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Power Metal (POW)

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Friday 08 April, 2022

Power Metal

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 95th 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% U3O8.

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 (97th and 98.5th percentile, respectively) and one is considered extremely anomalous, with a value of 108 ppm U (99. 8th 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)

+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

 

 

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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