TIDMPOW
RNS Number : 0465M
Power Metal Resources PLC
16 September 2021
16 September 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Canadian Lithium Project - Exploration Update
Inaugaral Exploration Commences on the Authier North Lithium
Property
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces the commencement of its
Phase I work programme on the Authier North Lithium Property,
located in the prolific Val D'Or mining camp in Quebec, Canada
("Authier North" or the "Property").
The Authier North Lithium Property interest is held by Power
Metal's wholly-owned Canadian subsidiary Power Metal Resources
Canada Inc. ("Power Canada") which is focused on strategic energy
metal opportunities within Canada's top mining jurisdictions.
Power Canada is earning-in to a 100% interest in Authier North
and further information in respect of this earn-in transaction is
provided in the Company's announcement dated 16 July 2021 in the
link below:
https://www.londonstockexchange.com/news-article/POW/agreement-canadian-lithium-properties/15061434
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"Following on from yesterday's news marking Power Canada's move
into uranium exploration, today we confirm the launch of inaugural
exploration on the Authier North lithium property.
Authier North is a strategic lithium interest situated adjacent
to Sayona Mining's Authier Lithium Project in Quebec, Canada, where
a substantial Lithium Oxide Reserve has been delineated.
The geological proposition is that the lithium mineralisation
may potentailly extend into the Power Canada Authier North
Property, and if so, that there is potential for a lithium
discovery.
Because of this geological potential Power Metal have been eager
to accelerate exploration and so we announce this first programme
today, only two months after the Authier North transaction was
originally announced to the Market.
We look forward to updating the market with the findings from
this important work."
Authier North Property Location
The Authier North Property is highlighted on a map held on the
Company's website which may be viewed on the following link:
https://www.powermetalresources.com/quebec-lithium-properties/
The Phase 1 Exploration Work Programme
Very little historic work has been completed on the Property,
including no known work completed since the discovery and resource
declaration at the nearby Authier Lithium Project held by Sayona
Mining Limited ("Sayona").
During the 2021 Phase I programme, prospecting and mapping will
be completed by a senior geologist with extensive Quebec
lithium-pegmatite exploration experience.
As part of the programme at least 180 soil samples will be
collected from four separate grids within the Property.
Geological Rationale for the Work Programme
The soil sampling grids have been oriented within strategic
areas of the Property, including high-resolution coverage over the
east-west oriented volcanic rock packages which hosts Sayona
Mining's Authier Lithium Project less than 2.5km to the west along
strike.
Soil sampling will also be completed to the north of the Authier
Lithium Project where the extension of the lithium-bearing
pegmatite is postulated to continue at depth under cover.
Programme Outcomes/Deliverables
The work programme currently underway will satisfy the first
year work requirements as outlined in the Authier North earn-in
agreement.
The final deliverable by the in-country geological consultants
will also include a technical fieldwork report delivered in a
NI43-101 compliant form.
Lithium Commodity Attractiveness
The price of spodumene (lithium bearing mineral found on
neighbouring Authier Lithium Project) has surged over 140% this
year to $990/t USD on the back of stronger than expected electric
vehicle demand.(1)
(1)
https://www.reuters.com/business/autos-transportation/surge-electric-vehicle-sales-power-lithium-prices-shortages-loom-2021-09-13/
Authier North Property - Background
The Authier North Property consists of fifteen (15) mineral
claims covering an area of approximately 560-hectares and is
considered to be prospective for lithium-pegmatites and base metal
mineralisation.
Very little historic exploration has been completed on the
Authier North Property, with reports of five short boreholes (four
of which returned elevated lithium and nickel assays) and only 4
rock samples which returned strongly anomalous chromium and nickel
results (up to 0.42% Cr(2) 0(3) (Chromium (III) Oxide), and 0.21%
nickel). The reports related to drilling conducted in 1955(1) and
1974(2) undertaken by Lyndhurst Mining Limited and Cominco Limited.
No reliance should be placed on this historical exploration as it
is not known whether the historical exploration results noted above
are reliable.
The Authier North Property shares an extended claim border with
Sayona's Authier Lithium Project which hosts a JORC (Joint Ore
Reserves Committee) compliant Total Reserve of 12.1Mt at 1.0% Li(2)
O (Lithium Oxide). The deposit is less than 700m from the shared
claim boundary.
Sayona published a Definitive Feasibility Study ("DFS" reported
11 November 2019) on their flagship Authier Lithium Project. This
DFS highlighted a net present value (discount factor 8%) of CAD$216
million and a pre-tax internal rate of return at 33.9%.
Additionally, in January 2021, Soyona announced a strategic
partnership and offtake agreement with Piedmont Lithium Limited
(ASX:PLL, Nasdaq:PLL) which includes a 25% ownership stake in
Sayona Quebec (a wholly owned subsidiary of Sayona Mining), as well
as 50% (60,000 tpa) offtake agreement for future production from
the Authier lithium project. Sayona expects full commercial
production of spodumene concentrate to commence in 2023.
Soyona Mining's Authier lithium project consists of a spodumene
pegamatitic intrusion which dips to the north and the Company
believe that this may extend into the Authier North Property.
References:
1:
https://gq.mines.gouv.qc.ca/documents/EXAMINE/GM03267/GM03267.pdf
2:
https://sigeom.mines.gouv.qc.ca/signet/classes/I1103_index?format=COMPLET&type_reqt=U&mode=NOUVELLE&l=A&entt=LG&numr_utls=4815852&alias_table_crit=EXADOC&mnen_crit=NUMR_RAPR&oper_crit=EGAL&valr_crit=GM%2030868
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, 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.
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