TIDMPOW
RNS Number : 8927L
Power Metal Resources PLC
15 September 2021
15 September 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Strategic Uranium Opportunity - Athabasca Basin
Power Metal Acquires by Staking Four 100% Owned Uranium
Properties in Saskatchewan's Athabasca Basin in Canada
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces the acquisition by claim
staking of four 100% owned uranium exploration properties (the
"Properties") comprising 7 licences surrounding the Athabasca
Basin, located in northern Province of Saskatchewan, Canada.
The claim staking was completed through Power Metal's
wholly-owned Canadian subsidiary, Power Metal Resources Canada Inc
("Power Canada").
The Properties
The four 100% owned Properties cover a combined 10,869-hectares
(109km(2) ) giving Power Canada a strong foothold in the prolific
Athabasca Basin (for property details see table 1 below).
The properties include the Clearwater Uranium Property
("Clearwater"); Tait Hill Uranium Property ("Tait Hill"); Thibaut
Lake Uranium Property ("Thibaut Lake"); and the Soaring Bay Uranium
Property ("Soaring Bay").
The Location
All four Properties are surrounding the prolific Athabasca
Basin, in northern Saskatchewan, Canada which is home to some of
the world's largest and highest grade uranium mines including
Cameco Corporation's Cigar Lake and McArthur River Uranium
Mines.
Saskatchewan was recently ranked the 3(rd) best mining
jurisdiction in the world in Fraser Institute's 2020 rankings.
The Staking Process
The Properties were staked after detailed analysis of several
provincial geological databases including airborne magnetics,
government bedrock mapping, as well as publically available
assessment report files and the mineral deposits index (a database
of 6143 unique localities throughout the province with known
mineral occurrences, separated by commodity).
The claims have been registered with the Mineral Administration
Registry Saskatchewan and the total cost of claim staking was
C$6,521. The claims are valid for 2 years and there is no minimum
spend commitment required.
As the Properties were acquired through staking, Power Canada
will have a 100% interest with no outstanding royalties or
encumbrances.
Power Canada Rationale
The acquisition of the uranium exploration interests announced
today continues to build upon Power Canada's strategic energy metal
business which is currently highlighted with our Authier North
project comprising a strategic land holding immediately north of
Sayona Mining Limited's Authier Lithium project located in Quebec,
Canada.
A further update is expected shortly from our Authier North
property with respect to the commencement of an inaugural ground
exploration programme.
The Commodity
Uranium is an important global commodity as it plays a crucial
role in nuclear power generation, widely considered to be a
efficient ultra low-carbon alternative to traditional thermal coal
power generation, and there has for some time been a building
supply/demand dynamic in the uranium commodity market, meaning a
diversified natural resource business such as Power Metal, should
consider participation.
Recent tightening of the spot U(3) 0(8) futures market has led
to a significant increase in spot price up to a high of 44.9$/lb
USD, representing a greater than 40% increase compared to
mid-August 2021.(1)
The recent accelerated interest in the sector caused Power
Metal, through Power Canada, to act quickly to secure its strategic
position.
(1)
https://markets.businessinsider.com/commodities/uranium-price
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented:
"Power Metal has been reviewing uranium opportunities across
three different continents for some time, and today we make our
first important public step into the uranium commodity space.
The Properties have been selected after careful review and are
strategically located where there is material evidence of uranium
prospectivity as demonstrated by historic exploration reports as
well as through various uranium focused government databases.
The acquistion of these uranium properties through staking
represents an important building block in Power Canada's growing
strategic energy metal business."
PROJECTS OVERVIEW
Figure 1, which highlights the location of Power Canada's
uranium portfolio including the Clearwater Uranium Property, Tait
Hill Uranium Property, Thibaut Lake Uranium Property, and the
Soaring Bay Uranium Property can be viewed on the Company's website
through the following link:
https://www.powermetalresources.com/power-canada-uranium-property-map/
Clearwater Uranium Property Overview
-- The Clearwater Uranium Property is located approximately 10km
northwest of Uranium City, Saskatchewan, near the northwestern
border of the prolific Athabasca Basin; it shares an extended claim
border with Australian listed 92 Energy Ltd (ASX: 92E).
-- Clearwater covers 4,864-hectares (c. 49km(2) ) and is centred
around 13 uranium mineral deposit index points which are located
along a roughly 20km strike-length of uranium rich mineralistion
hosted within uranium (U) - thorium (Th) - molybdenum (Mo) - rare
earth element (REE) - rich pegmatites
-- Several uranium-rich occurrences have been discovered within
Clearwater including channel sampling that averaged 0.34% U(3) O(8)
over 7.9m, grab samples including 0.55% U(3) O(8) , as well as
several other occurrences that returned very-high scintillometer
readings in excess of 15,000 counts per second (CPS) - which is a
measure of the radioactivity of a rock.
Tait Hill Uranium Property Overview
-- The Tait Hill Uranium Property is located approxiatetly 40km
northwest of Stony Rapids, Saskatchewan, near the northern border
of the prolific Athabasca Basin.
-- Tait Hill covers 2544-hectares (c. 25km(2) ) and is centered
around 13 uranium mineral deposit index points which are hosted
within U-Th-Mo-REE-rich pegmatites.
-- A highlight rock sample from Tait Hill include CH158 which
returned 0.78% U(3) O(8) , 895ppm Thorium (Th), 9,235ppb Zirconium
(Zr); a soil sampling programme returned exceptionally high results
for uranium and zinc which included samples ranging from 460 -
13,200ppb (1.3%) U, and up to 22,700ppb (2.3%) Zinc (Zn).
-- Prospecting and ground-scintillometer surveys outlined two
main targets at Tait Hill including, 1) low-grade, high-tonnage
uraniferous pegmatites, 2) localised high-grade zones with
uranium-enrichment located along a contact zone between pegmatites
and a biotite-gneiss unit.
Thibaut Lake Uranium Property Overview
-- The Thibaut Lake Uranium Property is located approximately
35km northwest of Uranium City, Saskatchewan, near the northwestern
border of the prolific Athabasca Basin.
-- Thibaut Lake covers 2,206-hectares (c. 22km(2) ) and is
centered around 8 uranium mineral deposit index points which are
located along a roughly 6km strike-length of uranium-rich
mineralisation hosted within pitchblende-rich (uranium-oxide
mineral, chemical symbol:U0(2) ) porphyritic granites.
-- Several trenches and rock samples have returned high-grade
uranium-rich mineralisation including:
o A 10.7m long trench returned individual assays up to 7.95%
U(3) 0(8) , with an average of 1.09% U(3) 0(8) along its extent
o Highlight samples obtained across the showings include assays
up to 3.4% U(3) 0(8) , 3.85% U(3) 0(8,) and 2.44% U(3) 0(8) .
Soaring Bay Uranium Property Overview
-- The Soaring Bay Uranium Property is located approximately
17km west of highway 914, immediately south of the prolific
Athabasca Basin.
-- Soaring Bay covers 1,255-hectares (c. 13km(2) ) and is
centered around 1 uranium, and 2 base-metal mineral deposit index
points which cover a 4km strike-length of uranium mineralisation
concentrated along a geological contact zone between a pegmatite
unit and granite gneiss.
-- Several highlight grab samples returned significant uranium
mineralisation including 0.57% U(3) 0(8) , 0.55% U(3) 0(8) , 1.34%
U(3) 0(8) , as well as copper and thorium enrichment up to 0.46% Cu
and 0.46% Th respectively.
NEXT STEPS
The Company is preparing all available historic data on
Properties for publication, and will make an announcement with
further details in the coming weeks, which will also include the
company's next steps with the newly acquired Properties.
Table 1: Power Metal Canada Inc. Athabasca Basin Property
Holdings
Licence
Project ID Size - Hectare Granted
Clearwater Uranium
Property MC00015079 1,110 Yes
----------- ---------------------------- --------
MC00015083 563 Yes
----------- ---------------------------- --------
MC00015082 3,191 Yes
----------- ---------------------------- --------
Tait Hill Uranium Property MC00015078 1,576 Yes
----------- ---------------------------- --------
MC00015081 968 Yes
----------- ---------------------------- --------
Thibaut Lake Uranium
Property MC00015077 2,206 Yes
----------- ---------------------------- --------
Soaring Bay Uranium
Property MC00015080 1,255 Yes
----------- ---------------------------- --------
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 and base 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.
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