Power Metal confirms favourable geological conditions at Badger Lake

(Sharecast News) - Power Metal Resources said on Monday that initial drilling at its Badger Lake uranium joint venture had confirmed favourable geological conditions for mineralisation, although no uranium was intersected in the programme. The AIM-traded company completed a four-hole diamond drilling campaign totalling 1,922 metres, targeting fault structures and geological analogues of major uranium deposits.

While no elevated radioactivity was encountered, the programme identified "highly encouraging" hydrothermal alteration, including bleaching and preserved palaeoweathering profiles, which were considered key indicators of potential uranium-forming systems.

"This initial drill programme has successfully validated our geological models for Badger Lake," said chief executive Sean Wade.

"While still early in our exploration, encountering such geological conditions is a significant milestone for the project.

"We look forward to sharing the laboratory results with the market as we plan our next steps."

The drilling intersected features associated with unconformity-related uranium systems, including redox fronts and structurally controlled alteration zones beneath the Athabasca sandstone.

Power Metal said the findings supported the presence of a potentially fertile system, particularly along the Western Shear Zone, where alteration indicative of fluid mixing processes was observed.

Despite the absence of mineralisation, Power Metal said the geological and mineralogical results reinforce its exploration model and highlight the prospectivity of the project.

Core samples had been submitted for geochemical, mineralogical and petrophysical analysis, with results expected to inform the next phase of exploration.

The group added that ongoing laboratory work, including testing at facilities in Saskatchewan and Canada, would help refine its understanding of the system and guide future drilling plans.

At 1135 BST, shares in Power Metal Resources were flat at 13.75p.

Reporting by Josh White for Sharecast.com.

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