Power Metal Resources #POW – Canadian Lithium Project – Exploration Update

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% Cr₂0₃ (Chromium (III) Oxide), and 0.21% nickel). The reports related to drilling conducted in 1955¹ and 1974² 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% Li₂O (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: