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

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

“There is significant competition for high quality uranium ground in and surrounding the Athabasca Basin in Saskatchewan, Canada. As outlined below, there were other uranium companies also lodging applications over the Haresign Bay Property which we announced on 2 February 2023 and which has reduced the amount of ground we were able to secure at that project.

The interest in the Athabasca Basin is noticeably increasing meaning we must accelerate the acquisition of additional ground. By moving quickly, the Power Metal technical team has already taken action by staking an additional two properties located within the Basin.

Given the recognition of uranium as a key commodity for future power generation we are also accelerating our efforts to secure projects in other regions as quickly as possible to build our exposure. The level of interest in uranium exploration extends across many high-profile regions globally and there is no time to waste on this.”

HIGHLIGHTS:

– All claims were acquired by direct mineral claim staking by the Power Metal technical team. They were acquired through the Mineral Administration Registry Saskatchewan (“MARS”) electronic registry system on 15 February 2023. The staking acquisitions represent 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 Hawkrock East and Hawkrock West uranium properties (collectively the “Properties”) cover a total combined area of 4,280-hectares (42.80km2) within the prospective Snowbird Tectonic Zone (“STZ”) in the northeastern corner of the Athabasca Basin.

 

· Historical exploration completed covering the Hawkrock East property identified elevated radon, uranium and methane-in-groundwater coincident with largely untested electromagnetic (“EM”) geophysics conductors. Previous drilling completed by the Saskatchewan Mineral Development Corporation (“SMDC”) in 1981 identified major faulting and pelitic geology which is considered by the Company to be comparable to many Athabasca basin unconformity-related uranium deposits.

 

– The Hawkrock West property, located 12km to the west of Hawkrock East, is centred around multiple EM conductors which are coincident with elevated uranium pathfinder elements (incl. As, Co, Ni, Th and Pb) in lake sediment sample assays. Previous drilling completed by D.F Exploration Ltd in 1997 returned elevated uranium, thorium and radiation counts-per-second (“CPS”) readings of drill core in close proximity to the Athabasca sandstone and basement unconformity.

 

– Due to a correction following concurrent competing applications within the MARS electronic claim registry, Power Metal’s previously staked Haresign Bay Property has been reduced in size from 3,189-hectares (31.89km2) to 165-hectares (1.65km2) with two other uranium focused companies securing the balance. The Kernaghan Property was unaffected and remains as previously announced. This reduced the staking cost of Haresign Bay Property to CAD$300 from CAD$1,913.51. Both Haresign Bay and Kernaghan properties come with a two-year term with no minimum spend requirement and which can then be extended for subsequent years by spending an aggregated minimum of CAD$72,623 per annum.

 

– With the addition of the Properties, as well as the reduction of the Haresign Bay Property, the Power Metal Athabasca uranium portfolio now consists of sixteen properties, including two conditional disposals1,2, with a combined total area of 965.73km2.

FURTHER INFORMATION

Geology

The Properties are located in the northeastern corner of the prolific Athabasca Basin and within the STZ. The STZ is a 200km wide structural zone which crosses the Athabasca Basin in a northeast-southwest orientation. On the other side of the basin, the STZ is host to the Centennial unconformity related uranium deposit owned by a joint venture between Orano SA and Cameco Corp., where drilled intersections include up to 34m @ 8.8% U3O8.3

Mineral Claim Staking Process

The mineral claims constituting the Properties were acquired directly through the Mineral Administration Registry Saskatchewan (“MARS”) electronic claim registry system.

Where a previous claim owner is unable to satisfy the claim maintenance requirements, that ground is reopened to third party staking. The total cost of staking the Properties was a combined CAD$3,340.75. 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 an aggregated minimum of CAD$83,519 per annum.

The Properties staked are pending licence grant which is expected shortly.

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.

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

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 Property1

MC00015213

1,323

13.23

Reitenbach Uranium Property2

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

5,657

56.56

MC00015562

5,199

51.98

Old Woman Rapids

MC00015563

4,851

48.51

MC00015564

5,063

50.63

MC00015565

3,044

30.44

Durrant Lake

MC00016142

5,866

58.66

Badger Lake

MC00016253

1,671

16.71

Haresign Bay

MC00016910

100*

1.00*

MC00016911

33*

0.33*

MC00016912

33*

0.33*

Kernaghan

MC00016760

4,566

45.66

Hawkrock East

 

MC00016968

2,345

23.45

Hawkrock West

 

MC00016967

3,220

32.20

Total Licence Holding Area

96,573

965.73km2

*Resulting licence area after reduction

NOTES AND REFERENCES

1: The E-12 Property, currently included as one of the 16 uranium portfolio properties, is subject to a conditional disposal to Teathers Financial PLC for a consideration of £250,000. Work is ongoing to complete that transaction. See Company announcement released on 4 November 2022.

2: The Reitenbach Property, currently included as one of the 16 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 released on 8 August 2022.

3: Jiricka, D.E., and Witt, G., 2008, The Centennial deposit-an atypical unconformity-associated uranium deposit: Calgary, Mining Forum, April 2008.

 

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.

 

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