TIDMPOW
RNS Number : 6592O
Power Metal Resources PLC
02 February 2023
2 February 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Athabasca Basin - Strategic Uranium Properties Staked
Power Metal Acquires via Staking the Strategic Haresign Bay and
Kernaghan Uranium Properties
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces an update concerning its
uranium property portfolio focused on the Athabasca Basin area in
Saskatchewan, Canada.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"The uranium acquisitions by staking announced today are a
further leap forward for Power Metal's strategic uranium interests
in and surrounding the prolific Athabasca Basin located in northern
Saskatchewan, Canada.
The two new properties now secured are adjacent to and largely
surrounded by major uranium companies and they demonstrate
significant uranium prospectivity with geology considered by the
Company to be analogous to major producing mines and other uranium
deposits within the Athabasca Basin.
Power Metal started the move to build a uranium exploration
business in September 2021 and we believe we are now in a
particularly strong position. Our intentions do not stop here, with
plans to further expand our uranium focused interests where
suitable opportunities are identified.
Uranium has a strong following in capital markets and recently
the spot uranium price has moved again above USD$50/lb. With the
world dynamic shifting strongly in favour of nuclear power
generation we believe that Power Metal should continue this push to
build its uranium exploration and development business interests in
the London financial markets."
HIGHLIGHTS:
-- All claims were acquired by direct mineral claim staking by
the Power Metal technical team. They were acquired during the most
recent Mineral Administration Registry Saskatchewan ("MARS")
electronic registry system claim reopening on 31 January 2023. The
staking acquisitions represent some of the most significant
additions to the Company's uranium portfolio. Further information
on the staking process can be found in the further information
section below.
-- The newly acquired Haresign Bay uranium Property ("Haresign
Bay") covers a total area of 3,189.2-hectares (31.89km(2) ) located
35km south of the Athabasca Basin. Haresign Bay is surrounded by
claims held by uranium focussed companies F3 Uranium Corp, Baselode
Energy Corp, CanAlaska Uranium Ltd and Skyharbour Resources
Ltd.
-- The newly acquired Kernaghan uranium Property ("Kernaghan")
covers a total area of 4,566.2-hectares (45.66km(2) ) within the
northeastern edge of the Athabasca Basin. Kernaghan is bordered on
three sides by claims held by uranium focussed companies including
Standard Uranium Ltd., IsoEnergy Ltd., and Purepoint Uranium Group
Inc.
-- During the most recent claim reopening, Power Metal also
staked an additional 1,982-hectare (19.82km(2) ) claim area
bordering the western extension of its Thibault Lake uranium
Property (the "Extension"). Significantly, the Extension covers a
historical showing which returned a trenching result of 1.09% U(3)
0(8) over 10.7m, greatly increasing the overall prospectively of
the extended Thibault Lake uranium Property. (2)
-- With the addition of the Kernaghan and Haresign Bay uranium
properties, as well as the additional staking at Thibault Lake, the
Power Metal Athabasca uranium portfolio now consists of fourteen
properties, including two conditional disposals(1) , with a
combined total area of 940km(2) .
FURTHER INFORMATION
Mineral Claim Staking Process
The mineral claims constituting the Haresign Bay and Kernaghan
Uranium Properties as well as the Thibault Lake Extension were
acquired directly through the Mineral Administration Registry
Saskatchewan ("MARS") electronic registry system.
Where a previous claim owner is unable to satisfy the claim
maintenance requirements, that ground is reopened to third party
staking at a set time each month. Select reopening's are often
highly competitive with many parties attempting to acquire the
newly available land.
The total cost of staking was CAD$5,842.34. The newly staked
licences come with a two-year term with no minimum spend
requirement and which can then be extended for subsequent years by
spending a minimum of CAD$146,059 per annum.
The Haresign Bay Property
Haresign Bay is located 43km south of Cameco Corporation's Key
Lake Uranium Mine which is the third largest deposit within the
Athabasca Basin - with an average mineable grade of just over 2%
U(3) O(8) .(1) Haresign Bay is located 35km south of the Athabasca
Basin, along the Key Lake trend, which is defined by a cluster of
northeast-southwest trending electromagnetic conductors which
extend to the northeast over the Key Lake Mine. The Key Lake trend
is a defining geophysical and geological trend within the Athabasca
Basin, and Haresign Bay represents a significant position held
within this important uranium-rich corridor.
The Upper Roberta Lake Target ("Upper Roberta Lake" or the
"Target") is located in the southwestern part of the Haresign Bay
Property and is defined by a gravity low anomaly which is
coincident with elevated Radon(222) -in-lake water results. This
Target area is further intersected by multiple electromagnetic
conductors of part of the Key Lake Trend. Upper Roberta Lake
represents a highly compelling target for future work.
The Kernaghan Property
Kernaghan is located within the prolific Athabasca Basin
approximately 13km from the Basin's edge. Based on nearby
borehole's drilled by Denison Mines Corp., the sandstone-basement
unconformity on the Property is expected to be at around 100m
depth.
The Kernaghan Property covers multiple anomalous Radon(222)
-in-lake water results which are oriented within a
northeast-southwest trending belt. This trend is coincident with a
magnetic low feature. Kernaghan represents the Company's third
property which is located entirely within the Athabasca Basin.
Thibault Lake West Extension
The Extension covers an additional four Saskatchewan Mineral
Deposit Index ("SMDI") points. These SMDI points cover multiple
high-grade uranium showings including a north trending zone of
strong uranium mineralisation from which historic trenching
returned 10.7m of 1.09% U(3) 0(8) .(2) Several other high-grade
uranium showings are covered by the Extension including grab and/or
channel samples which returned 4.8%, 1.75%, 0.71%, and 0.66% U(3)
0(8) .(3,4)
Next Steps
The Company is preparing fact sheets which will include further
information and maps for newly acquired staking. These will be
released to the market once ready. Furthermore, detailed data rooms
are being prepared.
URANIUM PROPERTIES - HOLDING STRUCTURE
Power Metal has a 100% 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.
The Power Metal Canada Uranium Property Map is available to view
at the following link:
https://www.powermetalresources.com/power-metal-canada-uranium-map/
Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property
Holdings
Project Licence ID Area Area
(Hectare) (km(2) )
Clearwater Uranium
Property MC00015079 1,110 11.1
-------------------------- ------------ ----------- -----------
MC00015083 563 5.63
--------------------------------------- ----------- -----------
MC00015082 3,191 31.91
--------------------------------------- ----------- -----------
MC00015151 760 7.6
--------------------------------------- ----------- -----------
MC00015646 761 7.61
--------------------------------------- ----------- -----------
MC00015658 1,541 15.41
--------------------------------------- ----------- -----------
Tait Hill Uranium
Property MC00015078 1,576 15.76
-------------------------- ------------ ----------- -----------
MC00015081 968 9.68
--------------------------------------- ----------- -----------
MC00015153 1,530 15.3
--------------------------------------- ----------- -----------
MC00015152 1,886 18.86
--------------------------------------- ----------- -----------
MC00015647 725 7.25
--------------------------------------- ----------- -----------
MC00015648 1,129 11.29
--------------------------------------- ----------- -----------
MC00016158 3,242 32.42
--------------------------------------- ----------- -----------
Thibault Lake Uranium
Property MC00015077 2,206 22.06
-------------------------- ------------ ----------- -----------
MC00015659 2,195 21.95
--------------------------------------- ----------- -----------
AC00018709 1,982 19.82
--------------------------------------- ----------- -----------
Soaring Bay Uranium
Property MC00015080 1,255 12.55
-------------------------- ------------ ----------- -----------
MC00015155 3,375 33.75
--------------------------------------- ----------- -----------
MC00015874 748 7.48
--------------------------------------- ----------- -----------
MC00015875 2,529 25.29
--------------------------------------- ----------- -----------
Cook Lake Uranium
Property MC00015212 984 9.84
------------ ----------- -----------
E-12 Uranium Property(5) MC00015213 1,323 13.23
------------ ----------- -----------
Reitenbach Uranium
Property(6) MC00015214 2,135 21.35
-------------------------- ------------ ----------- -----------
MC00015474 1,235 12.35
--------------------------------------- ----------- -----------
MC00015655 4,570 45.7
--------------------------------------- ----------- -----------
MC00015656 5,322 53.22
--------------------------------------- ----------- -----------
MC00015657 886 8.86
--------------------------------------- ----------- -----------
MC00015824 528 5.28
--------------------------------------- ----------- -----------
MC00016155 1,333 13.33
--------------------------------------- ----------- -----------
Reindeer Lake MC00015522 3,336 33.36
-------------------------- ------------ ----------- -----------
Porter Lake MC00015561 5,656 56.56
------------ ----------- -----------
MC00015562 5,198 51.98
--------------------------------------- ----------- -----------
Old Woman Rapids MC00015563 4,851 48.51
------------ ----------- -----------
MC00015564 5,063 50.63
--------------------------------------- ----------- -----------
MC00015565 3,044 30.44
--------------------------------------- ----------- -----------
Durrant Lake AC00018000 5,866 58.66
------------ ----------- -----------
Badger Lake MC00016253 1,671 16.71
------------ ----------- -----------
Haresign Bay AC00018692 3,189 31.89
------------ ----------- -----------
Kernaghan AC00018694 4,566 45.66
------------ ----------- -----------
Total Licence Holding Area 93,998 939.98km(2)
----------- -----------
NOTES AND REFERENCES
1:
https://www.cameco.com/businesses/uranium-operations/canada/mcarthur-river-key-lake
2:
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1535
3:
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1536
4:
https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1534
5: The E-12 Property, currently included as one of the 14
uranium portfolio properties, is subject to a conditional disposal
to Teathers Financial PLC for a consideration of GBP250,000. Work
is ongoing to complete that transaction. See Company announcement
released on 4 November 2022.
6: The Reitenbach Property, currently included as one of the 14
uranium portfolio properties, is subject to a conditional disposal
to Teathers Financial PLC for a consideration of GBP360,000. Work
is ongoing to complete that transaction. See Company announcement
released on 8 August 2022.
Glossary:
Electromagnetic Conductors: In the Athabasca Basin area, uranium
mineralisation is often associated with graphitic fault conductors
within the crystalline basement. Graphite and faults are more
conductive than the surrounding rocks, and thus offer a proven
geophysical target for future exploration.
Radon(222) anomaly: Radon-222 anomalism can be an important
indicator for uranium mineralisation as Radon-222 is a daughter
product of the uranium-235 decay chain. As a naturally occurring
radioactive gas it can be dissolved in water, providing a possible
vector towards sites of uranium mineralisation. Due to Radon-222's
short half-life (3.8 days) occurrences of strong radon anomalism
commonly suggest a local source to the causative uranium
mineralisation.
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 - Background
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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