#POW Power Metal Resources – Uranium Portfolio Update – Athabasca Basin

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 95^th 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% U₃O_8.

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:

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