(“Power Metal” or the “Company”)
18 June 2025
Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed exploration company with a global project portfolio, is pleased to provide an exploration update for the Badger Lake Uranium Property (“Badger Lake” or the “Property”). Badger Lake is located in the Athabasca Basin, Northern Saskatchewan, Canada.
The update concerns work undertaken by Power Metal and Fermi Exploration (“Fermi”). Fermi is the uranium-focused joint venture (the “Joint Venture” or “JV”) comprising Power Metal’s portfolio of uranium licences, of which Badger Lake is a constituent.
HIGHLIGHTS:
· Badger Lake has undergone comprehensive exploration studies, including soil geochemical, radon gas, and biogeochemical sampling, along with airborne electromagnetic and magnetic geophysical surveys, complemented by an ambient noise tomography (“ANT”) survey.
· A diamond drilling programme is currently being designed to test a highly prospective conductive body which is coincident with geochemical anomalies.
· The target ‘The ‘S Zone’ on the Property differs from most unconformity-related uranium targets in the Athabasca Basin, with the processed geophysical data suggesting a tabular conductive body situated at the unconformity between two major fault structures.
Sean Wade, Chief Executive Officer of Power Metal Resources PLC commented:
“This summer, Fermi Exploration will launch five high-impact drill programmes across our uranium portfolio. With the drill to begin turning in a matter of days, I’m pleased to update shareholders on the progress of technical work and target development elsewhere in our Athabasca Basin portfolio.
Through a comprehensive work programme, our technical team have identified the ‘S-Zone’, a highly exciting target on the Badger Lake Uranium Property, and I look forward to providing further updates on the drilling timeline in due course.”
OVERVIEW
Badger Lake has been subject to a comprehensive series of exploration studies with the objective of defining high-quality drill ready targets. The studies include airborne electromagnetic (“EM”) and magnetic geophysical surveys, as well as ground based Ambient Noise Tomography, complemented by soil geochemical sampling, radon soil gas sampling, and biogeochemical sampling.
These studies have identified a conductive body at an interpreted geological unconformity located between approximately 220 m and 450 m depth. While this conductor represents an unconventional target for unconformity-related uranium mineralisation, it is situated in a structurally favourable setting, with multiple fault structures and anomalous nickel and cobalt geochemistry directly overlying the conductor.
The target shares key characteristics with other significant uranium deposits in the Athabasca Basin, including McArthur River, Millennium, and Phoenix, as well as the Kiggavik deposit in the Thelon Basin.
A 2,400 m diamond core drilling programme is planned to commence in Summer 2025, pending permitting. The programme is designed to test the conductive feature and associated faulting in the central portion of the Property.
EXPLORATION SUMMARY
Geochemical Sampling Programme
Combined soil, radon and biogeochemical sampling was completed over the Badger Lake property in late October 2024, at the time of the survey the Company’s geophysical contractors had not been able to mobilise to site, and thus historical geophysical data was used to plan the sampling programme.
The combined sampling programme was designed to provide surface coverage of three conductive geophysical features identified from historical reports by COGEMA Resources Inc1, Dejour Enterprises Ltd2 and Titan Uranium Inc3.
Dahrouge Geological Services of Edmonton collected 290 soil samples, 109 radon sample points, and 172 biogeochemical samples of Jack Pine tree needles and branch tips from the Badger Lake Property.
Xcite Electromagnetic (“EM”) and Magnetic Survey
The Xcite EM and Magnetic geophysics survey was flown in November 2024 and January 2025 using the 30 Hz Xcite™ TDEM system, towed by an AS350B3 helicopter platform by Axiom Exploration Group Ltd. The survey collected time domain electromagnetic data (TDEM), on a line spacing of 100 m, with tie line spacing at 1,000 m, and was flown at between 20 m and 60 m above ground level.
Ambient Noise Tomography Survey
Ambient Noise Tomography (“ANT”) is a type of ground geophysical surveying; in this method, multiple seismic detectors are placed over an area of interest, to record the minute movement and activity of seismic waves from earthquakes generated elsewhere on Earth. Depending on the geology, faults, alteration and other key inputs for drill targeting, the ground below the sensors will deflect and very subtly change the trajectory of the seismic waves. These subtle changes are picked up by the seismic detectors, which are then analysed to determine the geological features below the surveyed area.
ANT is a highly innovative and efficient surveying technique with a low environmental impact. It has been used around the world but found particular success in the Athabasca and Thelon Basin, having been successfully employed by Forum Energy Metal Corp4, ATHA Energy Corp5 and IsoEnergy Limited6.
The 100 seismic detector survey was deployed in mid-May 2025 by Axiom Exploration Group, with the results provided to Fermi Exploratorium’s Technical team in early June 2025.
Geophysical Survey Results
The magnetic survey results reveal an east-west trending magnetic low in the centre of the Property (Figure 1). The Clearwater River Fault, a regionally significant structure7, occurs in the western portion of the Property, where survey data and structural geology indicate an offset. This offset faulting is inferred to represent a potential dilation zone with extensional faulting. Such zones are known to enhance basement porosity through fault structures, and may have served as conduits for fluid flow both prior to and during potential mineralisation in the area. Magnetic lows are well-established targets for unconformity-related uranium across the Athabasca Basin, with explorers across the Basin targeting similar structures to the magnetic low on Badger Lake8.
Figure 1: Magnetic (TRP 1VD) response on the Badger Lake Property, note the east-west trending magnetic low, with the electromagnetic response that is spatially related to anomalous nickel and cobalt in soil, with the S-Zone directly overlying the magnetic low.
Figure 2: Side-on view of the S-Zone and its relation to the inferred unconformity. The location of this slice is shown on Figure 1. Note how the conducive body of the S-Zone rests at the inferred unconformity.
Figure 3: The morphology of the conductive unit is shown in relation to the 2,950 m/s shear velocity surface interpreted from the ANT survey, representing the inferred unconformity. Inferred fault structures, which appear to control the conductive unit (up to 0.57 mS/m) are also presented. This scene is approx. 260 m below the land surface.
The electromagnetic survey has identified a conductive body approximately 1.5 km by 750 m in size, coincident with a shear velocity of between 0.52 and 0.59 mS/m, located in the centre of the Property and directly overlying a magnetic low. Three-dimensional inversion of the EM data indicates that the conductive body lies between 220 m and 450 m depth below surface. The ANT survey data suggests that the geometry of the conductive body is strongly influenced by the morphology of the unconformity and faulting, with the body situated between two inferred fault structures. This conductive body has been termed the ‘S Zone’.
Exploration in the Athabasca Basin typically targets graphitic conductors, which form tens and even hundreds of kilometre-long conductive trends within the basement. Deposits such as McArthur River, Phoenix, and Cigar Lake are spatially related to graphitic conductors rocks, and although recent research9 has suggested that graphite does not have an intimate relationship with uranium mineralisation. With other factors, such as the proximity of faulting, considered more important for mineralisation, as demonstrated at Millenium10 and Kiggavik in the Thelon Basin11. However, graphitic conductors remain key vectors for uranium mineralisation across the Athabasca Basin.
The S-Zone conductive body on Badger Lake is not a long, elongate feature, and does not extend deep (>100m) into the basement, and as such, it is not considered to be a graphitic conductor. The conductive body’s location, at the unconformity, where fluid flow and reduction/oxidation (“redox”) interfaces could be favourable to ore formation, is a key consideration. According to the ANT survey data, the conductive body is spatially constrained between two major fault structures, which also represent topographic ‘lows’ in the basement topography (Figure 2), further supporting a potential fluid pathway or trap during mineralising events.
Additionally, the ANT data indicates the presence of a gradual increase in shear wave velocity (and thus competency) moving into the basement. This suggests the presence of a thick ‘regolith’, possibly up to 80m in thickness. A ‘regolith’ represents rocks which have been weathered and altered prior to the deposition of the Athabasca Sandstone. In the Athabasca Sandstone above the unconformity, the ANT data suggests east-west dominated structure, it is unknown what, if any, relation this has to the basement geology. The east-west structure is on a similar trend to regionally mapped faulting within the Athabasca Sandstones7.
Geochemical Survey Results
The surficial geochemical survey results (Figures 1 and 4) reveal a distinct enrichment of uranium, nickel, and cobalt in soils overlying the S-Zone’s conductive footprint. In the west of this conductive footprint, a 600 m linear trend (60°NE) exhibits elevated uranium, rare earth elements, lead and radiogenic ²⁰⁶Pb/²⁰⁴Pb ratios. This trend aligns with a topographic high that is spatially correlated with the basement faulting outlined above.
Figure 4: Uranium and Radon in soil results, overlying the ‘S-Zone’ Channel 25 Conductivity Anomaly. The linear responses in Radon and linear geochemical trend appear to have a spatial relationship with basement faulting around the target.
The presence of a geochemical anomaly along a surficial topographic high of around 3m above the surrounding area (501 mAOD vs 498 mAOD) is a key consideration, as it indicates that the samples do not represent reduced environments, where one may expect enrichments in uranium, lead and other elements associated with unconformity-related uranium deposits. Instead, the geochemical anomalies may, more directly, reflect the underlying bedrock composition or proximity to mineralised structures at depth, implying potential fluid-flow pathways or mineralisation preserved at depth.
Radon in soil results, although much lower than values recorded from elsewhere in the Fermi Exploration portfolio, do record multiple linear responses overlying the east-west trending inferred fault structures within the shallow sandstones; however, based on the current understanding of the Property’s structural geology, further statements on this relationship would be speculative in nature. Results from the biogeochemical survey failed to record any significant anomalies, or spatial correlation with either soil, radon or geophysical data for the majority of elements.
Technical Discussion
Traditionally, companies have searched for unconformity-related deposits by targeting conductive graphitic zones, which have been inferred to have played a critical role in the development of the exceptionally high-grade and high-tonnage uranium deposits of the Athabasca Basin8. These conductive bodies are linear and typically extend many tens of kilometres, and extend into the basement for a considerable depth.
It is clear that such a feature is not present on Badger Lake, and the Fermi Exploration Technical Team have not definitively outlined what the conductive feature may be, however, the conductive S-Zone is located in an area of highly promising structural geology, with supportive geochemistry.
The vast majority of unconformity-related uranium deposits in the Athabasca Basin are either directly controlled or strongly influenced by faulting8 12. This influence is attributed to reducing, basement-derived fluids migrating along fault structures, where they interact with oxidising, uraniferous basin fluids. These reactions led to uranium precipitation at or near the unconformity. The morphology of the basement presented in Figures 2 and 3 is a key exploration driver on the Badger Lake property, with two inferred faults located in close proximity to the conductive feature, and underlying highly localised enrichment in uranium, cobalt and nickel. The two faults appear to have generated a ‘basement high’ – where the basement geology is raised above the surrounding unconformity; Cigar Lake, is located in such a location13, albeit with significant linear conductors.
While the scale of the faulting on Badger Lake is unknown, based on the airborne magnetic data, it is likely related to major faulting along the Clearwater River fault, and thus may be highly complicated; many unconformity-related deposits across the basin share complex structural geology8.
The inferred presence of a thick regolith at Badger Lake is a key observation, as a weathered regolith has played a critical role in the formation of unconformity-related uranium deposits elsewhere in the Athabasca Basin14. Typically, the regolith provides a highly fractured and porous zone that facilitates fluid flow-a crucial factor, combined with the complex structural geology in the genesis of unconformity-related uranium deposits14.
The enrichment of cobalt and nickel directly overlying the ‘S-Zone’ is also highly significant, as both elements are spatially associated with unconformity-related uranium mineralisation8, including at the Cigar Lake deposit13, and spatially related cobalt-nickel and uranium mineralisation is known from elsewhere in the Athabasca Basin16. This spatial relationship, combined with the uranium and radon enrichments overlying the conductive feature, present a compelling target for drilling.
Drill Targets and Next Steps
Between five to six diamond drill holes are planned on the Badger Lake property. Upon receipt of the drill permit and other necessary paperwork, further information on the proposed drilling timeline will be supplied.
A gravity survey is pending on the Property and will provide a final input to drill targeting. Gravity data is a key component in the exploration of unconformity-related uranium deposits, as gravity lows are often associated with the intense hydrothermal alteration that typically surrounds many deposits of this type in the Athabasca Basin8.
Based on the currently available information, two vertical drill holes with a target depth of 350 m will be planned to test the S-Zone at approximately 300 m below ground level (bgl). An additional three inclined drill holes are planned to test fault structures to the north and south of S-Zone, each to a depth of 600 m bgl. Further drill locations will be determined and discussed in due course.
GLOSSARY
| 206/204Pb isotope results | A measure of the ratio of uranium-derived lead (known as “radiogenic lead” 206Pb) to non-radiogenic “primordial” lead (204Pb). High ratios may suggest uranium mineralisation. |
| geophysical inversion | Geophysical inversion is a computational process that transforms geophysical survey data (e.g., gravity, magnetics, electromagnetics) into a 3D subsurface model of physical properties such as density, conductivity, or magnetisation. It helps infer geological structures, alteration zones, and ore bodies by iteratively adjusting a model to fit observed data. |
| Regolith | Regolith is the layer of loose, unconsolidated material covering solid rock, including soil, sand, gravel, and weathered rock. In the Athabasca Basin, this material lies between the solid basement and the Athabasca Sandstones |
REFERENCES
1 COGEMA Resources Inc, Laurie Project Report on GEOTEM Airborne EM and Magnetic Surveys, March, 2002 (74F10-0035R)
2 Condor Consulting Inc. (2005). Report on Reprocessing and Interpretation of Meanwell GEOTEM data for Dejour Enterprises Ltd. Report No. 74F10-0040
3 Titan Uranium, 2008, 2007 Diamond Drill Program Meanwell Lake, Bishop I & Bishop II Projects (74F10-0049)
5 https://athaenergy.com/atha-energy-provides-updates-on-2024-exploration-program/
7 Scott, B.P., Simmon, W.L., 1986, Compilation Bedrock Geology Lloyd Lake, NTS Area 74F; Saskatchewan Energy and Mines, Report 231
8 Jefferson, C.W., Thomas, D.J., Gandhi, S.S., Ramaekers, P., Delaney, G., Brisbin, D., Cutts, C., Portella, P. and Olson, R.A., 2007. Unconformity-associated uranium deposits of the Athabasca Basin, Saskatchewan and Alberta. Bulletin-geological survey of Canada, 588, p.23.
9 Song, H., Chi, G., Wang, K., Li, Z., Bethune, K.M., Potter, E.G. and Liu, Y., 2022. The role of graphite in the formation of unconformity-related uranium deposits of the Athabasca Basin, Canada: A case study of Raman spectroscopy of graphite from the world-class Phoenix uranium deposit. American Mineralogist, 107(11), pp.2128-2142.
10 Bruce, M., Kreuzer, O., Wilde, A., Buckingham, A., Butera, K. and Bierlein, F., 2020. Unconformity-type uranium systems: A comparative review and predictive modelling of critical genetic factors. Minerals, 10(9), p.738.
11 Gare, A., Benedicto, A., Mercadier, J., Lacombe, O., Trave, A., Guilcher, M., Richard, A., Ledru, P., Blain, M., Robbins, J. and Lach, P., 2021. Structural controls and metallogenic model of polyphase uranium mineralization in the Kiggavik area (Nunavut, Canada). Mineralium Deposita, 56, pp.1263-1296.
12 Li, Z., Chi, G., Bethune, K.M., Eldursi, K., Quirt, D., Ledru, P. and Gudmundson, G., 2018. Numerical simulation of strain localization and its relationship to formation of the Sue unconformity-related uranium deposits, eastern Athabasca Basin, Canada. Ore Geology Reviews, 101, pp.17-31.
13 Bharadwaj, B., Bishop, C.S., Renaud, A.D. and Rowson, L. (2024) *Cigar Lake Operation, Northern Saskatchewan, Canada: National Instrument 43-101 Technical Report.* Prepared for Cameco Corporation, Effective Date: 31 December 2023, Report Date: 22 March 2024.
14 Qiu, H., Lin, H. and Yang, J., 2023. Effects of Paleoregolith and Fault Offset on the Formation of Unconformity-Type Uranium Deposits. Minerals, 13(11), p.1381.
Vancouver
15 Qiu, H.; Lin, H.; Yang, J. Effects of Paleoregolith and Fault Offset on the Formation of Unconformity-Type Uranium Deposits. Minerals 2023, 13, 1381. https://doi.org/10.3390/min13111381
16 Hately, J., Brown, F., 2022, Independent Technical Report on the West Bear Project, Saskatchewan for UEX Corporation, Hatley Engineering and Applied Technologies Inc.
QUALIFIED PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM QMR, 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:
| Power Metal Resources plc | |
| Sean Wade (Chief Executive Officer) | +44 (0) 20 3778 1396 |
| SP Angel Corporate Finance (Nomad and Joint Broker) | |
| Ewan Leggat/Jen Clarke | +44 (0) 20 3470 0470 |
| SI Capital Limited (Joint Broker) | |
| Nick Emerson | +44 (0) 1483 413 500 |
| First Equity Limited (Joint Broker) | |
| David Cockbill/Jason Robertson BlytheRay (PR Advisors)Tim Blythe/Megan Ray | +44 (0) 20 7330 1883 +44 (0) 20 7138 3204 |
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 project portfolios and is seeking large scale metal discoveries.
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.
Property 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 Property 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 drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
