Uranium Portfolio Update - Athabasca Basin

RNS Number : 7247H

Power Metal Resources PLC

08 April 2022

 

8 April 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Portfolio Update - Athabasca Basin

Highlights of Historical Data Compilation from the Clearwater and Thibaut Lake 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 on its Clearwater and Thibault Lake Uranium Properties (together the "Properties"), within the Beaverlodge Uranium District, which are part of the larger uranium (U) property portfolio that includes seven 100% owned interests (Table 1) covering an area of 450.01km² (45,001-hectares), surrounding the Athabasca Basin in northern Saskatchewan, Canada (the "Uranium Portfolio").

Highlights include:

·Properties host known 'Beaverlodge style', structurally related vein-type, uranite (UO₂) (pitchblende) mineralisation, with a former uranium trial mine on the Clearwater Uranium Property, and a historical non-compliant resource of 65,000lb (29.5t) at an average grade of 0.83 % U₃O₈ reported on the Thibaut Lake Uranium Property.⁶

·Government data indicates the presence of multiple occurrences of strong vein-hosted uranium mineralisation on both Properties with sample assays of up to 0.63% U₃O₈ and 6.6% U₃O₈ being reported for the Clearwater and Thibault Lake Uranium Properties, respectively. 

· Majority of U-in-lake sediment samples taken from both Properties are considered strongly anomalous (greater than 95^th percentile) for uranium, with respect to regional data,  suggesting nearby sources of uranium mineralisation.

· Results of a historical data review supplement and support the strong uranium mineralisation identified during Power Metal's ground exploration completed on both Properties during Q4 2021.

A map highlighting results from the historical data compilation completed on the Clearwater and Thibault Lake Uranium Properties are available through the following links:

https://www.powermetalresources.com/clearwater-overview-map/

https://www.powermetalresources.com/thibaut-lake-overview-map/

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

"Today's update covers the Clearwater and Thibault Lake Uranium properties located a short distance from Uranium City, Saskatchewan, near the northern edge of the Athabasca Basin. Both Properties host 'Beaverlodge-style' structurally related uranium mineralisation, with Clearwater also having a historical deposit with a non-compliant uranium resource of 65,000lb at an average grade of 0.83% U₃O_8.

The findings from our technical review of both Properties confirm significant uranium prospectivity and extensive opportunities for forward exploration work.

Importantly, with today's announcement we have completed a full technical data review for all seven Power Metal Athabasca region properties, and all seven have demonstrated significant uranium prospectivity.

We now have seven data rooms available which can be used for external third-party discussions, and also for internal exploration planning.

I would like to thank the team for working through the immense amount of historical information and undertaking the detailed review thereon. This work has added considerable value to our uranium portfolio at a particularly compelling time with uranium demand and price rising contemporaneously."

Clearwater Uranium Property Overview

- The Clearwater Property ("Clearwater Property" or "Clearwater") covers an area of 7,916-hectares (c. 79.16km²) located in northern Saskatchewan, Canada. The property is less than 10km from the northern edge of the Athabasca Basin, within the Beaverlodge Uranium District, 15km from Uranium City, Saskatchewan - a historically prospective area for uranium exploration and mining. Saskatchewan ranked third in the most recent 2020 Fraser Institute Investment Attractiveness Index rankings of global mining jurisdictions.¹

- Clearwater hosts nineteen Saskatchewan Mineral Deposit Index ("SMDI") occurrences, of which 14 are uraniferous, and includes a former uranium trial mine. The uraniferous occurrences in the Beaverlodge Uranium District are predominantly linked with structurally associated vein-type or breccia-type U mineralisation, linked to faults and shears, but may span a wide variety of uranium mineralisation types as typified in the wider Beaverlodge Uranium District. The Ace-Fay-Verna deposit (located 14km southeast of Clearwater) is reported to have historically produced over 12,000 tonnes of U (24 Million lb) at an average grade of 0.28% U. In addition, four base-metal and one precious-metal SMDI occurrences (copper, lead, zinc and silver showings) have been identified on Clearwater.

-   Historical work has been highly localised and centred on select previously identified geochemical anomalies and geophysical results. This historical work, collated by Power Metal, has identified previously drilled uranium-rich mineralisation, elevated uranium anomalism within spring water occurrences and numerous radioactive outcrops with scintillometer readings of over 250 counts per second ("CPS"). In addition, government data indicates strongly anomalous U-in-lake sediment results. The vast majority of the Clearwater Property is underexplored and untested by modern exploration methods.

- Clearwater is considered prospective for vein-type or breccia-type structurally hosted 'Beaverlodge-style', pegmatite and basement-hosted unconformity related uranium mineralisation.

Thibaut Lake Uranium Property Overview

- The Thibault Lake Property ('Thibault Lake Property" or "Thibault") covers an area of 4,401-hectares (c. 44.01km²) located approximately 25km north of the Athabasca Basin edge, approximately 15km northwest of the Company's Clearwater Property, and is also within the Beaverlodge Uranium District.

- Historical work on Thibault, collated by Power Metal, has centred on defining anomalous areas of vein-hosted Uranium mineralisation, and has suggested the possible presence of a historical moderately sized 'Beaverlodge-style' uranium occurrence.

- Thibault is centred around six SMDI uranium occurrences which were discovered during previous exploration campaigns. Samples of up to 6.6% U₃O₈ (5.6% U) have been reported from uranium-rich veins uncovered from historical trenches.

-  The Thibault Lake Property is considered by Power Metal to be prospective for vein hosted 'Beaverlodge-style' and pegmatite-hosted uranium mineralisation.

FURTHER TECHNICAL INFORMATION

Power Metal recently completed an in-depth historical data compilation across its entire Uranium Portfolio surrounding the prolific Athabasca Basin, Saskatchewan, and now possesses a robust fully-digitised database covering all historical work programmes completed across each asset, including the Clearwater and Thibaut Lake Uranium Properties.

A total of 26 historical reports were digitised from work programmes covering at least some part of the Clearwater Property. These date from the 1950s to 1975 and include ground exploration, trenching and lake sampling, with no further work in the most recent 45 years. On  the Thibault Property, a total of 17 historical reports cover the area. Dated between 1954 and 1979 these include trenching, drilling, airborne and ground scintillometer survey results.

Clearwater Compilation Highlights

- The Clearwater Property covers nine Geological Survey of Canada ("GSC") lake sediment results. With respect to 6,000 regional data points, all are elevated (>80th percentile), four are considered highly anomalous with 48, 55, 57 and 69 ppm U (95th to 97th percentile) reported. The remaining four samples are considered extremely-anomalous, with results between 110 and 233 ppm U (98.5th to 99.4th percentile).

-    Water sampling, as part of historical exploration activities, has yielded highly-elevated uranium anomalism (44 U gamma/l) from a spring located in the south of the Clearwater Property (versus a background of ~0.4 U gamma/l).² This uraniferous spring is in close proximity to previously identified radioactive outcrops, including a 30 m long x 10 m wide lens within granitic gneiss' that returned select grab sample results between 0.018 and 0.15% U₃O₈.²

- The Property overlies multiple major fault- and shear-zones, which are coincident with known uranium and radioactive occurrences which include:

1.   Associated with a shear-zone located in the south of the Clearwater Property, the 'A-6 occurrence' returned uraniferous mineralisation of up to 0.145% U₃O₈ within a massive graphite and graphitic pelite with associated local hematite (iron oxide), pyrite and hydrothermal alteration.³ These features are typical of both basement-hosted unconformity and 'Beaverlodge-style' uranium deposits. These represent high-priority exploration targets for the Company that will be targeted during future work programmes.

2. Associated with a shear-zone located in the northeast of the Clearwater Property, the 'A-8 occurrence' has received multiple drillholes which identified weakly radioactive brecciated pegmatites alongside a 20 m zone of elevated surface radioactivity.⁴ Ground exploration carried out by Power Metal in 2021 identified uraniferous outcrops 400 m to the northwest  of the A-8 occurrence which returned scintillometer results between 650 and 1,200 CPS hinting at the possible size of this uranium enriched zone.  

3.  The Don Henry Mine operated in the early 1950s and consists small mine trial workings including trial pits and a small, inclined shaft. Historical records indicate that channel sampling returned 0.3m at 0.31% U₃O₈. ⁵

In addition, the Clearwater Property hosts further uraniferous occurrences recorded on the SMDI. These occurrences are also spatially related to the fault systems on the property and are generally hosted within intrusive bodies:

SMDI Number	Occurrence	Result*
1465	Contacts between pegmatites and mafic units/biotite pods	Up to 0.18% U3O8 within a chip sample
1467	Biotite gneiss exhibiting considerable staining	0.53% U3O8 from grab sample
1468	Two narrow parallel fractures 1.5 m apart in granite	0.63% U3O8 from vein samples
1469	Closely spaced fractures at the contact between granite and the country rocks	0.55% U3O8 from a grab sample
1474	Quartz veining in pegmatite dykes and slip planes associated with nearby faulting	0.13 - 0.145% U3O8 from chip/grab sample
2111	Radiometric anomaly and minor scintillometer readings within gneiss	Very high scintillometer readings (exceeding 15,000 cps) in outcrop

*Historical results obtained from the Saskatchewan government Saskatchewan Mineral Deposit Index (SMDI) website. The source of each entry can be viewed by clicking the hyperlinked SMDI number.

The wide geographic spread, and notable uranium grades underscore the general prospectively of the Clearwater Property.

Thibault Compilation Highlights

- The Thibault Property covers four GSC lake sediment results. With respect to regional data, two are considered highly anomalous 24.5 and 38.6 ppm U (97^th and 98.5^th percentile, respectively) and one is considered extremely anomalous, with a value of 108 ppm U (99. 8^th percentile).

-  Previous drilling near the eastern part of the Thibault Property led to the delineation of a historical non-compliant vein-hosted deposit of approximately 65,000lb (~29.5 tonnes) at an average grade 0.83 % U₃O₈. In addition, historical trenching on the property has identified narrow (0.1m wide) veins which returned results between 1.6 to 6.6% U₃O₈ (tri-uranium octoxide), which were shown to extend for at least 25m along strike - these occurrences included visible uranite mineralisation.⁶

-  Exploration and sampling undertaken by Power Metal in late 2021 has yielded impressive radioactivity in outcrop including results between 450 and 46,000 CPS, (0.04 - 0.165% U₃O₈).

-  The Thibault Property hosts seven SMDI uranium occurrences, all of which are classified as 'Beaverlodge-style' and associated with either faults, amphibolite units or granite, with uranium values of up to 3.85% U₃O₈.⁷

Uranium Property 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 Saskatchewan Uranium Portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings

Project	Licence ID	Area - Hectare
Clearwater Uranium Property	MC00015079	1,110
	MC00015083	563
	MC00015082	3,191
	MC00015151	760
	MC00015646	761
	MC00015658	1,541
Tait Hill Uranium Property	MC00015078	1,576
	MC00015081	968
	MC00015153	1,530
	MC00015152	1,886
	MC00015647	725
	MC00015648	1129
Thibaut Lake Uranium Property	MC00015077	2,206
	MC00015659	2,195
Soaring Bay Uranium Property	MC00015080	1,255
	MC00015155	3,375
	MC00015874	748
	MC00015875	2529
Cook Lake Uranium Property	MC00015212	984
E-12 Uranium Property	MC00015213	1,323
Reitenbach Uranium Property	MC00015214	2,135
	MC00015474	1,235
	MC00015655	4,570
	MC00015656	5,322
	MC00015657	856
	MC00015824	528
Total Land Holdings		45,001

Glossary:

Basement-Hosted Unconformity Uranium Deposits: Uranium deposits which have formed below a geological unconformity, rather than at, or above it. 

Beaverlodge-style: A group of small, but moderate to high-grade uranium deposits found to the northwest of the Athabasca Basin. Such deposits are typically present along faults, fractures or shear zones, generally containing pitchblende, quartz, calcite, chlorite and sulphide minerals; or within a brecciated unit (see below) containing pitchblende, galena, quartz, calcite, chlorite, and pyrite.

Brecciated: Brecciated rocks are those which been subjected to either intense structural forces or  hydrothermal alteration, of which the later can alter the mineralogy or chemistry of rocks. Certain mineral deposits, such as breccia hosted uranium are typically found within this rock type.

Graphitic pelite: A type of metamorphic rock (a schist) containing high levels of graphite common within the Athabasca Basin; these rocks are often associated with mineralisation within unconformity-hosted related deposits.

Pegmatites: Pegmatites are coarse grained intrusive rocks which often carry economic mineralisation, they commonly form 'sheets' of rock close to larger intrusions.

Uraniferous: Enriched in uranium

Reference Notes:

¹ https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf

² Okadu et al, 1974, (Marubeni Canada Ltd) Hydrochemcial and Radiometric Survey Report on CBS-5368, 5369 & 5370 Athabasca M.D. Saskatchewan with Partial Results of Previous Airborne Survey. (74N10-0461)

³ Johnston, 1951 (Orbit Uranium Developments Ltd) Report on Exploration, November 1951 (74N10-0178)

⁴ Gui Por Gold Mines Limited, 1953, Drill Logs and Maps (74N10-0001)

⁵ https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1473

⁶ Rock Hill Uranium Ltd, DDH Record and Maps, (74N14-008)

⁷ https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1544

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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

Project	Location	POW %	Work Completed or Underway	Results Awaited
Alamo Gold Project	USA	Earn-in to 75%	Excavation of multiple test pits and mapping & sampling.	Field and assay results from on-site work programme.
Athabasca Uranium	Canada	100%	Data compilation across uranium properties	Interpretation results from all Properties complete.
Authier North Lithium	Canada	Earn-in to 100%	Soil & rock sampling completed	Technical Review of exploration results & define next exploration steps.
Ditau Project	Botswana	50%	Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.	Field updates and receipt & review of laboratory assay results.
Kalahari Copper Belt	Botswana	50%	Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas	Field programme findings and defined drill targets for near term drilling.
Molopo Farms	Botswana	53%	Review of recent exploration findings.	Determine next exploration steps and action plan.
Tati Gold/Nickel	Botswana	100%	Reverse circulation drill programme completed	Technical Review of exploration results & define next exploration steps.
Haneti Project	Tanzania	35%	Diamond drill programme completed	Receipt & review of laboratory assay results.
Victoria Goldfields	Australia	49.9%	Diamond drill programme underway	Field updates and receipt & review of laboratory assay results.
Paterson Projects	Australia	83.33%	Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.	Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.
Selta Project	Australia	83.33%	Field reconnaissance work now underway, including mapping and sampling.	Field updates.

 

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