TIDMPOW
RNS Number : 8605I
Power Metal Resources PLC
10 August 2023
10 August 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Ion Battery Resources - Lithium Exploration Underway
Power Metal Resources PLC (AIM:POW), the AIM listed metals
exploration and development company, announces the launch of
lithium exploration at the North Wind Lithium Project in the
Province of Ontario, Canada ("North Wind" or the "Project").
North Wind is 100% owned by Ion Battery Resources Limited
("Ion") a wholly owned subsidiary of the Company which is targeting
transition metals including lithium and graphite in mining friendly
Ontario, Saskatchewan and Quebec, in Canada.
Power Metal is now the 100% owner of North Wind (lithium), as
well as the Authier North (lithium) and Doerksen Bay (graphite)
projects, which together represent a compelling and prospective
group of battery metals assets focused in some of Canada's top
mining jurisdictions.
On 12 July 2023, POW successfully expediated the earn-in on
Ion's Authier North Lithium Project, and the associated claim
transfer into Ion's 100% owned Canadian subsidiary is now nearing
completion.(1)
Separate updates detailing next corporate steps for Ion and
exploration updates for the Authier North lithium and Doerksen Bay
graphite projects, will be provided in due course.
Sean Wade, Chief Executive Officer of Power Metal Resources plc,
commented:
"Power Metal has a number of interests providing potential
exposure to lithium and we see an opportunity with Ion to create
considerable value through a material investment in active lithium
exploration.
Based on studies conducted by the Ontario Geological Survey, and
highly anomalous lake sediment sampling results, the North Winds
Project area is considered highly prospective for lithium pegmatite
exploration, and the significant opportunity means we are moving
ahead at pace with this programme. As is the case across our
portfolio, we aim to undertake methodical and cost-effective
exploration, and we look forward to updating shareholders on the
results in due course.
Ion currently represents a small part of the Power Metal global
project portfolio. However, it is shaping up well and we expect to
confirm Ion's planned crystallisation pathway in the coming
months."
Highlights:
- The North Wind Project area is considered prospective for the
discovery of pegmatite hosted lithium mineralisation.
Lithium-caesium-tantalum bearing pegmatites account for
approximately a quarter of the world's lithium production. (2)
- Lake sediment sample results from within the Project
demonstrate highly anomalous concentrations of lithium, caesium and
tantalum, which will help guide the current exploration
campaign.
- Ion has mobilised exploration crews at North Wind, to
undertake the first ever lithium focussed exploration programme
which will include geochemical sampling as well as prospecting and
rock sampling over zones of interest.
- The ongoing work programme fits with Power Metal's business model which includes:
o Acquiring highly prospective exploration assets in mining
friendly jurisdictions through low-cost means including claim
staking and/or option/earn-in/outright purchases;
o Conducting cost-effective, methodical exploration over the
asset in order to increase the amount of available technical data
and inherent asset value; and
o Crystallise the increased value of the asset on Power Metal's
balance sheet primarily through spin-outs and or an outright
sale/joint-venture.
- The initial deliverable from this important exploration
programme will be a geochemical dataset which will provide
important vectors towards the possible location of covered lithium
(Li)-Caesium (Cs)-Tantalum (Ta)-bearing pegmatites ("LCT
Pegmatites") within the North Wind claim boundary. The exploration
field crew have good experience exploring and prospecting for LCT
Pegmatites and if any are encountered at surface they will be
sampled and sent for laboratory assay.
Northwind 2023 Exploration Campaign
The exploration programme will be carried out by Ontario based
field contractors with oversight from Power Metal's technical team
based in the United Kingdom. The programme is underway and includes
a team of experienced lithium geologists and field assistants and
will consist of soil sampling orientated at 90 deg to North Wind
Lake (see Fig. 1) as well as prospecting and rock sampling over any
zones of interest. Due to the projects poorly understood geology
and the expected glacial cover (potentially obscuring the LCT
Pegmatites), the planned programme will produce an important
dataset which will provide information about the geological makeup
of the area and allow for vectoring towards potential LCT
Pegmatites.
The North Wind project area is accessible via all-terrain
vehicles ("ATV") and boat, allowing for the exploration programme
to be completely in a fast and cost-effective manner.
North Wind Background
The North Wind Project covers a total area of 57.89 km(2)
located approximately 25km to the northeast of Beardmore, Ontario,
upon the Onaman-Tashota Greenstone Belt which is considered highly
prospective for LCT Pegmatite occurrences - the main source of
'hard rock' lithium worldwide. Despite this prospectivity, no
records of lithium focussed exploration over North Wind
exists.(3)
Other lithium explorers and operators within the region include
Imagine Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium
Project (with a reported historical non-compliant resource of
2,000,000 tonnes at 1.09% Li(2) O), located 50km to the south of
North Wind and Green Technology Metals (ASX: GT1) with their
flagship Seymour Project (which hosts a JORC compliant total
Mineral Resource of 9.9Mt at 1.04% Li(2) O) located approximately
65km to the northwest.
The Project is centred on a granitic intrusion, cut by numerous
mapped dykes. Highly anomalous lake sediment results (detailed
further below) suggest that a zoned LCT-bearing pegmatite system
may be present but has never been investigated. North Wind was
identified through detailed research and analysis by Power Metal's
technical team, utilising over 600,000 individual lake sediment
sample points collected by the Ontario Geological Survey ("OGS"),
who also prepared selected recommendations for exploration which
were presented in a OGS open-file report.(4) Based on this data as
well as information contained within the report; the area
encompassing the North Wind Project was selected for the strategic
acquisition by staking.
The highly prospective and anomalous lake sediment data
contained within the Project includes:
- Seven instances of >99th percentile (with respect to
regional data) Li-in-lake sediment results (ranging from 18.63 to
34.95 ppm Li) with 34.95 ppm representing the 99.95th percentile
result.
- Of those seven samples, six are >95th percentile for
caesium (1.26 to 2.21 ppm Cs), with three >99th percentile (1.94
to 2.21 ppm Cs).
- The seven samples are also noted to be highly elevated in
tantalum with results ranging between 0.6 and 0.9 ppm Ta.
The presence of highly anomalous concentrations of lithium,
caesium and tantalum from samples collected within the same water
body by the OGS suggest a nearby mineralised source, and therefore
the Project is considered by the Company to be highly prospective
for LCT Pegmatite occurrences.
Fig.1 - North Wind Lithium Project Overview Map
References
1: Company announcement, Acquisition of Authier North Lithium Project, 12 July 2023
(
https://www.londonstockexchange.com/news-article/POW/acquisition-of-authier-north-lithium-project/16038121
)
2: United States Geological Survey, Scientific Investigations
Report 2010-5070-O, Mineral-Deposit Model for
Lithium-Cesium-Tantalum Pegmatites, 2017.
( https://pubs.usgs.gov/sir/2010/5070/o/sir20105070o.pdf )
3: Company announcement, New Lithium Project - Ontario, Canada, 25 November 2022
(
https://www.londonstockexchange.com/news-article/POW/new-lithium-project-ontario-canada/15731851
)
4: Ontario Geological Survey Open File Report 6352: Cundari,
R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P.,
Pettigrew, T.K., 2019, Report of Activities, 2018 Resident
Geologist Program.
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
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
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
BlytheRay (PR Advisors) + 44 (0) 20 7138 3204
Tim Blythe
Megan Ray
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (AIM:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects.
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
grow the Company, or may be returned to shareholders through share
buy backs, dividends or in-specie distributions of assets.
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