Power Metal Resources #POW – Uranium Targets Confirmed – Athabasca Basin Canada

Hyperspectral Data Review – Further Target Refinement Complete

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update confirming uranium exploration targets across four properties in the Company’s uranium portfolio surrounding the Athabasca Basin, Saskatchewan, Canada (the “Portfolio”). 

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

“The Power Metal technical team have been working hard to advance our knowledge across the Athabasca uranium portfolio. The outcome of their work for four properties is outlined below, in readiness for planned field exploration this summer.

Notably, the work done has highlighted that the Tait Hill property hosts a geological setting analogous to the Rössing uranium mine, one of the world’s largest uranium producing mines. This is exciting for the team and it’s important we get on site as soon as practicable to further analyse the geology in the field.”

HIGHLIGHTS

· Power Metal’s hyperspectral data analysis utilising Sentinel-2 satellite data on hydrogen and helium gas reflectance has refined existing and confirmed new uranium exploration targets.

·   Target data to be used for next stage ground exploration this summer across 4 properties including field spectrometer survey, rock sampling and accredited laboratory lithogeochemistry testing of rock samples.

· Tait Hill project demonstrates a geologic setting analogous to Rössing, one of the world’s largest uranium producing deposits as detailed further below.

· All Portfolio property information is being integrated into comprehensive datarooms to support any future third party review.

FURTHER INFORMATION – HYPERSPECTRAL WORK PROGRAMME

Power Metal engaged Dr Neil Pendock, a highly respected remote sensing consultant, to source and analyse hyperspectral satellite datasets across all the Company’s Properties surrounding the Athabasca Basin.

The hyperspectral data acquired and analysed as part of the ongoing work on Power Metal’s uranium portfolio utilises Sentinel-2 satellite ¹ imagery from the European Space Agency (“ESA”) which has a spatial resolution down to 10m dependent on band. The spectral information associated with the reflectance of helium and hydrogen gas within the atmosphere can be a useful remote sensing tool in the exploration for uranium deposits. Most helium on earth is derived from the radioactive decay of radioactive elements, including uranium, while hydrogen can be released by the dissociation of water molecules by ionising radiation (linked to uranium deposits) on ground and surface water, a process known as water radiolysis.

The focus of the current hyperspectral study has been the four properties: Tait Hill; Soaring Bay; Clearwater; and Thibault Lake uranium properties (“Tait Hill”, “Soaring Bay”, “Clearwater” and “Thibault Lake” or the “Properties”), which have been selected for the next stage of ground exploration work scheduled to commence this summer.

A remote sensing study for the Reitenbach, Cook Lake and E-12 properties is currently in progress.

PROGRAMME FINDINGS AND NEXT STAGE FIELD PROGRAMME

On the Tait Hill, Soaring Bay, Clearwater and Thibault Lake uranium properties, the hyperspectral data collected has greatly refined, and in many cases enhanced, previously defined targets.

Preparations to launch field teams to highest priority targets are being finalised, and updates in regard to this will be released in due course. The planned fieldwork will be carried out by field teams experienced in the local geology from a highly reputable local geological consultancy who will be completing transverses over pre-defined targets utilising a handheld gamma-ray spectrometer (to detect radioactivity).

The refined targets have been defined in house by Power Metal’s geological team. The targets were developed by integrating multiple inputs including; 1) data extracted from historical technical reports; 2) government and provincial datasets; as well as 3) recently acquired hyperspectral imagery.

Tait Hill Targets

–  Mullis Lake Target : Located within a granitic intrusive geological setting which the Company believe to be analogous to the Rössing Uranium mine located in Namibia. The Rössing uranium mine, majority owned by the China National Uranium Corporation Ltd, is the world’s longest running open-pit uranium mine ². The Mullis Lake Target is defined by its geological setting (detailed below) and a large hyperspectral anomaly with a series of elevated U-in-lake sediment results located ‘downsteam’. This target has not been subject to detailed exploration historically and represents an important Target for Power Metal.

The Rössing uranium mine, majority owned by the China National Uranium Corporation Ltd, is the world’s longest running open-pit uranium mine ². The Mullis Lake Target is defined by its geological setting (detailed below) and a large hyperspectral anomaly with a series of elevated U-in-lake sediment results located ‘downsteam’. Mullis Lake has not been subject to detailed exploration historically and represents an important target for Power Metal.

Geological and structural similarities between the Mullis Lake Target and Rössing include:

Structural setting: On a project scale both localities are centred around a plunging fold at the apex of a lozenge shaped granitic intrusion. On a regional scale, both Rössing and Mullis Lake have a large shear structure running parallel to the strike of the granitic intrusion (at Rössing that structure is the Welwitschia Lineament, whilst at Mullis Lake the structure is the Grease River Shear Zone).

Lithology: The granitic intrusion at both localities is considered to be of monzonite-granodiorite composition. Historical exploration at Mullis Lake noted the granite to be enriched in uranium and identified occurrences of ‘radioactive leucogranites’. This is of note as at Rössing the uranium mineralisation being exploited is hosted within leucogranite.

–  Northeastern Target : Centred on northwest-southeast trending kilometre-scale uranium enriched dykes. At this target, the  hyperspectral data is strongly coincident with one of these features. Local to the dykes, uranium enriched samples with historical scintillometer results between 1,000 and 3,000 Counts-Per-Second (“CPS”) have been identified through fieldwork undertaken by a historical operator.

Soaring Bay Targets

–  East Soaring Lake Target : Centred on a mapped southeast-northwest oriented shear structure where historical exploration has highlighted significant radon gas anomalies. The planned work programmes will aim to sample this radon enriched shear-zone using modern analytical and sampling methods for radon gas. Helium (He) and hydrogen (H) gas Sentinal-2 satellite data hyperspectral responses have been identified located southwest and northeast of the shear structure – which may indicate the presence of additional uraniferous material (at surface or slightly buried) near to the main radon showing. Radon gas is produced by the decay of uranium and accumulates within soil and groundwater, where it can be measured in situ. Radon surveys have previously identified exploration targets on the Patterson Lake trend for Fission Uranium Corporation and Nexgen Energy Ltd., leading to the discovery of additional mineralised zones, including the Triple R Deposit, held by Fission Uranium Corp

–  Upston Lake Target : Centred over multiple radioactive pegmatites where historical scintillometer readings returned between 1,200 and 7,000 CPS. The pegmatites were identified as part of previous exploration  by a historical operator but were subject to limited testing. The hyperspectral data collected has provided further targeting information to direct field teams.

–  Flinthead Lake Target : Covers a pegmatite identified and tested by a historical operator which returned scintillometer readings of up to 15,000 CPS. The Sentinal-2 hyperspectral data collected identified multiple offset northeast-southwest trending He/H spectral responses, possibly related to further buried pegmatites.

Thibault Lake Targets

–  West Tazin Lake Target : Covering a non-compliant resource estimate produced by a historic operator of 65,000 lb at an average grade of 0.83 % U₃O₈³. This occurrence has now been re-examined, and the Sentinal-2 hyperspectral imagery study has highlighted that a wider, and largely untested feature may be present outside of the main non-compliant resource area.  Associated with this hyperspectral target is an outcrop sample collected by Power Metal in late 2021, which returned an impressive 3.86 % U₃O₈.

–  South Laird Island Target : Historically, this part of the Thibault Lake property has been underexplored, with no recorded exploration within the last 60 years. The proposed work programme involves investigating various north-east-east trending features in close proximity to an elevated lake sediment result (108 ppm U) collected, and analysed by the Provincial Survey. The Sentianl-2 hyperspectral data collected has provided further targeting information to direct field teams.

Clearwater Targets

–  Toots Lake Target : Located near the north Clearwater property boundary in close proximity to an extremely anomalous (99.4th percentile ) uranium in lake sediment result (233 ppm U) determined from the Provincial Survey. This target is centred around previously mapped dykes/shears trending in a northeast orientation which are sub-parallel with the regional geological trend. The Toots Lake Target correlates with identified elevated Sentinal-2 hyperspectral He/H anomalies further enhancing target selection.

–  Hardin Lake Target :  Located in the northwest portion of the Clearwater property, this target is centred on multiple untested outcrops which are surrounded by a strongly anomalous U-in-lake sediment result of 166 ppm U collected, and analysed by the Provincial Survey. The hyperspectral data collected has provided further targeting information to direct field teams.

–  A-6 North Target :  Located in the south of the Clearwater property, this target includes drilled occurrences from the 1950s⁴ which included ‘off upper scale’ radioactivity within broken core and nearby strongly anomalous ( 98.5th percentile) lake sediment results, collected, and analysed by the Provincial Survey of  119 ppm U.  Hyperspectral data from the targeted area shows a strong He and H spectral response.

North Webb Lake Target : Centred around two small discrete uranium occurrences within the west of the Clearwater property. These occurrences are associated with strong He and H spectral anomalies. No modern historical exploration work has been recorded at this target.

GLOSSARY

Hyperspectral – Hyperspectral imaging concerns the collection and processing of information from continuous and contiguous ranges of wavelengths across the electromagnetic spectrum.

Plunging fold – a geological structure consisting of a lithological fold which is tilted along the fold axis, in the case of the Mullis Lake Target the lowest point of the plunging fold is opposite the mapped granitic intrusion.

Monzonite-granodiorite – An intrusive rock which is composed of quartz, plagioclase, alkali feldspar, with minor hornblende and/or  biotite  

Leucogranite – An intrusive rock which contains only light minerals (quartz, feldspar) and minor trace minerals.

Shear structure – an area of rocks which have become broken and sheared due to tectonic processes, these structures can extend for hundreds of kilometres.

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.

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

REFERENCES

1:   European Space Agency Sentinel-2 information: https://sentinels.copernicus.eu/web/sentinel/missions/sentinel-2

2:  https://www.rossing.com/shareholding.html

3:   Rock Hill Uranium Ltd, DDH Record and Maps, (74N14-008) Accessible via: http://mineral-assessment.saskatchewan.ca/Pages/BasePages/Main.aspx

4:  Johnston, 1951 (Orbit Uranium Developments Ltd) Report on Exploration, November 1951 (74N10-0178) Accessible via: http://mineral-assessment.saskatchewan.ca/Pages/BasePages/Main.aspx

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: