TIDMPOW
RNS Number : 7203N
Power Metal Resources PLC
26 September 2023
26 September 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Badger Lake Uranium Project Update
Power Metal Resources PLC (AIM:POW), the AIM listed metals
exploration and development company, is pleased to announce the
escalation of a high priority uranium target based on a remote
sensing study commissioned for the 100% owned Badger Lake Uranium
Project ("Badger Lake" or the "Project") located within the
Athabasca Basin, Saskatchewan, Canada.
Highlights
-- Hyperspectral satellite data analysis ("Hyperspectral
Analysis") study has identified distinct similarities between
Badger Lake and the Arrow Deposit (with a Total Measured and
Indicated Resource of 256.7 Mlb U(3) O(8) (1) ) owned and operated
by Nexgen Energy Ltd., which is located circa 30km northwest of the
Project.
-- The Hyperspectral Analysis has focused on establishing
spectral signatures associated with alteration, gas emissions and
apparent electric flux properties over the known basement-hosted,
vein type uranium deposits of Arrow and Arrow South ("Arrow") in
order to generate potential targets for exploration at nearby
Badger Lake.
-- Utilising European Space Agency Sentinel-2 visible to
near-infrared ("VNIR") and short-wave infrared ("SWIR") satellite
datasets and Japanese ALOS-1 Synthetic Aperture Radar ("SAR")
satellite data a direct comparison with Arrow has generated 30
spectral targets for investigation at Badger Lake.
-- At the Arrow deposit, resistivity geophysics anomalies
associated with the mineralisation coincide with distinct
Dielectric Constant ("DC") readings estimated from the SAR
backscatter data. Similar level DC readings show a distinct 300m
wide DC anomaly for investigation in the east of Badger Lake.
-- Significantly, the Badger Lake DC anomaly is also coincident
with the distinct airborne electromagnetic ("EM") geophysics
anomaly (named EMO8) and associated northeast-southwest trending EM
conductor identified in a historical survey commissioned by COGEMA
Resources Inc in 2002; and in proximity to anomalous
Uranium-in-lake sediment results and a Very Low Frequency ("VLF")
Geophysical survey carried out in 1978.(2,3,4)
-- As a result of the above, the Company is looking to expedite
the planned high-resolution electromagnetic UAV survey over Badger
Lake.
Sean Wade, Chief Executive Officer of Power Metal Resources plc,
commented:
"It is thanks to the experience and skills of our in-house
technical team and their commissioning of hyperspectral analysis at
Badger Lake that has led to the discovery of yet another extremely
attractive exploration target within our Saskatchewan uranium
portfolio - further highlighting the quality of our 100% owned
uranium assets.
"This is a significant milestone for Power Metal and follows
closely on from the recently announced discovery of a significant
helium anomaly at Perch River.
"Shareholders are aware that we have work underway on ten of our
seventeen properties within and surrounding the Athabasca Basin in
Saskatchewan, Canada. Further updates across our portfolio are
expected in the near term.
"Given the rising price of the uranium commodity and the
increasing interest in uranium exploration juniors, we are
particularly excited about our progress and are very much looking
forward to the release of additional findings, when available, from
our active uranium exploration work programmes.
"These findings could not come at a better time for shareholders
and serve to highlight the huge potential value inherent in our
uranium portfolio and in the Power Metal business model more
generally."
Comparisons Between Arrow and Badger Lake
Power Metal commissioned Dr Neil Pendock, a highly respected
remote sensing consultant, to undertake the hyperspectral data
compilation and comparative processing study over Badger Lake and
the Arrow deposits.
Conductivity anomalies present strong targets for uranium
exploration within the Athabasca Basin as they can represent
graphitic lithologies, which are known to act as reductants for
uranium mineralisation, and thus host uranium mineralisation.
As shown on Figure 1, there are strong similarities between the
SAR data Dielectric Constant estimates at Arrow and those in the
east of Badger Lake . The Dielectric Constant is the measure of
relative permittivity of a material, it is the permittivity of that
material expressed as a ratio with the electric permittivity of a
vacuum.
Badger Lake also has a coincident magnetic anomaly and
geophysical conductor in the vicinity of the identified anomalous
Dielectric Constant levels, further enhancing it's
prospectivity.
A historical data compilation was completed over Badger Lake
with the results announced to the market on 5 October 2022(5) .
Importantly, many of the targets generated by that work are
strongly coincident with the DC anomaly now confirmed further
enhancing the prospectivity of this target area including:
-- The survey flown by FUGRO Airborne Surveys in 2002 on behalf
of Cogema Resources Inc., which led to the identification of a
bullseye GEOTEM (R) (EM08) anomaly as well as a northeast-southwest
trenching EM conductor, both of which are coincident with the DC
anomaly.(2)
-- VLF Geophysical survey carried out in 1978(4) identified two
anonymous areas, one of which is in close proximity the anomalous
DC area.
-- In addition, a 1981 survey(3) collected two anomalous and
elevated U-in-lake sediment results, which also had elevated
nickel, zinc and lead - all elements associated with unconformity
related uranium deposits. These two results are from a lake to the
southwest 'down ice' (i.e., the direction where glacially moved
sediments would be transported) of both the DC and VLF
anomalies.
SAR Dielectric Constant Estimation Overview
This estimate of relative electrical permittivity works by
comparing the polarisation of reflected or backscattered microwaves
that are emitted and collected by synthetic aperture radar
instruments onboard the Sentinel-1 and ALOS satellites as they
orbit above the earth. The comparison between the waves emitted and
received can be used to estimate dielectric constants for the
reflecting surface. The dielectric constants can be considered a
proxy of the 'conductivity' of the surface material at a specific
location.
This method has been tested in dry ground conditions on gold
deposits in Brazil, as well as extensively throughout South Africa
and may present an innovative aid to exploration in the Athabasca.
It cannot give the depth to the conductivity zone, which would
require further geophysical surveys, hence why Power is looking to
expedite the planned EM unmanned aerial vehicle (drone) survey over
Badger Lake.
Figure 1: Badger Lake Uranium Project, and Arrow Uranium Project
(Nexgen) Dielectric Constant
Badger Lake Uranium Project Overview
The Badger Lake Uranium Project covers an area of 16.71km(2)
within the prolific Athabasca Basin and 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 30km 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% U3O8
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.
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 (2) 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.
NOTES AND REFERENCES
1: Source: NexGen Energy Ltd: Arrow Deposit, Rook I Project,
Saskatchewan NI 43-101 Technical Report on Feasibility Study
(
https://s28.q4cdn.com/891672792/files/doc_downloads/2022/03/0000-BA00-RPT-0002_2-compressed.pdf
)
2: Source: COGEMA Resources Inc, Laurie Project Report on GEOTEM
Airborne EM and Magnetic Surveys, March, 2002 (74F10-0035R)
3: Source: Saskatchewan Mining Development Corporation, 1981,
Mirror River Project - 1981 Fieldwork (74F09-0031)
4: Source: Kerr Addison Mines Limited, 1978, Airborne
Electromagnetic Survey, Lloyd Lake Project Saskatchewan
(74F10-0013)
5: Power Metal Resources PLC company announcement, Uranium
Portfolio Update - Athabasca Basin, Canada, dated 5 October
2022
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xqg3g2w
)
6: Source: Titan Uranium, 2008, 2007 Diamond Drill Program
Meanwell Lake, Bishop I & Bishop II Projects (74F10-0049)
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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