New Lithium Project - Ontario, Canada

RNS Number : 6646H

Power Metal Resources PLC

25 November 2022

 

25 November 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

New Lithium Project - Ontario, Canada

Power Metal Acquires by Staking 100% Owned North Wind Lithium Project, Ontario, Canada

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the acquisition by staking of the 100% owned, North Wind Lithium Project ("North Wind" or the "Project") located in Ontario, Canada.

The staking was completed through Power Metal's wholly-owned Canadian subsidiary, Power Metal Resources Canada Inc ("Power Canada").

HIGHLIGHTS:

· Following a detailed review of several publicly available provincial government geological databases and reports, Power Metal have staked a total of 5,788.5-hectares over a 16km long trend of highly anomalous lithium-in-lake sediment results.

· The North Wind Lithium Project is considered by the Company to be prospective for lithium (Li), caesium (Cs), and tantalum (Ta) ("LCT") bearing pegmatite occurrences.

· The Project is ideally located less than 25km northwest of the town of Beardmore, Ontario, and is criss-crossed by multiple access roads which connect up to the Trans-Canada Highway located less than 40km away.

· This Project acquisition provides Power Metal Resources with a significant land holding which is prospective for LCT pegmatite occurrences within the stable and supportive mining jurisdiction of Ontario, Canada.

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

"The addition of the North Wind Lithium Project is a significant boost for Power Metal Resources as it provides the Company with a new and potentially high-impact lithium focused opportunity.

We consider that lithium as a commodity has a particularly bright future with high demand and constrained supply.  In fact, the significant move higher in the lithium price has sparked considerable interest in available exploration properties around the world, and particularly those in safe jurisdictions.

It was a great achievement that through painstaking work, the Power Metal technical team have been able to identify this new opportunity and secure it through staking, one of the most cost-effective ways to secure new interests.

Further updates will follow as we advance our knowledge and set out exploration plans for the North Wind Lithium Project."

ADDITIONAL INFORMATION:

The Project is located within the Onaman-Tashota greenstone belt, where historical exploration has traditionally focused on precious and base-metals - however the geology, in a provincial Open File Report (the "Report"), determined that the belt was prospective for LCT pegmatite occurrences - the main source of 'hard rock' lithium worldwide. ¹

Other lithium explorers and operators within the region include Imagine Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium Project (with a reported historical non-compliant resource of 2,000,000 tonnes at 1.09% Li₂O), located 50km to the south of North Wind and Green Technology Metals (ASX: GT1) with their flagship Seymour Project (which hosts a JORC compliant total Mineral Resource of 9.9Mt at 1.04% Li₂O) located approximately 65km to the northwest.

The Project is centred on a granitic intrusion, cut by numerous mapped dykes. Highly anomalous lake sediment results (detailed further below) suggest that a zoned LCT pegmatite system may be present but has never been investigated. North Wind was identified through detailed research and analysis by the Power Metal Resources technical team, utilising over 600,000 individual lake sediment sample points collected by the Ontario Geological Survey (OGS), who also prepared selected recommendations for exploration which were presented in the Report ¹. Based on this data as well as information contained within the Report; the area encompassing the North Wind Project was selected for the strategic acquisition by staking.

The highly prospective and anomalous lake sediment data contained within the Project includes:

· Seven instances of >99^th percentile (with respect to regional data) Li-in-lake sediment results (ranging from 18.63 to 34.95 ppm Li) with 34.95 ppm representing the 99.95^th percentile result.

· Of those seven samples, six are >95^th percentile for caesium (1.26 to 2.21 ppm Cs), with three >99^th percentile (1.94 to 2.21 ppm Cs).

· The seven samples are also noted to be highly elevated in tantalum with results ranging between 0.6 and 0.9 ppm Ta.

The presence of anomalous, or highly elevated concentrations of lithium, caesium and tantalum from samples collected within the same water body suggest a nearby mineralised source, and therefore the Project represents a highly prospective target for LCT pegmatite occurrences.  Further desktop analysis is currently underway, with a comprehensive Phase I Field Sampling Programme planned in Q1-Q2, 2023.  

STAKING PROCESS:

A total of 278 Mining Claim cells were registered by electronic staking through the Ontario Mining Lands Administration System, covering a total area of 5,788.5-hectares for a total cost to the Company of CAD $13,900 (circa £8,500). The mining cells are 100% owned by Power Canada, a wholly owned subsidiary of Power Metal Resources plc. Each Mining Claim cell covers 20.82-hectares and has an annual exploration spend commitment of CAD$400 from year two onwards.  The Project therefore has a total exploration spend commitment of circa £68,000 by the end of year 2 and then annually onwards, in order to keep all 278 Mining Claim cells in good standing.

A map showing the outline of the property, basic geological information and lake sediment results is below:

Fig. 1: Plan Map of the North Wind Lithium Project and Surrounding Area.

QUALIFIED 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 Qualified 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]

REFERENCE NOTES;

^1: Cundari, R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P., Pettigrew, T.K., 2019, Ontario Geological Survey Open File Report 6352, Report of Activities, 2018 Resident Geologist Program.

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 multiple internal exploration programmes completed or underway, with results awaited.  The status for each of the Company's priority exploration projects is outlined in the table below.

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme complete at 3 properties.  Preliminary planning for work in Spring/Summer 2023 is ongoing.	Assay results from samples collected during fieldwork.
Molopo Farms	Botswana	87.71%	First 2 holes at T1-6 conductor target drilling complete. T1-14 first hole underway. Further MLEM surveys planned over additional AEM targets identified.	Drill programme updates and findings from further MLEM survey work.
Tati Project	Botswana	100%	RC drilling and sampling of mine dumps complete.	Mine dumps processing and project commercial and exploration next steps.

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 27.91% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
Kavango Resources PLC	Investment - POW 9.85% (on expected Admission 25.11.22) Exploration in Botswana	www.kavangoresources.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
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/ .
Uranium Energy Exploration PLC	Planned IPO - POW on listing estimated 50-55% Uranium exploration in the Athabasca region of Canada	www.uraniumenergyexploration.com

 

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