Athabasca Basin - Strategic Uranium Project Staked

RNS Number : 0287Y

Power Metal Resources PLC

02 September 2022

 

2 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Athabasca Basin - Strategic Uranium Project Staked

Power Metal Acquires via Staking the Strategic Durrant Lake Uranium Property

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update concerning its uranium property portfolio focused on the Athabasca Basin area in Saskatchewan, Canada.

HIGHLIGHTS:

§ Durrant Lake Uranium Property ("Durrant Lake" or the "Property") acquired by direct Mineral Claim staking. The newly acquired claim covers a total area of 58.66km² within the eastern side of the Athabasca Basin and is bordered on three sides by claims held by uranium focussed companies Orano SA, Denison Mines Corp and ISO Energy Ltd.

§ Durrant Lake, which was staked directly by the Power Metal technical team, is the first uranium portfolio property to be situated within the confines of the prolific Athabasca Basin.

§ With the addition of Durrant Lake, the Power Metal Athabasca uranium portfolio now consists of eleven properties, including a conditional disposal¹, with a combined total area of 780km².

§ The Athabasca Basin hosts over seven past and current uranium operations including McArthur River, the world's largest high-grade uranium deposit and the Cigar Lake mine which was the world's top uranium producer in 2020.²

A map of the Durrant Lake Uranium Property location is available at the following website link: https://www.powermetalresources.com/durrant-lake-uranium-overview/

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented: 

"The Durrant Lake Uranium Property located within the Athabasca Basin, which hosts some of the world's highest grade uranium deposits, represents a significant addition to the Company's already sizeable Saskatchewan focused uranium portfolio. 

We look forward to providing further updates on developments across our Athabasca uranium interests in the near term."

FURTHER INFORMATION

Mineral Claim Staking Process

The Mineral Claim constituting the Durrant Lake Uranium Property was 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 becomes reopen to third party staking at a set time each month. At reopening, areas of high uranium prospectivity can become segmented as different parties compete to register Mineral Claims over the newly opened ground. In the case of the open ground covering the wider Durrant Lake area, Iso Energy Ltd acquired approximately 4.30 km² of the newly reopened ground, with Power Metal acquiring 58.66km², representing the vast majority of the newly available area (c. 62.96km²).

The cost of staking of the Property was Canadian $3,519.78. The newly staked licence comes with a two-year term with no minimum spend requirement and which can then be extended for subsequent years by spending a minimum of Canadian $87,990 per annum.

The Durrant Lake Property

The Durrant Lake Uranium Property is surrounded by ground held by major uranium operators and explorers including Orano SA, Denison Mines Corp (TSX: DNN) and Iso Energy Ltd (TSX-v: ISO).

The Hurricane Zone, which is part of the Iso Energy Ltd's 100% owned Laroque East property, is a 575m long by 75m across and up to 11m thick uranium deposit that is located less than 15km northeast of the Durrant Lake Uranium Property. The Hurricane Zone includes notable drill intercepts of up to 33.9% U₃O₈ over 8.5m, including 57.1% U₃O₈ over 5.0m.³

Property Geology

Geological reports highlight that the Property is underlain by around 200-300m of sandstone that sits unconformably over crystalline basement, which is logged as metasedimentary and intrusive lithologies of the Mudjatik Domain.

The unconformity 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% U₃O₈) , Cigar Lake (152.4 Mlb at 7.55% U₃O₈ ), Hurricane and Phoenix (60 Mlb at 19.1% U₃O₈) are located at, or in close proximity to this geological contact zone.

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 (Hectare)	Area (km2)
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
Thibaut Lake Uranium Property	MC00015077	2,206	22.06
	MC00015659	2,195	21.95
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	MC00015213	1,323	13.23
Reitenbach Uranium Property*	MC00015214	2,135	21.35
	MC00015474	1,235	12.35
	MC00015655	4,570	45.7
	MC00015656	5,322	53.22
	MC00015657	856	8.56
	MC00015824	528	5.28
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
Total Licence Holding Area		78,018	780 km2

*Reitenbach Property conditionally disposed to Teathers Financial PLC as announced 8 August 2022.

**Property acquisition announced on 25 July 2022 - licence transfers complete.

***Newly staked Property

NOTES AND REFERENCES

1:  The Reitenbach Property, currently included as one of the 11 uranium portfolio properties, is subject to a conditional disposal to Teathers Financial PLC for a consideration of £360,000. Work is ongoing to complete that transaction. See Company announcement of 8 August 2022.

2:  World Nuclear Association: https://world-nuclear.org/information-library/country-profiles/countries-a-f/canada-uranium.aspx

3:  IsoEnergy Ltd, Larocque East summary: https://isoenergy.ca/projects/larocque-east/

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)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme underway at 3 properties.  Continuing data analysis across the property portfolio.	Results from ground exploration including spectrometer analysis, sampling and mapping.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%#	Final preparations for the launch of K1-6 conductor target drilling and MLEM surveys over T1-6, T1-14, T1-3 and T2-3 targets.	Commencement of T1-6 drill programme, and findings therefrom and results from MLEM surveys.
Tati Project	Botswana	100%	RC drilling underway and previously sampling of mine dumps complete.	Review of mine dumps sampling, and processing potential.  Results from RC drill programme.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.  These interests are summarised in the table below:

Company	Status/Operations	Link
First Class Metals PLC	Investment - POW 28.19% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
First Development Resources PLC	Planned IPO - POW 62.12% Exploration in Western Australia and the Northern Territory of Australia	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Planned IPO - POW 83.13% Exploration and development in Nevada, USA	www.goldenmetalresources.com
Kavango Resources PLC	Investment - POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22) Exploration in Botswana	www.kavangoresources.com
New Ballarat Gold PLC	Planned IPO - POW 49.9% Exploration in the Victoria Goldfields of Australia	A new website is currently in development which will be found at www.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .

 

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