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Power Metals Stock Surges 14% After Uncovering Helium Anomaly at Perch

11 September 2023 11:05
LON: POW
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Power Metal Resources (LON:POW; AIM:POW) has disclosed the detection of multiple helium anomalies at the Perch River Project, including an ‘extremely strong’ helium response at the Project’s core, suggesting the presence of substantial concealed uranium mineralisation or the leakage of helium from a buried helium reservoir at depth.

Hyperspectral Analysis

The Company enlisted the expertise of Dr. Neil Pendock, a highly regarded sensing consultant, to conduct an analysis of Hyperspectral data using Sentinel-2 satellite imagery for mineral reflectance.

The results reported indicated the presence of several helium anomalies, whose source is currently unknown, but have been postulated by Dr Pendock to demonstrate either buried uranium mineralisation, a gas leak or leakage from a buried hydrocarbon reservoir.

Helium is a daughter product of the radiogenic decay of uranium and known to be enriched over uranium deposits elsewhere in the Athabasca Basin, with the anomalies at the Berch River Project a potential indication of similar buried uranium mineralisation.

Dr. Pendock further theorised that these anomalies might be the result of gas escaping along the fault structure oriented in a north-south direction from a subsurface helium reservoir at considerable depth. Alternatively, it could be leakage from a concealed hydrocarbon reservoir, although this is considered the least probable explanation.

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Figure 1: Perch River Project Helium Occurrence Map

Power Metals disclosed that the most robust helium responses identified through Hyperspectral Analysis were almost perfectly coincident with several key geological features:

  1. A prominent and highly significant gravity low anomaly within the Project area.
  2. An enriched zone of uranium in the soil.
  3. Government-defined geophysical conductors oriented in an east-west direction.
  4. A fault splay running north to south.

The Company believes these coincidences add weight to the significance of the newly discovered helium targets, especially the low gravity anomaly which is a direct result of an area with lower density than its surroundings, hinting at the potential presence of gas reservoirs.

The detection of uranium-enriched soil geochemical anomalies in proximity to the helium target further bolsters the case for uranium enrichment in the immediate vicinity, with Power Metals interpreting the fault structure as a conduit for the migration of helium gas from concealed uranium mineralisation at depth to the surface.

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Figure 2: Perch River Project Helium Occurrence Inset Map

These potential uranium discoveries come after Power Metals significant investment into uranium within Canada’s prolific Athabasca Basin, with the Company finalising the planning of its largest exploration program in June, hitting 10 of the explorer’s 17 properties.

Future steps

In light of the encouraging findings, Power Metals has redeployed its field crews, initially engaged in the Company’s uranium projects, to execute a high-resolution soil sampling grid across the noteworthy helium target zone.

Furthermore, the Company is actively seeking the expertise of a local gas specialist to assess the next strategic steps for advancing the helium target, which may include conducting comprehensive desktop analyses and helium-in-soil surveys.

As the data review progresses, additional exploration strategies will be assessed and defined.

Power Metal Resources’ Chief Executive Officer, Sean Wade, expressed enthusiasm in sharing this update with the Company’s shareholders.

“As we have previously reported, this season’s wider uranium fieldwork remains ongoing and further updates will be provided in due course,” he said.

“However, the indications we have had from Perch River could be hugely significant and warranted immediate release.”

“Whilst it is always important to manage expectations, it is fair to say that the discovery of such a strong anomaly has far exceeded our expectations and sets the scene for what we hope to be a strong schedule of news flow from our uranium portfolio overall.”

POW’s London Stock Exchange-listed price has risen 14.29% and is currently trading at 0.80 pence (11am UTC+ 8 hours).

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