TIDMPOW
RNS Number : 9522A
Power Metal Resources PLC
08 February 2022
8 February 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Reitenbach Uranium Property - Athabasca Basin
Historic Data Compilation over the Reitenbach Uranium Property
Delivers Exciting Results
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 Reitenbach
Uranium Property ("Reitenbach" or the "Property"), which is part of
the larger uranium portfolio which includes seven 100% owned
interests (Table 1) covering an area of 417.24 km(2) (41,724
hectares), surrounding the Athabasca Basin in northern
Saskatchewan, Canada.
A map highlighting some of the highlight results from the
historic data compilation completed on the Reitenbach Uranium
Property can be found at the following link:
https://www.powermetalresources.com/reitenbach-property-overview/
Reitenbach Property Overview
- The Reitenbach Property covers a total of 14,646-hectares (c.
146km(2) ) located in northeastern Saskatchewan, Canada.
Saskatchewan ranked third in the most recent 2020 Fraser Institute
Investment Attractiveness Index rankings of global mining
jurisdictions.(1)
- The Property is centered around seven Saskatchewan Mineral
Deposit Index ("SMDI") uranium occurrences, and covers a highly
anomlous lake-sediment sample of 130 parts per million ("ppm")
Uranium ("U"), the 11(th) highest (99.9th percentile) lake uranium
assay in the Geological Survey of Saskatchewan lake sediment
analysis database ("GSSSD") of 13,195 individual lake sediment
samples from the Precambrian Shield area of Saskatchewan. An
additional licence was staked recently in order to better cover
this highly prospective area (see linked Figure 1)(2)
- Reitenbach is in close proximity, or has continguous claim
borders with several publically listed uranium companies including
Forum Energy Metals Corp., Cameco Corp., and Appia Energy Corp.
- The Property is prospective for both porphyry-style (incl.
thorium-molybdenum-rare-earth element) and metasedimentary-hosted
uranium mineralisation.
- The Company is reviewing multiple strategic outcomes for the
Property, including the potential outright sale of the asset.
Further updates in respect to the Property are expected in the
coming weeks.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented:
"Power Metal has seen considerable interest in the Company's
uranium properties surrounding the Athabasca basin, and we see
significant value creation potential through the disposal of
certain interests either through direct sale to third parties or
the creation of new listings in the London markets.
We are therefore accelerating our property review work to
assemble in-depth datarooms for each property. The review of
historical data and exploration results of the Tait Hill property
were announced previously and Reitenbach Property is covered in
today's announcement.
Recognising the importance of uranium to our business, we have
recruited an additional uranium focused team member who is working
with us now to advance our uranium focused interests.
Further updates will follow as material developments occur."
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 historic work programmes
completed across the various Properties, including the Reitenbach
Uranium Property.
A total of 10 historic reports were digitised from work
programmes covering at least some part of the Property. These date
back to 1969, with only one work programme (2007 airborne survey)
completed since 1979. As a result, the Property has seen minimal
recent exploration.
Reitenbach Compilation Highlights
- Multiple historic operators noted that the Property has the
potential to host either low-grade, large-tonnage porphyry-style
uranium mineralistion, or higher-grade, lower-tonnage
sediment-hosted mineralisation within unexposed metasedimentary
rocks. Two reports highlighted the similarities between Reitenbach
and the Rossing Uranium mine ("Rossing") in Namibia, owned by the
China National Uranium Corporation Limited, known as the world's
longest running open-pit uranium mine.(3,4,5) The average grade
mined from Rossing in 2020 was 335ppm U.(3)
- The Reitenbach Property is noted as having less than 1% of
exposed outcrop, making traditional ground-based exploration
difficult. As a result, historic operators have relied heavily on
airborne geophysics and boulder sampling, a technique typically
used in northern Saskatchewan where mineralised boulders are mapped
in order to vector towards a covered outcrop source of uranium
mineralisation. Lake sediment results were originally used as a
first pass method in order to determine areas with relative uranium
enrichment to be targeted for further exploration.
- Several high-priority radiometric anomalies were identified on
Reitenbach from multiple historic airborne surveys. The majority
have now been digitised and can be found on the map available
through the link above.
- Historic results highlighted a NE-SW trending boulder train
located in the southern part of the Property, with results up to
5,720ppm U (incl. a result of 2,520ppm U). This area is coincident
with both:
1) the regionally important Needle Falls Shear Zone ("NFSZ"), it
is noted that 200km to the SW along the NFSZ is the Duddridge Lake
uranium deposit; and
2) the 130ppm U GSSSD result, the 11(th) highest lake sample
uranium result in the entire province. Further work is required in
this area to determine the bedrock source of this uranium
mineralisation.(4) An additional licence was staked recently in
order to better cover this highly prospective area (see linked
Figure 1).
- In the northern part of the Property, at least 8 historic
boulder samples grading >250ppm U were digitised, including
highlight results up to 2,320ppm and 2,883ppm U. Notably, a 1977
lake sediment sampling programme which oversaw the collection 3,042
total lake sediment samples covering an area of approximately
2,800km(2) (including the Reitenbach Property area), returned two
extremely anomalous results of 508ppm, and 452ppm U. Both of these
results are located within Reitenbach, and they represent the
highest two results from the entire survey.(5)
The Company's interpretation work continues to uncover exciting
findings within the historical dataset from our Athabasca uranium
portfolio in Saskatchewan, Canada.
With the fully digitised historical dataset now held by Power
Metal, we can continue to add value to the uranium portfolio
through our interpretation work. We anticipate additional updates
to the market highlighting our findings in the coming weeks.
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
------------------------------------ ---------------
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
---------------
*Bold text refers to ground acquired since the most recent
acquisition and expansions announced by the Company on 10 November
2021
Reference Notes:
1:
https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf
2:
https://geohub.saskatchewan.ca/datasets/gsc-lake-sedimentanalyses/explore?location=57.252950%2C-105.528550%2C6.69
3: https://www.rossing.com/shareholding.html
4: Robert J., Munday (Sasktchewan Department of Natural
Resources): Ground Evaluation of Airborne Radiometric Anomalies in
Crown Reserve 619, Northern Saskatchewan, During Summer 1975
(64L-0018)
5: David A. Harrigan (Saskatchewan Mining Development
Corporation): Final Report - 1977 Field Season Wollaston East
Project - SMDC Permits 7-10, CBS 4907 NTS 64 L-1, 2, 7, 8
(64L-0012)
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/ 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 (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 Results Awaited
or Underway
Alamo Gold USA Earn-in Excavation of multiple Field and assay
Project to 75% test pits and mapping results from on-site
& sampling. work programme.
---------- ---------- ------------------------ ----------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- ---------- ------------------------ ----------------------
Ditau Project Botswana 50% Preparatory exploration Field programme
work underway on findings and defined
target I10 leading drill targets for
to planned accelerated near term drilling.
drilling targeting
rare-earth elements
and base metals
---------- ---------- ------------------------ ----------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- ---------- ------------------------ ----------------------
Molopo Farms Botswana 53%(A) Kavango Option Results from various
to acquire an interest work activities
in local project underway as part
holding company. of the Kavango
Option fee payable Option
through defined
work programme
---------- ---------- ------------------------ ----------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Laboratory assay
drill programme results awaited
completed
---------- ---------- ------------------------ ----------------------
H aneti Project Tanzania 35% Diamond drill programme Results from field
underway programme including
drill programme
underway
---------- ---------- ------------------------ ----------------------
Victoria Goldfields Australia 49.9% Ongoing exploration Results from field
across +1500km(2) programme including
of granted exploration drill programme
licences underway
---------- ---------- ------------------------ ----------------------
Wallal Gold/Copper Australia 83.33%(B) Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed.
Ground reconnaissance
work underway.
---------- ---------- ------------------------ ----------------------
(A) should Kavango exercise their option to acquire Kalahari
Key, Power Metal interest would reduce to 40% of the Molopo Farms
Complex project
(B) assuming all licences held by URE Metals Pty Limited are
granted as outlined in the Company's announcement of 19.11.21
resulting in the issue of First Development Resources Ltd shares to
URE vendors
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