TIDMPOW
RNS Number : 0706X
Power Metal Resources PLC
18 December 2023
18 December 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Athabasca Region - Additional Priority Uranium Targets
Magnetic Surveys Highlight Multiple Priority Targets at Cook
Lake and Clearwater
Power Metal Resources PLC (AIM:POW), the London listed
exploration company with a global project portfolio, announces key
developments to its currently 100% owned uranium business, covering
a combined 1,012 square kilometres ("km(2) ") across 17 properties
(collectively the "Uranium Portfolio") in and around the prolific
Athabasca Basin in Saskatchewan, Canada. Results from the Unmanned
Aerial Vehicle ("UAV") magnetic geophysics surveys covering the
Clearwater and Cook Lake Projects are reported herein with multiple
high-priority targets for future exploration generated from this
modern surveying technique.
The 2023 uranium focussed exploration programme is the largest
undertaken by the Company and covered 10 properties with a diverse
range of modern exploration technologies applied to identify
significant prospective uranium targets.
The results to date have been encouraging and prior to today's
announcement, significant prospective uranium anomalies have been
confirmed at four properties as detailed below:
Date of Property Exploration Announcement Link
RNS Findings
N/A Kernaghan To be disclosed Results upcoming
("TBD") -
electromagnetic
geophysics
("EM")
survey complete
----------- ---------------- -----------------------------------------------------------------------------
N/A Durrant TBD - EM survey Results Upcoming
Lake complete
----------- ---------------- -----------------------------------------------------------------------------
N/A Reitenbach TBD - airborne Results Upcoming
magnetic survey
complete
----------- ---------------- -----------------------------------------------------------------------------
N/A E-12 TBD - UAV Results Upcoming
magnetic
geophysics
survey
complete
----------- ---------------- -----------------------------------------------------------------------------
18/12/23 Clearwater Two new Herein
magnetic
targets
----------- ---------------- -----------------------------------------------------------------------------
18/12/23 Cook Lake Two new Herein
magnetic
targets
----------- ---------------- -----------------------------------------------------------------------------
20/11/23 Soaring Geochemical https://www.londonstockexchange.com/news-article/POW/exploration-update-sign
Bay results ificant-uranium-targets/16215573
(soil & radon
gas) expands on
two known
targets.
----------- ---------------- -----------------------------------------------------------------------------
20/11/23 Tait Hill Geochemical https://www.londonstockexchange.com/news-article/POW/exploration-update-sign
results ificant-uranium-targets/16215573
(soil & radon
gas) highlights
multiple highly
prospective
targets.
----------- ---------------- -----------------------------------------------------------------------------
26/09/23 Badger Hyperspectral https://www.londonstockexchange.com/news-article/POW/badger-lake-uranium-pro
Lake analysis ject-update/16140722
uncovers
significant
anomaly.
----------- ---------------- -----------------------------------------------------------------------------
08/09/23 Perch Significant https://www.londonstockexchange.com/news-article/POW/helium-anomaly-discover
River helium ed-on-perch-river/16115743
anomaly
discovered. Further Results Upcoming
Geochemical
results
pending.
----------- ---------------- -----------------------------------------------------------------------------
Today, the Company announces that exploration conducted at a
further two properties has also identified multiple significant
uranium targets, further details of which are highlighted
below.
The 2023 exploration programme continues with additional
exploration findings awaited from Kernaghan, Durrant Lake,
Reitenbach and E-12 properties.
Sean Wade, Chief Executive Officer of Power Metal Resources plc,
commented:
"We believe our 2023 Athabasca exploration programme has already
added considerable value to our extensive Athabasca uranium focused
properties.
At a time when the uranium price is entering a major bull market
phase, and interest in junior explorers with attractive projects in
the Athabasca Basin grows, we find ourselves in an enviable
position.
We anticipated positive exploration findings, given the work
undertaken by our team to carefully select properties for staking
based on extensive historical exploration data and with a view to
the application of the latest geological techniques. However, the
scale of positive results has been, in our opinion, quite
remarkable.
Further exploration results are pending, which will be factored
into our ongoing work to crystallise value for shareholders,
demonstrated recently by the progress we have made with the planned
IPO of Teathers Financial Plc (to be renamed Uranium Energy
Exploration) . We will also incorporate this work into the forward
exploration plans for our retained Athabasca portfolio.
These are exciting times for the Company and my personal thanks
are due to our technical team, contractors and consultants for the
delivery of this continual stream of encouraging findings."
HIGHLIGHTS
Clearwater
-- The recent UAV magnetic geophysics survey, which was focussed
on the northeastern portion of the Clearwater project, has
identified the presence of multiple 1(st) and 2(nd) order magnetic
lineament structures which are considered by the Company to be
prospective for structurally related vein-type uranium
mineralisation as typified in the Beaverlodge district deposits of
northern Saskatchewan ("Beaverlodge Type" mineralisation).
-- The survey significantly expanded the size of a previously
identified target (the 'Toots Lake Target') by approximately 800
metres ("m") as well as identifying a brand-new target area now
termed the 'Nesbitt Fault Target'.
Cook Lake
-- This UAV survey represents the first magnetic survey ever
completed over the Cook Lake project and successfully delineated
two priority target areas which are associated with newly
identified magnetic structural lineaments which are considered by
the Company to be coincident with elevated Uranium (U)-in-lake
sediment results, as well as historical radiometric anomalies.
FURTHER INFORMATION
Following receipt of the UAV magnetic survey data, Power Metal
technical staff completed a detailed interpretation of the data,
the results of which are presented below.
Clearwater Project ("Clearwater") - Geology & Previous
Exploration
The Clearwater Project is considered by the Company to be
prospective for Beaverlodge Type uranium deposits. Such deposits
are typically associated with faults and shear structures that
acted as conduits for uranium bearing hydrothermal fluids, and
which focussed the deposition of the uranium mineralisation. These
faults and the fluids that travelled along them, acted to alter the
mineralogy of host rocks and thus changed the magnetic properties
of the host geology.
Historical reports highlight the major faults across the
Clearwater Project, but their precise location, and the geology
associated with them was unknown. Prior fieldwork on the Clearwater
Project by Power Metal Resources identified up to 1,112 parts per
million ("ppm") triuranium octoxide (U(3) O(8) in rock samples
collected during surface prospecting. Whilst historical mine trials
and workings were known, it was considered that uranium
mineralisation was likely to be buried, and thus may leave minimal
surface trace. Therefore, an understanding of a project's
structural geology is essential to determining precise locations
which may be prospective for significant accumulations of uranium
mineralisation.
In September 2023, a UAV magnetic geophysics survey was carried
in the northeastern part of the Clearwater project where the
greatest density of historical uranium occurrences had been found.
A total of 270.47 line-km were flown at Clearwater, on a 50m line
spacing, at an elevation of 50m above the ground by Discovery
International Geophysics Inc., of Saskatoon, Saskatchewan.
Clearwater Project - UAV Results
Toots Lake Target
The results of the UAV survey show the presence of multiple
northeast-southwest oriented trending faults and fractures within
granitic units in the northwest of the survey area; in addition, a
significant magnetic low (potentially related to hydrothermal
alteration) was identified. Coincident with this area, uranium
mineralisation of up to 0.195% (1950ppm) U(3) O(8) over 0.7m was
intersected during limited historical drilling. This target has
grown in size considerably (at least 800m along strike) with the
identification from the 2023 survey of two prominent
northeast-southwest oriented magnetic lineaments.
Nesbitt Fault Target
In the southeast part of the survey area, multiple
northeast-southwest oriented significant faults were identified
which are coincident with a similar gravity low to the Toots Lake
Target. This newly identified target area has been subject to
minimal historical exploration but it is 1km to the south of the
Don Henry Uranium Mine, a historic (1955) trial mine that was
centred on a uranium rich vein with a length of 150 feet ("ft")
(45.7m) and a width of 1 to 3.5ft (0.3 to 1.1m). The limited
historical work along the Nesbitt Fault has identified evidence of
hydrothermal alteration, and grab samples of up to 0.13% U(3) O(8)
(1,300ppm) have been recorded from a 1970s exploration
programme.
Cook Lake Project - Geology and Rationale
A significant challenge to fieldwork on and around the Cook Lake
Project is the minimal outcrop - with historical exploration giving
estimates of around 95% cover. Despite this cover, the property is
host to 27 radiometric anomalies, four electromagnetic conductors
and multiple elevated U-in-lake sediment results. The abundance of
possible targets makes selecting priority areas to complete
detailed fieldwork highly challenging.
Cook Lake is considered by Power Metal to be prospective for
pegmatite-hosted uranium as well as intrusive related and basement
hosted unconformity related uranium - the latter of which is often
associated with major faults. As a result, Power Metal elected to
complete a UAV magnetic survey across the project. A total of
119.18 line-km were flown at Cook Lake, on a 100m line spacing, at
an elevation of 50m above the ground by Discovery International
Geophysics Inc. of Saskatoon, Saskatchewan.
The 2023 UAV survey identified two significant new target areas
termed the 'Central Target' and the 'Northern Target' which are
further detailed below.
Cook Lake Project - UAV Results
Central Target
The Central Target is associated with a strong magnetic low
extending over a strike length of four kilometres which is
coincident with eight radiometric anomalies. This target is also
coincident with an east-west trending electromagnetic ("EM")
geophysical conductor further indicating the possibility of
unconformity related uranium mineralisation within this target
area.
Northern Target
The Northern Target is associated with multiple moderate
magnetic low features which are coincident with an airborne
radiometric high anomaly (44 counts per second) and also coincident
with a 7km long EM anomaly all coincident with the highest
U-in-lake sediment anomaly on the project - at 25.6ppm U(3) O(8)
.
The identification of these two targets for future fieldwork,
neither of which have received significant attention in the past,
will allow for efficient and targeted field campaigns on the Cook
Lake uranium project going forward.
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.
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 (LON: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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