Paterson Lake Property

Overview

The Paterson Lake Property is located 75 km north of Kenora, northwestern Ontario in Paterson Lake and Treelined Lake Areas and can be accessed by English River Road and several logging and drill roads which dissect the property. The Property is composed of 64 mining claims totaling 1198 ha and is approximately 15 km by 5 km in size. The Property hosts multiple commodities: petalite (Li), spodumene (Li), Ta-oxides and feldspar (Rb, Cs).

The Paterson Lake Property is located within the Separation Lake Greenstone Belt which hosts the Separation Rapids Pegmatite Field. The Separation Rapids Pegmatite Field is considered to be the easterly extension of the Winnipeg River – Cat Lake Pegmatite Field which hosts the Tanco pegmatite mine. The Separation Rapids Pegmatite Field is known to contain numerous petalite pegmatites including the Big Whopper, Big Mack and Marko’s pegmatites. Avalon Advanced Materials Inc.’s (“Avalon”) Separation Rapids Lithium Project includes the Big
Whopper petalite pegmatite and is located approximately 1 km west of Power Metals’ Separation Lake Property within the same greenstone belt. Avalon completed a NI 43-101 Technical Report PEA (dated Nov. 10, 2016) on their Separation Rapids Lithium Project. As at Oct. 21, 2016, Avalon’s mineral resource estimate for the Separation Rapids Lithium Project is Measured plus Indicated of 8.00 Mt at 1.29 % Li2O, 39 % total feldspar, 0.006 % Ta2O5, 0.021 %Cs2O and
0.352 % Rb2O and Inferred of 1.63 Mt at 1.42 % Li2O, 39 % total feldspar, 0.008 % Ta2O5,
0.016 %Cs2O and 0.360 % Rb2O. Champion Bear Resources Ltd’s petalite, Ta-oxide and pollucite-bearing Marko’s pegmatite is located near the claim boundary immediately adjacent and to the east of Power Metal’s Property. Marko’s pegmatite likely extends onto Power Metals property.

In 1993-1994, Fred Breaks of the Ontario Geological Survey conducted mapping programs on the Separation Rapids Pegmatite Field (Summary of Field Work and Other Activities 1993 and
1994, Misc. Pap. 162 and 163) and identified multiple petalite pegmatites within the Pegmatite
Field (Figure 1 and 2).

In 1996-2003, Tantalum Mining Corporation (“Tanco”) conducted mapping, lithogeochemical sampling, enzyme leach soil sampling, and drilling with a total of 20 drill holes on Power Metal’s Paterson Lake Property. Highlights of Tanco’s exploration program include:

• Identification of 50 pegmatite dykes in outcrop and drill core of which 11 have been confirmed as petalite-bearing, 8 are beryl-bearing and the remaining dykes need to be further investigated to determine their mineralogy.
• The known petalite pegmatite dykes define three parallel 70° trends which extend from known petalite pegmatite dykes in the east on Champion Bear’s property to known petalite pegmatite dykes on Power Metals property. These trends have not been fully explored on Power Metals’ Property.
• Ten lithogeochemistry anomalies have been identified on the Property of which two anomalies were drill tested and pegmatite was intersected. The remaining lithogeochemistry anomalies have not been drill tested.
• Six enzyme leach soil anomalies were identified on the Property which overlap with the lithogeochemistry anomalies providing evidence for buried pegmatite dykes. One soil anomaly was drill tested and intersected the White Turtle Pegmatite swarm and the J- series pegmatites at depth. The remaining soil anomalies have not been drill tested.
• Of the 20 drill holes completed by Tanco on the Property, only 7 sample intervals were assayed for lithium as the historical target on the Property was tantalum. Petalite and spodumene were identified in the majority of the drill holes.

Tanco’s exploration program resulted in the identification of petalite pegmatite dykes both on surface and at depth and the identification of lithogeochemistry and enzyme leach soil anomalies which can be used to explore for additional buried pegmatites. No exploration has been completed on the Property since 2003. Separation Lake Property has multiple exploration targets with the potential to find a lot more petalite pegmatite dykes.