Power Metal Regulatory News (POW)

20 November 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Exploration Update - Significant Uranium Targets

Follow Up Exploration Confirms Significant Uranium Mineralisation at Tait Hill and Soaring Bay

Power Metal Resources PLC (AIM:POW), the London listed exploration company with a global project portfolio, announces key developments to its currently 100% owned uranium business, covering a combined 1,012km2 across 17 properties (collectively the "Uranium Portfolio") in and around the prolific Athabasca Basin in Saskatchewan, Canada.

Initial radon gas sampling results from Tait Hill and Soaring Bay were announced to the market on 11 October 2023 and can be found at the link below.

https://www.londonstockexchange.com/news-article/POW/significant-uranium-targets-identified-at-projects/16161347

The results presented herein are the soil geochemical sampling results over the same targets which have further demonstrated significant uranium prospectivity and enabled refinement of potential drill targets.

HIGHLIGHTS

Tait Hill

· At Tait Hill's Mullis Lake Target, very significant uranium ("U") anomalies (up to 164ppm U) in soil were encountered which is strongly coincident with radon anomalies announced on 11 October 2023 as well as historical radiometric anomalies, highlighting the prospectivity of this target area.

· The Company believes that the Mullis Lake Target has geological similarities to the Rössing uranium deposit located in Namibia, and the results obtained from this soil and radon gas sampling point to a large target for future exploration.

Soaring Bay

· At Soaring Bay, the soil geochemistry results highlight areas of strong anomalism which supplement and support the strong radon results presented on 11 October 2023, which highlighted a significant >3km long northwest-southeast trending mineralised shear zone.

Kernaghan and Durrant Lake

· High-resolution airborne electromagnetic ("EM") geophysics surveys have now been completed on the Kernaghan and Durrant Lake properties with results pending.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented: 

"Power Metal provides one of the few opportunities for UK investors to get meaningful exposure to uranium exploration. We hold the largest ground footprint of any UK listed entity in and around the Athabasca Basin, Saskatchewan, Canada currently amounting to over 1,000km2.

"The 2023 Athabasca uranium exploration work continues to deliver exceptional results, with today's news confirming and refining significant uranium prospective targets at the Tait Hill and Soaring Bay properties. Added to the results announced in September at Perch River and Badger Lake, so far, four of the nine Athabasca properties we have explored in the 2023 programme have delivered major tangible results. 

"Further updates from this programme are expected in the near term, together with news in respect of the planned admission of Uranium Energy Exploration, where significant progress has been made recently.

"It is notable that our work continues whilst the spot price of uranium is approaching US$80/lb, a level last seen around 15 years ago. This underlying commodity strength has been bolstered by the increasing global acceptance that expanding nuclear power generation is critical for reliable low-carbon energy with a growing supply deficit facing the industry.

"In response, Power Metal will continue to advance its uranium interests at pace, and we believe the considerable tangible progress being generated through this work will, in due course, translate into substantial value for shareholders."

FURTHER INFORMATION

Tait Hill Project - 2023 Recap

During the 2023 field season, Power Metal successfully completed the most comprehensive exploration programme across the Tait Hill Project in the last several years. The work was focussed on the Mullis Lake as well as Tait Lake targets and included the completion of high-resolution radon gas and soil geochemical sampling grids, as well as general prospecting, rock sampling and geological mapping. A member of Power Metal's technical team was onsite for the first week of the Tait Hill Project programme to aid in sampling and ensure company protocols were met.

Mullis Lake Target:

The Mullis Lake Target is of great interest to Power Metal Resources due to the geological similarities it shares with the Rössing uranium deposit located in Namibia. These deposits are characterised by large footprint, high tonnage, but relatively low-grade mineralisation, and are spatially and temporally related to fertile intrusions - thus they are known as 'intrusive-type' uranium deposits.

Three sub-targets have now been defined at the broader Mullis Lake Target. Sub-target A - located to the north of the main mapped intrusion, which historically returned up to 825 ppm U-in-rock chip and is defined by multiple radiometric anomalies. A total of 81 soil and 22 in-situ radon gas samples were collected at this sub target. Sub-target B is located to the northeast of the intrusion on which 92 soil samples and 17 in-situ radon gas samples were collected. Sub-target C is located to the southeast of the main mapped intrusion. A total of 70 soil samples were collected over sub-target C.

All soil samples from the 2023 campaign were collected from the B-horizon and analysed at the Saskatchewan Research Council Geolab in Saskatoon for a partial leach (aqua regia). Details of the methodology of the radon sampling are present in the prior RNS release (dated 11 October 2023).

Mullis Lake - Sub-target A

The 2023 results show a strong, sustained, enrichment of radon (up to 3.47 pCi/m2/sec) within the sub-target, which is supported by a strongly anomalous 164 ppm U-in-soil result. In the north of the grid, two elevated radon results (3.42 and 3.54 pCi/m2/sec), with two further high results, provide a broad east-west target approx. 800 m long, supported by high U-in-soil (30 & 29 ppm U). Approx 450 m to the south, a further occurrence of high uranium in soil (up to 54 ppm) is present. This area is also coincident with multiple historical radiometric anomalies.

Finally, near the eastern edge of the grid, a highly anomalous 4.47 pCi/m2/sec radon reading was recorded approx. 150 m to the northern edge of the mapped granite; this was not accompanied with an elevation in uranium soil geochemistry but suggests the potential for a buried uraniferous source.

Mullis Lake - Sub-target B

The 2023 results indicate a sustained 1,800 m long area of elevated radon extending to the northeast from the granite, which is also coincident with a historical radiometric anomaly. Soil results over this sub-target confirmed localised areas of uranium enrichment in soils. Additionally, samples from the eastern part of the sub-target area recorded phosphorus enrichment.

The previously noted elevated radon results located in the northeastern part of this sub-target (up to 3.46 pCi/m2/sec) do not appear to be associated with elevated uranium in soil, thus suggesting the potential for a further buried uriniferous source.

Mullis Lake - Sub-target C

Work on the Mullis Lake Sub-target C targeted radiometric highs parallel to the mapped granite. Results from this grid returned localised areas with uranium enrichment in soil up to 22 ppm U, which was also associated with a coincident radiometric high.

Summary

The work completed this field season has provided the first systematic soil sampling and the first radon gas sampling over the Mullis Lake Target. The results successfully generated multiple robust targets for follow-up work.

In particular, the identification of sustained elevated radon results which extend for approximately 1.8 km in a northeast-southwest orientation, which originate from the main mapped granitic body, is very exciting. In addition, at sub-target A, the work completed has yielded two areas of significant interest, including 1) near the southern extend of the sub-target where a highly anomalous soil result of 164 ppm U was encountered which is coincident with elevated radon results, and 2) to the north where radiometric anomalies are strongly coincident with sustained elevated radon and soil results. In summary, the results now received from the Mullis Lake Target have greatly enhanced the areas prospectivity, through systematic and cost-effective exploration.

Figure 1: Mullis Lake Target Results

Tait Lake Target:

The Tait Lake Target area is defined by multiple historical peat/marsh samples which returned highly anomalous uranium results (up to 14,359 ppm U)1. In addition, the Saskatchewan Mining Development Corporation in 1980 completed a detailed lake-sediment sampling programme across Tait Lake where they defined 308,000kg of uranium with an in-situ value of US $25.6 million (c. US$50 million at US$78/lb uranium).2 No modern sampling has been completed over this target. Two sampling grids, completed at 100 m sample and line spacing, were completed by Power Metal.

Tait Lake Target - Western Grid

The western grid was centred over the highly anomalous historical uranium geochemical results, which are believed to be peat/marsh samples. This area is also defined by a broad historical radiometric anomaly. The 2023 results returned sustained, as well as localised, uranium enrichment over this target area with B-horizon results up to 33 ppm U and a sustained anomaly located within the defined radiometric anomaly. The results suggest that uranium within the highly anomalous historical samples has been transported from the surrounding uranium-rich geology and accumulated in swamps and marshes. Therefore, the prospectivity of the grid, and the 'catchment' area of these depressions makes them highly prospective for further uranium occurrences.

Tait Lake Target - Eastern Grid

Designed to investigate an area with 1) a historical peat/marsh sample which returned 13,200 ppm U; 2) highly anomalous U-in-lake sediment results; as well as 3) multiple radiometric anomalies. Significantly, the 2023 results returned a highly anomalous U-in-soil result of 111 ppm which is located in close proximity to the historical result of 13,200 ppm U; this was taken within a small swamp, and thus, is artificially enriched in uranium. In addition, within the footprint of the nearby radiometric uranium high, multiple highly elevated results (compared to the surrounding samples collected within this fieldwork) 36, 55 and 21 ppm U are present. These results suggest a local source of uranium, over approx. 500 x 200 m.

Figure 2: Tait Lake Target

Soaring Bay Project - 2023 Recap

The 2023 programme included a soil and radon gas survey focussed along a prominent northwest-southeast trending structural lineament. In total, 64 soil samples, 36 in-situ radon samples and 16 rock samples were collected proximal and within this structural lineament across two grid areas. Both soil and radon sampling was completed along the linear feature and in multiple survey lines oriented 90° off the fault - designed to test for buried mineralisation along the extent of the fault. This feature had not been tested since the 1980s, and thus, it was determined that a systematic radon and soil survey combined with analysis utilising modern assay methods would provide highly valuable information for future field campaigns.

Southern Structural Lineation Target

The 2023 radon results show a significant enrichment along the structural lineation itself, with results up to 6.46 pCi/m2/sec, a significant level of enrichment compared against the lowest sample result from the survey of 0.59 pCi/m2/sec. Results are sustained along two occurrences between 300 and 200 m long. To the southwest of these occurrences, further elevated radon results (in the north, up to 4.71 pCi/m2/sec, and the centre 2.27 pCi/m2/sec.) are present. 300m of sustained strong radon responses were present in the southernmost line of the grid, with three results above 4.39 pCi/m2/sec, and the greatest of 6.13 pCi/m2/sec;

The 2023 soil results show three areas of interest; 1) near the northern part of the southern structural target soil sample results returned 20ppm U (incl. 63pp Lanthanum and 71ppm Yttrium) which is coincident with strongly elevated radon results; 2) near the central part of the grid a highly anomalous soil result returned 127 ppm U which also recorded 2.67 pCi/m2/sec radon, this sample is also elevated for Rare Earth Elements ("REE"), with Lanthanum (153 ppm) and Yttrium (80 ppm) potentially suggesting a common link between the two most enriched soil samples; and 3) in the extreme southeast of the grid, in the same samples which have a strong, sustained radon response (discussed above), results of between 2 and 7 ppm U were also identified. This area represents the strongest sustained radon response over a broad area.

Northern Structural Lineation Target

Radon results along the northern structural lineation target highlighted moderate anomalism. They were also coincident with sustained and moderately anomalous U-in-soil results with a maximum result of 13ppm U. 

Summary

The results from the soil and radon sampling over the structural lineament target at Soaring Bay has proven the existence of products of uranium decay along a significant structural lineation, with elevated U-in-soil. This has proven the historical radon occurrences and added further targets to the southwest of the structural lineation. Rock sampling targeting areas of historical REE enrichment have returned moderately elevated results. Further analysis will be completed by the Company in order to determine any significance of the presence of these pegmatites within Soaring Bay.

Figure 3: Tait Lake Target

REFERENCES

1: D. Car and G. Dickson, Saskatchewan Mineral Development Corporation Exploration, Geological and Geochemical Sruveys and Prospecting - Tait Lake CBS 5479, April 1977,

2: C. E. Roy and S. A. Earle, Saskatchewan Mineral Development Corporation Exploration - Summer 1980, Grease River-Scott Lake Project, CBS 5479, 5539, 5869 (74O09-0022). December, 1980

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.

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:

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.

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 grow the Company or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.