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Power Metals Chase Canadian Uranium

21 June 2023 16:39
LON: POW

Power Metal Resources is primed to uncover the true potential of its extensive uranium holdings in and around Canada’s prolific Athabasca Basin, with the Company having finalised planning leading to its largest exploration program yet, hitting at least 10 of the explorer’s 17 properties.

Powerful Program

Power’s technical team has completed the finalisation of the program, which will be executed in collaboration with several geophysical and field contractors based in Canada. The program is scheduled to begin later this month, covering Power’s extensive 1,005km2 holdings, with exploration activities focusing on multiple projects including Tait Hill, Badger Lake, Durrant Lake, Kerneghan, Soaring Bay, E-12, Reichenbach, Cook Lake, and Clearwater.

Exploration activities planned across the portfolio include soil and geochemical sampling alongside a variety of electromagnetic surveys, with the general goal of establishing drill-ready targets at advanced projects and providing further opportunities for follow-up exploration at projects that have had less exploration.

The upcoming geochemical sampling program at the Tait Hill Project holds significant importance. It is a follow-up to previous sampling programs conducted over the past two years, which unveiled impressive uranium grades of up to 3,986ppm U from pegmatites within the Project area. The upcoming campaign will specifically target the Mullis Lake area, which exhibited uranium grades of up to 825 parts per million U.

Growing Canadian Holdings

In addition to advancing its existing portfolio, the explorer has achieved a significant milestone by completing the acquisition of the Perch River Uranium Project, granting the Company with an additional 9.41 square kilometres of lithium-rich land, located entirely within the Athabasca Basin.

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Figure 1: Perch River Uranium Project Overview Map

The Project is crossed by a major fault zone of the same structures interpreted to enable the generation of uranium deposits elsewhere in the Athabasca Basin, with recent geochemical work uncovering a cluster of anomalous U-in soil geochemical anomaly up to 33ppm U which are associated with elevated vanadium, lead, and cobalt results which are known to be associated with uranium mineralisation.

These soil results were also uncovered under 400 metres away from elevated radon222 and thorium-in-soil results, both of which are products of uranium decay and are used at tracer elements in and around the Athabasca Basin.

Despite these promising signs, the Project has seen minimal exploration, with a compelling gravity low to the Project’s north remaining completely untested.

Spinning Out Uranium

Finally, the Company announced that it will be expediting the planned listing of spin-off company Uranium Energy Exploration (UEE), to which the Company conditionally disposed the Reitenbach and E-12 properties to in September, giving investors the opportunity to invest directly in Athabasca Basin Uranium exploration while allowing POW to retain some control over the Projects.

Divesting projects into smaller spin-off companies has become a key part of POW’s strategy, allowing the Company to take full advantage of its extensive portfolio without having to spread its focus too thin.

It is a strategy that has caused resounding success so far, with First Class Metals, which holds a number of POW’s Canadian projects, winning IPO of the year from UK Investor magazine and Golden Metal Resources, which holds all of POWs Nevada-based projects, recently hitting the boards with a £1.98m listing.

Looking Ahead

The Company said that the 2023 exploration campaign couldn’t have come at a better time, with investor attention in the commodity growing as they see its upside potential as a clean energy alternative fuel.

“The purpose of the exploration programme is to carry out a variety of geophysical and ground-based surveys in order to begin proving up drill-ready targets. The results are expected to come in the second and early third quarter of this year, with the intention of having a well-defined picture of the opportunity by Q4 of this year,” Chief Executive Sean Wade said.

“The recent addition of the Perch River Project was a strategic move, increasing the Company’s overall footprint in and around the Athabasca Basin, and enhancing what we consider to be a globally significant package of uranium licences.”

“I am also pleased to report that the listing of Uranium Energy Exploration, initially reported in September 2022 into which Power Metal has conditionally disposed the Reitenbach and E-12 properties,1,2 will now be expedited in order to meet investor demand for pure-play exposure to uranium exploration in this region.”

POW’s London Stock Exchange-listed share price has risen 1.23 per cent today, selling at 0.83 British pence (3.45 pm UTC+ 8 hours).

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