Power Metals Completes Option Agreement for 100% Ownership of Paterson Lake and Gullwing-Tot Lakes Li-Cs-Ta Properties and Provides Corporate Update
access_time December 24, 2020
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VANCOUVER, BRITISH COLUMBIA – (December 24th, 2020) -Power Metals Corp. (“Power Metals Corp.” or the “Company”) (TSX VENTURE:PWM)(FRANKFURT:OAA1)(OTC:PWRMF) is pleased to announce that it has entered into an amending agreement with Exiro Minerals Corp. regarding the remaining payments due by the Company to acquire the Paterson Lake and Gullwing-Tot Lakes properties.
To exercise the option to acquire the properties, the Company and Exiro Minerals have agreed that the remaining cash payment and share issuance due under the March 1, 2017 property option agreement (as amended) will be settled by the Company delivering 920,000 common shares of the Company. Exiro has agreed to accept equity in lieu of cash to complete the option agreement. Power Metals will own the two properties 100% upon shares payment. In addition (i) upon a feasibility study being completed on a property, Power Metals will make an additional $450,000 payment (in cash or shares at Power Metals’ election); and (ii) Exiro will be entitled to a 0.5% NSR royalty on all production from the Properties.
The amending agreement is subject to TSX Venture Exchange approval.
Paterson Lake Property is located within the Separation Rapids Greenstone Belt, north of Kenora, northwestern Ontario. Paterson Lake Property has Li-Cs-Ta mineralization with multiple petalite (Li ore mineral) and Ta-oxide pegmatites including Marko’s Pegmatite and Jesse’s Pegmatite (Power Metals press releases dated Oct. 29, 2018 and Nov. 28, 2018). Marko’s pegmatite also contains pollucite (Cs ore mineral).
Power Metals has two lithium drill ready targets at Paterson Lake located along two parallel northeast-southwest petalite pegmatite trends:
Marko’s pegmatite
Jesse’s pegmatite
Highlights of Marko’s pegmatite include:
over 268 m strike length on surface
3.36 to 4.43 % Li2O range for 13 grab samples.
559 to 1398 ppm Ta range for 5 grab samples
19 historic drill holes on Power Metals’ Paterson Lake Property
historic drilling showed that there is both Lithium and Tantalum mineralization at depth on the Marko’s pegmatite and it is not just one pegmatite dyke but two: Marko’s and North Marko’s.
Highlights of Jesse’s pegmatite:
discovered in June 2018 by Power Metals geologists
consists of at least 4 parallel east-west trending dykes exposed on surface: North, Between North and Jesse’s, Jesse’s and South Dykes
190 m between North and South Dykes
1.01 to 3.26 % Li2O for 12 grab samples
Up to 271 ppm Ta in grab samples
Gullwing-Tot Lakes Property located north of Dryden, northwestern Ontario also has Li-Cs-Ta mineralization with spodumene (Li ore mineral) and Ta-oxides in Gullwing Lake pegmatite and Tot Lake pegmatite. Tot Lake also contains pollucite (Cs ore mineral) (Power Metals press release Sept. 10, 2018).
The assay highlights from grab samples from Tot Lake pegmatite include:
4.58 % Li2O from quartz – spodumene core, sample 159056
2.62 % Li2O from quartz – spodumene core, sample 159057
1.68 % Li2O and 233 ppm Ta from pink spodumene pegmatite zone, sample 1590235
498 ppm Ta from albitized K-feldspar zone, sample 159238
The assay highlights from grab samples on the Gullwing North outcrop include:
6.78 % Li2O from pure spodumene sample, sample 159082
0.73 % Li2O from spodumene – albite – quartz sample, sample 159084
759 ppm Ta from large Ta-oxide crystals in albite unit, sample 159254
Power Metals completed 3 weeks of channel sampling and mapping on the Tot Lake pegmatite in the fall of 2020. Results are pending.
Further Corporate Update
On September 8, 2020, Power Metals announced that it entered into a Letter of Intent with Sinomine Resource Group Co., Ltd of Beijing, China whereby Sinomine will partner with Power Metals to further the exploration and development of Power Metals’ Case Lake, Paterson Lake and Gullwing-Tot Lakes properties. Sinomine’s goal is to find further cesium and lithium mineral resources for commercial mining other than its TANCO mine, Manitoba through a strategic partnership with Power Metals. The TANCO pegmatite has been mined for tantalum ore concentrates, pyroceramic spodumene (Li), pollucite (Cs) and rubidium since the late 1960’s. Ongoing COVID-19 travel restrictions has delayed site visits by Sinomine personnel to Power Metals properties. We will provide an update to market once dates of travel will be allowed by the Province of Ontario.
Paterson Lake
Paterson Lake Property is located in Paterson Lake and Treelined Lake Areas, 60 km north of Kenora, NW Ontario close to the Ontario-Manitoba border. Paterson Lake Property is located within the Separation Rapids Greenstone Belt and hosts multiple petalite-bearing pegmatite dykes. The Property was optioned from Exiro Minerals Corp. in 2017 (Power Metals press release dated April 20, 2017). Avalon