Power Metal Resources plc said it was reviewing strategies, including a sale, for its Reitenbach uranium property at Athabasca in northern Saskatchewan, Canada.
STRATEGY
The company has also recruited a uranium-focused team member to advance its interests.
Reitenbach (146km2) is one of Power Metal’s seven 100% owned interests in its Athabasca portfolio covering a total 417.24km2 (41,724 hectares).
Power Metal recently completed an in-depth historical data compilation across its entire uranium portfolio.
Chief executive Paul Johnson today said that the company was now reviewing “multiple strategic outcomes for the property, including the potential outright sale of the asset”.
REITENBACH
Reitenbach is close to, or has contiguous claim borders, with several uranium companies including Forum Energy Metals Corp, Cameco Corp and Appia Energy Corp.
Power Metal said that two historic reports highlighted the similarities between Reitenbach and the Rossing Uranium mine in Namibia “known as the world’s longest running open-pit uranium mine”.
The average grade mined from Rossing during 2020 was 335ppm uranium.
Reitenbach is prospective for both porphyry-style (including thorium-molybdenum rare earth element) and metasedimentary-hosted uranium mineralisation.
Historic results highlighted a NE-SW trending boulder train located in the southern part of the Reitenbach, with results up to 5,720ppm uranium (including a result of 2,520ppm U).
The company said it continued interpretation work across its Athabasca portfolio.
VALUE CREATION
“Power Metal has seen considerable interest in the company’s uranium properties surrounding the Athabasca basin, and we see significant value creation potential through the disposal of certain interests either through direct sale to third parties or the creation of new listings in the London markets,” added Mr Johnson.
“We are therefore accelerating our property review work to assemble in-depth datarooms for each property.”