10 August 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Ion Battery Resources - Lithium Exploration Underway

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and development company, announces the launch of lithium exploration at the North Wind Lithium Project in the Province of Ontario, Canada ("North Wind" or the "Project").

North Wind is 100% owned by Ion Battery Resources Limited ("Ion") a wholly owned subsidiary of the Company which is targeting transition metals including lithium and graphite in mining friendly Ontario, Saskatchewan and Quebec, in Canada.

Power Metal is now the 100% owner of North Wind (lithium), as well as the Authier North (lithium) and Doerksen Bay (graphite) projects, which together represent a compelling and prospective group of battery metals assets focused in some of Canada's top mining jurisdictions.

On 12 July 2023, POW successfully expediated the earn-in on Ion's Authier North Lithium Project, and the associated claim transfer into Ion's 100% owned Canadian subsidiary is now nearing completion.¹

Separate updates detailing next corporate steps for Ion and exploration updates for the Authier North lithium and Doerksen Bay graphite projects, will be provided in due course.

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

"Power Metal has a number of interests providing potential exposure to lithium and we see an opportunity with Ion to create considerable value through a material investment in active lithium exploration.

Based on studies conducted by the Ontario Geological Survey, and highly anomalous lake sediment sampling results, the North Winds Project area is considered highly prospective for lithium pegmatite exploration, and the significant opportunity means we are moving ahead at pace with this programme. As is the case across our portfolio, we aim to undertake methodical and cost-effective exploration, and we look forward to updating shareholders on the results in due course.

Ion currently represents a small part of the Power Metal global project portfolio. However, it is shaping up well and we expect to confirm Ion's planned crystallisation pathway in the coming months."

Highlights:

-      The North Wind Project area is considered prospective for the discovery of pegmatite hosted lithium mineralisation. Lithium-caesium-tantalum bearing pegmatites account for approximately a quarter of the world's lithium production. ²

-      Lake sediment sample results from within the Project demonstrate highly anomalous concentrations of lithium, caesium and tantalum, which will help guide the current exploration campaign.

-      Ion has mobilised exploration crews at North Wind, to undertake the first ever lithium focussed exploration programme which will include geochemical sampling as well as prospecting and rock sampling over zones of interest.

-      The ongoing work programme fits with Power Metal's business model which includes:

o  Acquiring highly prospective exploration assets in mining friendly jurisdictions through low-cost means including claim staking and/or option/earn-in/outright purchases;

o  Conducting cost-effective, methodical exploration over the asset in order to increase the amount of available technical data and inherent asset value; and

o  Crystallise the increased value of the asset on Power Metal's balance sheet primarily through spin-outs and or an outright sale/joint-venture.

-      The initial deliverable from this important exploration programme will be a geochemical dataset which will provide important vectors towards the possible location of covered lithium (Li)-Caesium (Cs)-Tantalum (Ta)-bearing pegmatites ("LCT Pegmatites") within the North Wind claim boundary. The exploration field crew have good experience exploring and prospecting for LCT Pegmatites and if any are encountered at surface they will be sampled and sent for laboratory assay.

Northwind 2023 Exploration Campaign

The exploration programme will be carried out by Ontario based field contractors with oversight from Power Metal's technical team based in the United Kingdom. The programme is underway and includes a team of experienced lithium geologists and field assistants and will consist of soil sampling orientated at 90° to North Wind Lake (see Fig. 1) as well as prospecting and rock sampling over any zones of interest. Due to the projects poorly understood geology and the expected glacial cover (potentially obscuring the LCT Pegmatites), the planned programme will produce an important dataset which will provide information about the geological makeup of the area and allow for vectoring towards potential LCT Pegmatites.

The North Wind project area is accessible via all-terrain vehicles ("ATV") and boat, allowing for the exploration programme to be completely in a fast and cost-effective manner.

North Wind Background

The North Wind Project covers a total area of 57.89 km² located approximately 25km to the northeast of Beardmore, Ontario, upon the Onaman-Tashota Greenstone Belt which is considered highly prospective for LCT Pegmatite occurrences - the main source of 'hard rock' lithium worldwide. Despite this prospectivity, no records of lithium focussed exploration over North Wind exists.³

Other lithium explorers and operators within the region include Imagine Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium Project (with a reported historical non-compliant resource of 2,000,000 tonnes at 1.09% Li₂O), located 50km to the south of North Wind and Green Technology Metals (ASX: GT1) with their flagship Seymour Project (which hosts a JORC compliant total Mineral Resource of 9.9Mt at 1.04% Li₂O) located approximately 65km to the northwest.

The Project is centred on a granitic intrusion, cut by numerous mapped dykes. Highly anomalous lake sediment results (detailed further below) suggest that a zoned LCT-bearing pegmatite system may be present but has never been investigated. North Wind was identified through detailed research and analysis by Power Metal's technical team, utilising over 600,000 individual lake sediment sample points collected by the Ontario Geological Survey ("OGS"), who also prepared selected recommendations for exploration which were presented in a OGS open-file report.⁴ Based on this data as well as information contained within the report; the area encompassing the North Wind Project was selected for the strategic acquisition by staking.

The highly prospective and anomalous lake sediment data contained within the Project includes:

-      Seven instances of >99th percentile (with respect to regional data) Li-in-lake sediment results (ranging from 18.63 to 34.95 ppm Li) with 34.95 ppm representing the 99.95th percentile result.

-      Of those seven samples, six are >95th percentile for caesium (1.26 to 2.21 ppm Cs), with three >99th percentile (1.94 to 2.21 ppm Cs).

-      The seven samples are also noted to be highly elevated in tantalum with results ranging between 0.6 and 0.9 ppm Ta.

The presence of highly anomalous concentrations of lithium, caesium and tantalum from samples collected within the same water body by the OGS suggest a nearby mineralised source, and therefore the Project  is considered by the Company to be highly prospective for LCT Pegmatite occurrences. 

Fig.1 - North Wind Lithium Project Overview Map

References

1:            Company announcement, Acquisition of Authier North Lithium Project, 12 July 2023

(https://www.londonstockexchange.com/news-article/POW/acquisition-of-authier-north-lithium-project/16038121 )

2:            United States Geological Survey, Scientific Investigations Report 2010-5070-O, Mineral-Deposit Model for Lithium-Cesium-Tantalum Pegmatites, 2017.
( https://pubs.usgs.gov/sir/2010/5070/o/sir20105070o.pdf )

3:            Company announcement,   New Lithium Project - Ontario, Canada, 25 November 2022
( https://www.londonstockexchange.com/news-article/POW/new-lithium-project-ontario-canada/15731851 )

4:             Ontario Geological Survey Open File Report 6352: Cundari, R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P., Pettigrew, T.K., 2019, Report of Activities, 2018 Resident Geologist Program.

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 (AIM: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.