REG - Power Metal - Uranium Targets Confirmed – Athabasca Basin Canada

Power Metal ResourcesAnnouncement

12/07/2022 15:30

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RNS Number : 2253S  Power Metal Resources PLC  12 July 2022

12 July 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Targets Confirmed - Athabasca Basin Canada

Hyperspectral Data Review - Further Target Refinement Complete

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update confirming uranium exploration targets across four
properties in the Company's uranium portfolio surrounding the Athabasca Basin,
Saskatchewan, Canada (the "Portfolio").

 

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

"The Power Metal technical team have been working hard to advance our
knowledge across the Athabasca uranium portfolio. The outcome of their work
for four properties is outlined below, in readiness for planned field
exploration this summer.

Notably, the work done has highlighted that the Tait Hill property hosts a
geological setting analogous to the Rössing uranium mine, one of the world's
largest uranium producing mines. This is exciting for the team and it's
important we get on site as soon as practicable to further analyse the geology
in the field."

 

HIGHLIGHTS

·    Power Metal's hyperspectral data analysis utilising Sentinel-2
satellite data on hydrogen and helium gas reflectance has refined existing and
confirmed new uranium exploration targets.

 

·    Target data to be used for next stage ground exploration this summer
across 4 properties including field spectrometer survey, rock sampling and
accredited laboratory lithogeochemistry testing of rock samples.

 

 

·    Tait Hill project demonstrates a geologic setting analogous to
Rössing, one of the world's largest uranium producing deposits as detailed
further below.

 

 

·    All Portfolio property information is being integrated into
comprehensive datarooms to support any future third party review.

 

 

FURTHER INFORMATION - HYPERSPECTRAL WORK PROGRAMME

Power Metal engaged Dr Neil Pendock, a highly respected remote sensing
consultant, to source and analyse hyperspectral satellite datasets across all
the Company's Properties surrounding the Athabasca Basin.

The hyperspectral data acquired and analysed as part of the ongoing work on
Power Metal's uranium portfolio utilises Sentinel-2 satellite (1) imagery from
the European Space Agency ("ESA") which has a spatial resolution down to 10m
dependent on band. The spectral information associated with the reflectance of
helium and hydrogen gas within the atmosphere can be a useful remote sensing
tool in the exploration for uranium deposits. Most helium on earth is derived
from the radioactive decay of radioactive elements, including uranium, while
hydrogen can be released by the dissociation of water molecules by ionising
radiation (linked to uranium deposits) on ground and surface water, a process
known as water radiolysis.

The focus of the current hyperspectral study has been the four properties:
Tait Hill; Soaring Bay; Clearwater; and Thibault Lake uranium properties
("Tait Hill", "Soaring Bay", "Clearwater" and "Thibault Lake" or the
"Properties"), which have been selected for the next stage of ground
exploration work scheduled to commence this summer.

A remote sensing study for the Reitenbach, Cook Lake and E-12 properties is
currently in progress.

PROGRAMME FINDINGS AND NEXT STAGE FIELD PROGRAMME

On the Tait Hill, Soaring Bay, Clearwater and Thibault Lake uranium
properties, the hyperspectral data collected has greatly refined, and in many
cases enhanced, previously defined targets.

Preparations to launch field teams to highest priority targets are being
finalised, and updates in regard to this will be released in due course. The
planned fieldwork will be carried out by field teams experienced in the local
geology from a highly reputable local geological consultancy who will be
completing transverses over pre-defined targets utilising a handheld gamma-ray
spectrometer (to detect radioactivity).

The refined targets have been defined in house by Power Metal's geological
team. The targets were developed by integrating multiple inputs including; 1)
data extracted from historical technical reports; 2) government and provincial
datasets; as well as 3) recently acquired hyperspectral imagery.

Tait Hill Targets

-      Mullis Lake Target: Located within a granitic intrusive geological
setting which the Company believe to be analogous to the Rössing Uranium mine
located in Namibia. The Rössing uranium mine, majority owned by the China
National Uranium Corporation Ltd, is the world's longest running open-pit
uranium mine (2). The Mullis Lake Target is defined by its geological setting
(detailed below) and a large hyperspectral anomaly with a series of elevated
U-in-lake sediment results located 'downsteam'. This target has not been
subject to detailed exploration historically and represents an important
Target for Power Metal.

 

The Rössing uranium mine, majority owned by the China National Uranium
Corporation Ltd, is the world's longest running open-pit uranium mine (2). The
Mullis Lake Target is defined by its geological setting (detailed below) and a
large hyperspectral anomaly with a series of elevated U-in-lake sediment
results located 'downsteam'. Mullis Lake has not been subject to detailed
exploration historically and represents an important target for Power Metal.

 

Geological and structural similarities between the Mullis Lake Target and
Rössing include:

 

Structural setting: On a project scale both localities are centred around a
plunging fold at the apex of a lozenge shaped granitic intrusion. On a
regional scale, both Rössing and Mullis Lake have a large shear structure
running parallel to the strike of the granitic intrusion (at Rössing that
structure is the Welwitschia Lineament, whilst at Mullis Lake the structure is
the Grease River Shear Zone).

 

Lithology: The granitic intrusion at both localities is considered to be of
monzonite-granodiorite composition. Historical exploration at Mullis Lake
noted the granite to be enriched in uranium and identified occurrences of
'radioactive leucogranites'. This is of note as at Rössing the uranium
mineralisation being exploited is hosted within leucogranite.

 

-      Northeastern Target: Centred on northwest-southeast trending
kilometre-scale uranium enriched dykes. At this target, the  hyperspectral
data is strongly coincident with one of these features. Local to the dykes,
uranium enriched samples with historical scintillometer results between 1,000
and 3,000 Counts-Per-Second ("CPS") have been identified through fieldwork
undertaken by a historical operator.

 

Soaring Bay Targets

-      East Soaring Lake Target: Centred on a mapped southeast-northwest
oriented shear structure where historical exploration has highlighted
significant radon gas anomalies. The planned work programmes will aim to
sample this radon enriched shear-zone using modern analytical and sampling
methods for radon gas. Helium (He) and hydrogen (H) gas Sentinal-2 satellite
data hyperspectral responses have been identified located southwest and
northeast of the shear structure - which may indicate the presence of
additional uraniferous material (at surface or slightly buried) near to the
main radon showing. Radon gas is produced by the decay of uranium and
accumulates within soil and groundwater, where it can be measured in situ.
Radon surveys have previously identified exploration targets on the Patterson
Lake trend for Fission Uranium Corporation and Nexgen Energy Ltd., leading to
the discovery of additional mineralised zones, including the Triple R Deposit,
held by Fission Uranium Corp

 

-      Upston Lake Target: Centred over multiple radioactive pegmatites
where historical scintillometer readings returned between 1,200 and 7,000 CPS.
The pegmatites were identified as part of previous exploration  by a
historical operator but were subject to limited testing. The hyperspectral
data collected has provided further targeting information to direct field
teams.

 

-      Flinthead Lake Target: Covers a pegmatite identified and tested by
a historical operator which returned scintillometer readings of up to 15,000
CPS. The Sentinal-2 hyperspectral data collected identified multiple offset
northeast-southwest trending He/H spectral responses, possibly related to
further buried pegmatites.

Thibault Lake Targets

-      West Tazin Lake Target: Covering a non-compliant resource estimate
produced by a historic operator of 65,000 lb at an average grade of 0.83 %
U(3)O(8)(3). This occurrence has now been re-examined, and the Sentinal-2
hyperspectral imagery study has highlighted that a wider, and largely untested
feature may be present outside of the main non-compliant resource area.
Associated with this hyperspectral target is an outcrop sample collected by
Power Metal in late 2021, which returned an impressive 3.86 % U(3)O(8).

 

-      South Laird Island Target: Historically, this part of the Thibault
Lake property has been underexplored, with no recorded exploration within the
last 60 years. The proposed work programme involves investigating various
north-east-east trending features in close proximity to an elevated lake
sediment result (108 ppm U) collected, and analysed by the Provincial Survey.
The Sentianl-2 hyperspectral data collected has provided further targeting
information to direct field teams.

Clearwater Targets

-      Toots Lake Target: Located near the north Clearwater property
boundary in close proximity to an extremely anomalous (99.4th percentile )
uranium in lake sediment result (233 ppm U) determined from the Provincial
Survey. This target is centred around previously mapped dykes/shears trending
in a northeast orientation which are sub-parallel with the regional geological
trend. The Toots Lake Target correlates with identified elevated Sentinal-2
hyperspectral He/H anomalies further enhancing target selection.

 

-      Hardin Lake Target:  Located in the northwest portion of the
Clearwater property, this target is centred on multiple untested outcrops
which are surrounded by a strongly anomalous U-in-lake sediment result of 166
ppm U collected, and analysed by the Provincial Survey. The hyperspectral data
collected has provided further targeting information to direct field teams.

 

-      A-6 North Target:  Located in the south of the Clearwater
property, this target includes drilled occurrences from the 1950s(4) which
included 'off upper scale' radioactivity within broken core and nearby
strongly anomalous (98.5th percentile) lake sediment results, collected, and
analysed by the Provincial Survey of  119 ppm U.  Hyperspectral data from
the targeted area shows a strong He and H spectral response.

 

North Webb Lake Target: Centred around two small discrete uranium occurrences
within the west of the Clearwater property. These occurrences are associated
with strong He and H spectral anomalies. No modern historical exploration work
has been recorded at this target.

 

GLOSSARY

Hyperspectral - Hyperspectral imaging concerns the collection and processing
of information from continuous and contiguous ranges of wavelengths across the
electromagnetic spectrum.

Plunging fold - a geological structure consisting of a lithological fold which
is tilted along the fold axis, in the case of the Mullis Lake Target the
lowest point of the plunging fold is opposite the mapped granitic intrusion.

Monzonite-granodiorite - An intrusive rock which is composed of quartz,
plagioclase, alkali feldspar, with minor hornblende and/or biotite

Leucogranite - An intrusive rock which contains only light minerals (quartz,
feldspar) and minor trace minerals.

Shear structure - an area of rocks which have become broken and sheared due to
tectonic processes, these structures can extend for hundreds of kilometres.

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
 Total Licence Holding Area                     45,001      450.1

 

 

REFERENCES

1:             European Space Agency Sentinel-2 information:
https://sentinels.copernicus.eu/web/sentinel/missions/sentinel-2
(https://sentinels.copernicus.eu/web/sentinel/missions/sentinel-2)

2:             https://www.rossing.com/shareholding.html
(https://www.rossing.com/shareholding.html)

3:             Rock Hill Uranium Ltd, DDH Record and Maps,
(74N14-008) Accessible via:
http://mineral-assessment.saskatchewan.ca/Pages/BasePages/Main.aspx
(http://mineral-assessment.saskatchewan.ca/Pages/BasePages/Main.aspx)

4:               Johnston, 1951 (Orbit Uranium Developments Ltd)
Report on Exploration, November 1951 (74N10-0178) Accessible via:
http://mineral-assessment.saskatchewan.ca/Pages/BasePages/Main.aspx
(http://mineral-assessment.saskatchewan.ca/Pages/BasePages/Main.aspx)

 

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)

 

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 %

 Alamo Gold Project     USA        Earn-in to 75%   Technical reports received following excavation of multiple test pits and     Analysis of technical reports and potential follow-on work programme under
                                                    mapping & sampling completed.                                                 review.
 Athabasca Uranium      Canada     100%             Hyperspectral data analysis conducted across all 7 properties. Updating to 7  Finalise review of data from 3 properties.  Prepare for summer exploration
                                                    data rooms for third party review.                                            programme across 4 properties.
 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 next exploration steps and action plan.
                                                    party review.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed. Review of Ajax & Berringa mine             Final drill programme results analysis and resource potential analysis from
                                                    remaining resource potential.                                                 former high-grade producing mines in granted licences.

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

 

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