.

 

2.  Associated with a shear-zone located in the northeast of the Clearwater
Property, the 'A-8 occurrence' has received multiple drillholes which
identified weakly radioactive brecciated pegmatites alongside a 20 m zone of
elevated surface radioactivity.(4) Ground exploration carried out by Power
Metal in 2021 identified uraniferous outcrops 400 m to the northwest  of the
A-8 occurrence which returned scintillometer results between 650 and 1,200 CPS
hinting at the possible size of this uranium enriched zone.

 

3.    The Don Henry Mine operated in the early 1950s and consists small
mine trial workings including trial pits and a small, inclined shaft.
Historical records indicate that channel sampling returned 0.3m at 0.31%
U(3)O(8). (5)

 

In addition, the Clearwater Property hosts further uraniferous occurrences
recorded on the SMDI. These occurrences are also spatially related to the
fault systems on the property and are generally hosted within intrusive
bodies:

 SMDI Number                                                                                           Occurrence                                                                     Result*
 1465                                                                                                  Contacts between pegmatites and mafic units/biotite pods                       Up to 0.18% U(3)O(8) within a chip sample
 (https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1465)
 1467                                                                                                  Biotite gneiss exhibiting considerable staining                                0.53% U(3)O(8) from grab sample
 (https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1467)
 1468                                                                                                  Two narrow parallel fractures 1.5 m apart in granite                           0.63% U(3)O(8) from vein samples
 (https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1468)
 1469                                                                                                  Closely spaced fractures at the contact between granite and the country rocks  0.55% U(3)O(8) from a grab sample
 (https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1469)
 1474                                                                                                  Quartz veining in pegmatite dykes and slip planes associated with nearby       0.13 - 0.145% U(3)O(8) from chip/grab sample
 (https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1474)   faulting
 2111                                                                                                  Radiometric anomaly and minor scintillometer readings within gneiss            Very high scintillometer readings (exceeding 15,000 cps) in outcrop
 (https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=2111)

*Historical results obtained from the Saskatchewan government Saskatchewan
Mineral Deposit Index (SMDI) website. The source of each entry can be viewed
by clicking the hyperlinked SMDI number.

The wide geographic spread, and notable uranium grades underscore the general
prospectively of the Clearwater Property.

 

Thibault Compilation Highlights

-   The Thibault Property covers four GSC lake sediment results. With
respect to regional data, two are considered highly anomalous 24.5 and 38.6
ppm U (97(th) and 98.5(th) percentile, respectively) and one is considered
extremely anomalous, with a value of 108 ppm U (99. 8(th) percentile).

 

-      Previous drilling near the eastern part of the Thibault Property
led to the delineation of a historical non-compliant vein-hosted deposit of
approximately 65,000lb (~29.5 tonnes) at an average grade 0.83 % U(3)O(8). In
addition, historical trenching on the property has identified narrow (0.1m
wide) veins which returned results between 1.6 to 6.6% U(3)O(8) (tri-uranium
octoxide), which were shown to extend for at least 25m along strike - these
occurrences included visible uranite mineralisation.(6)

 

-      Exploration and sampling undertaken by Power Metal in late 2021
has yielded impressive radioactivity in outcrop including results between 450
and 46,000 CPS, (0.04 - 0.165% U(3)O(8)).

 

-      The Thibault Property hosts seven SMDI uranium occurrences, all of
which are classified as 'Beaverlodge-style' and associated with either faults,
amphibolite units or granite, with uranium values of up to 3.85% U(3)O(8).(7)

 

Uranium Property 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 Saskatchewan Uranium Portfolio.

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

 

 Project                        Licence ID  Area - Hectare
 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
                                MC00015874  748
                                MC00015875  2529
 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
                                MC00015824  528
 Total Land Holdings                        45,001

 

Glossary:

Basement-Hosted Unconformity Uranium Deposits: Uranium deposits which have
formed below a geological unconformity, rather than at, or above it.

Beaverlodge-style: A group of small, but moderate to high-grade uranium
deposits found to the northwest of the Athabasca Basin. Such deposits are
typically present along faults, fractures or shear zones, generally containing
pitchblende, quartz, calcite, chlorite and sulphide minerals; or within a
brecciated unit (see below) containing pitchblende, galena, quartz, calcite,
chlorite, and pyrite.

Brecciated: Brecciated rocks are those which been subjected to either intense
structural forces or  hydrothermal alteration, of which the later can alter
the mineralogy or chemistry of rocks. Certain mineral deposits, such as
breccia hosted uranium are typically found within this rock type.

Graphitic pelite: A type of metamorphic rock (a schist) containing high levels
of graphite common within the Athabasca Basin; these rocks are often
associated with mineralisation within unconformity-hosted related deposits.

Pegmatites: Pegmatites are coarse grained intrusive rocks which often carry
economic mineralisation, they commonly form 'sheets' of rock close to larger
intrusions.

Uraniferous: Enriched in uranium

 

Reference Notes:

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

(2) Okadu et al, 1974, (Marubeni Canada Ltd) Hydrochemcial and Radiometric
Survey Report on CBS-5368, 5369 & 5370 Athabasca M.D. Saskatchewan with
Partial Results of Previous Airborne Survey. (74N10-0461)

(3) Johnston, 1951 (Orbit Uranium Developments Ltd) Report on Exploration,
November 1951 (74N10-0178)

(4 )Gui Por Gold Mines Limited, 1953, Drill Logs and Maps (74N10-0001)

(5
)https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1473

(6) Rock Hill Uranium Ltd, DDH Record and Maps, (74N14-008)

(7
)https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1544

 

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 all Properties complete.
 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                                    Technical Review of exploration results & define next exploration steps.
 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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