Shares of Power Metal Resources PLC (LON: POW) rallied 16.9% after announcing the acquisition of four new uranium exploration properties in Canada’s Saskatchewan province.
The mining and exploration company own 100% of the new uranium properties since it acquired them via staking and does not owe any further encumbrances or royalties on the properties.
The four properties were acquired for the meagre staking cost of C$6,521 and are located in a region that hosts some of the highest-grade uranium mines.
Power Metal Resources use local geological databases, including airborne magnetics, government bedrock mapping, publicly available assessment report files and the mineral deposits index to identify the properties, which explains the low costs.
The four properties are Tait Hill Uranium Property (“Tait Hill”); Clearwater Uranium Property (“Clearwater”); Soaring Bay Uranium Property (“Soaring Bay”); and the Thibaut Lake Uranium.
However, the area has seven mining license areas within the Athabasca Basin in Saskatchewan.
Power Metal REsources is pretty far from starting mining activities on the properties, given that they have done zero drilling within the area at this point. Still, many are expecting it to discover significant uranium deposits once drilling commences.
Paul Johnson, Power Metal Resources’ CEO, commented: “Power Metal has been reviewing uranium opportunities across three different continents for some time, and today we make our first important public step into the uranium commodity space.”
Adding:
“The Properties have been selected after careful review and are strategically located where there is material evidence of uranium prospectivity as demonstrated by historical exploration reports as well as through various uranium focused government databases.”
Power Metal share price.
Power Metal Resources shares surged 16.92% to trade at 2.28p, rising from Tuesday’s closing price of 1.95p. Yesterday saw the company announce a large-scale gold-in-soil anomaly at the Tati project.
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