TIDMPOW
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/
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/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/
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
)
3
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
5
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/ 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 Results Awaited
POW Underway
%
Athabasca Canada 100% Ground exploration Assay result from
Uranium programme complete samples collected
at 3 properties. Preliminary during fieldwork.
planning for work
in Spring/Summer 2023
is ongoing.
--------- --------- ------------------------------ --------------------------
Authier Canada Earn-in Property Evaluation Update covering
North to 100% Report completed. exploration plans
Lithium for target areas
identified during
the Evaluation.
--------- --------- ------------------------------ --------------------------
Molopo Botswana 53%(#) T1-6 conductor target Drill programme
Farms drilling underway updates and findings
and MLEM surveys over from further MLEM
T1-6, T1-14, T1-3 survey work.
and T2-3 completed.
Further MLEM surveys
planned over additional
AEM targets identified.
--------- --------- ------------------------------ --------------------------
Tati Botswana 100% RC drilling and sampling Review of mine dumps
Project of mine dumps complete. 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 Investment - www.firstclassmetalsplc.com
Metals PLC POW 28.19%
Exploration
in the Schreiber-Hemlo
region of Ontario,
Canada
------------------------ ------------------------------------------------------------------
First Development Planned IPO www.firstdevelopmentresources.com
Resources - POW 62.12%
PLC Exploration
in Western Australia
and the Northern
Territory of
Australia
------------------------ ------------------------------------------------------------------
Golden Planned IPO www.goldenmetalresources.com
Metal Resources - POW 83.13%
PLC Exploration
and development
in Nevada, USA
------------------------ ------------------------------------------------------------------
Kavango Investment - www.kavangoresources.com
Resources POW 14.03% (subject
PLC to completion
of Kanye Resources
disposal announced
8.7.22)
Exploration
in Botswana
------------------------ ------------------------------------------------------------------
New Ballarat Planned IPO A new website is currently in development
Gold PLC - POW 49.9% which will be found at www.newballaratgoldcorp.com
Exploration .
in the Victoria In the interim further information
Goldfields of in respect of NBGC can be found at:
Australia https://www.powermetalresources.com/project/victoria-goldfields/
.
------------------------ ------------------------------------------------------------------
Uranium Planned IPO www.uraniumenergyexploration.com
Energy Exploration - POW on listing
PLC estimated 40-55%
------------------------ ------------------------------------------------------------------
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