Uranium Potential to be Developed at Arctic Fox and Isbjorn Properties in Australia
Uranium Potential to be Developed at Arctic Fox and Isbjorn Properties in
Australia
Vancouver, British Columbia‐‐( September 15, 2021) ‐ Megawatt Lithium and Battery Metals Corp.
(CSE:MEGA) (FSE: WR20) (OTC PINK: WALRF) (the " Company" or " Megawatt") has decided to
accelerate developing the uranium potential at its Artic Fox and Isbjorn Projects in Northern Territory,
Australia. Th is follows the receipt of an interim report from the geology team highlight ing the
significant uranium potential within both properties based on reconciling high-grade historical surface
readings with observations following the recent field reconnaissance and sampling program (refer to
Megawatt Completes Fieldwork at Arctic Fox and Isbjorn Rare Earth Element; September 9, 2021).
The Board has decided that developing the uranium and rare earth element potential of both
properties concurrently can potentially create significant incremental shareholder value. Moreover,
this decision is timely as it coincides with rapidly improving fundamentals for the uranium sector which
has propelled the contract price to multi -year highs. Further, the Northern Territory gove rnment is
pro-uranium mining – a stance which it has maintained since 1953.
Cyclical upturn for uranium
Megawatt’s Board notes that over the past 15 -months, the uranium contract price – negotiated
privately between buyers and sellers – has increased signi ficantly and is now trading at multi -year
highs (circa US$42/lb) 1. Notably, a confluence of factors – decarbonisation polices, new reactors
coming onstream, COVID impact on supply, and moderating global inventories – has underpinned the
uranium price re-rate.
In a recent research note, global investment bank, Morgan Stanley2, predicted the uranium price to
reach US$48/lb by 2024, citing several factors:
• Steady increase in global nuclear capacity achieving a 1.7% CAGR 21-25 (factoring in China
adding 22GW to 70GW by 2025) then 2.5% CAGR 26-30;
• An expert panel recommending the EU designate nuclear power a green investment which
would boost interest materially; and
• Structural uranium market deficit due to several mines closing over the last 12 months.
Northern Territory: Favorable jurisdiction for uranium mining
The N orthern Territory has some of Australia’s best -known and high -grade uranium deposits.
Moreover, the Northern Territory government has a long history of allowing uranium mining3, which
commenced in 1953.
Significant uranium potential
Encouragingly, both Megawatt’s properties are in a region with supportive mining communities and
excellent transportation infrastructure to the port of Darwin. Further, the Artic Fox and Isbjorn
properties have significant exploration potential for uranium mineralization (refer to Megawatt
Provides Further Investigative Data for Uranium and REE Prospectivity for Australian Projects; May
31, 20214). Notably, historic surface samples within the tenure provide ready target areas for further
exploration.
Most of these sites were visited during the geology team’s recent field reconnaissance and sampling
program to the Artic Fox and Isbjorn Projects (refer Figure 1). The assays are expected to be
returned within the next few weeks which should provide greater clarity on which areas to focus on
developing moving forward.
FIGURE 1: PHOTOS FROM SITE VISIT TO ARTIC FOX & ISBJORN PROJECTS
Note: Stream sediment sampling northwest end of the Artic Fox
Project
Note: Auger holes and sampling on the auger traverse at Isbjorn
Project
Source: Megawatt geology team
Artic Fox Project
The property is contiguous to Arafura Resources’ (ASX: ARU) world-class Nolans Bore Deposit, which
is a rare earth element-phosphorus-uranium fluorapatite vein system. The mineral resource at
Nolans Bore comprises 56Mt @ 2.6% total rare-earth oxides 162ppm U308 (0.42 lb/tonne U3O8) – this
translates to circa 9,062t uranium oxide5. Further, the Nolans Bore Deposit will encompass a mine,
process plant and critical infrastructure, with commissioning slated for 2022.
Assayed samples of scree material from gneiss source rock, within the middle of Artic Fox, returned
the following high-grade results4: Sample ID N1-4A: 1,000ppm U equating to 1,179ppm U3O8; and
Sample ID N1-4B: 690ppm U equating to 814ppm U3O8.
Incrementally, two assayed rock chips found in ARU’s ground, which are on a contiguous NW-SE
radiometric trend in both properties, returned encouraging results4: Sample #1 ID 5429731: 650ppm
U equating to 767ppm U3O8; and Sample #2 ID 5423492: 270ppm U equating to 318ppm U3O8.
Reinforcing the region’s uranium potential, the Colonial Metals Group (private), which owns a
sizeable footprint directly north of Artic Fox, potentially has several economic orebodies within its
tenure according to a 1973 study6.
FIGURE 2: ARTIC FOX PROPERTY RELATIVE TO REGIONAL PEERS
Source: Megawatt geology team
Isbjorn Project
Within the Isbjorn property, there are assayed alluvial and stream sediment samples at five
locations7 which are all significant and require further on-site follow up. These clearly highlight the
exploration potential for U3O8 mineralization, including:
Sample #1 ID 152798: 593ppm U equating to 699ppm U3O8; Sample #2 ID 132967: 302ppm U
equating to 356ppm U3O8; Sample #3 ID 132966: 292ppm U equating to 344ppm U3O8; Sample #4 ID
152799: 514ppm U equating to 606ppm U3O8; and Sample #5 ID 152800: 586ppm U equating to
691ppm U3O8.
David Thornley-Hall Chief Executive Officer commented: “Following the receipt of the geology team’s
interim report, the Board decided to accelerate developing the uranium potential of the Artic Fox and
Isbjorn Projects. Clearly, both properties are prospective for uranium mineralization, evidenced by
numerous high-grade surface samples that reconciles with the observations from the recent field trip.
In addition, the fundamental outlook for uranium has improved signific antly this year, while the
properties are located in a region with first rate infrastructure and jurisdiction which is pro -uranium
mining.”
Qualified Person
Mr. Geoffrey Reed (MAusMM (CP)) (MAIG), Consultant for the Company, is a qualified person as
defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and has
reviewed the scientific and technical information in this press release.
References
1) Spot Uranium Price. Available at: https://www.bloomberg.com/news/articles/2021-09-
08/uranium-surges-to-six-year-high-as-fund-buys-up-physical-supply
2) UxC Available at: https://www.uxc.com/p/prices/UxCPrices.aspx and “Uranium Week:
Uranium Price Rise Forecast” (7 April 2021) – Available at:
https://www.fnarena.com/index.php/2021/04/07/uranium-week-uranium-price-rise-
forecast/
3) Resourcing the Territory. Available at:
https://resourcingtheterritory.nt.gov.au/minerals/mineral-commodities/uranium
4) “Megawatt Provides Further Investigative Data for Uranium and REE Prospectivity Australian
Projects” (May 31, 2021) Available at:
https://webfiles.thecse.com/megawatt_0531.pdf?MVGF3amnVjpZKzUgBlHctkQrryQKmk9_
5) Arafura Resources Limited 2015 Annual Report. Available at:
https://www.arultd.com/investor/asx-announcements-2021/asx-archive.html
6) The Australian Mineral Development Laboratories (CR 74/19) Sixth Progress Report MP
4976/73 Geochemical Survey, Arunta Area Amdel (December 1973)
7) Crossland Nickel Pty Ltd – Report Number CR2016-0105
Technical Information
All scientific and technical information in this news release has been prepared by, or approved by
Geoffrey Reed, (MAusMM (CP)) (MAIG), Consultant for the Company. Mr. Reed is a qualified person
for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Mr. Reed has not verified any of the information regarding any of the properties or projects referred
to herein other than the Arctic Fox and Isbjorn Properties. Mineralization on any other properties
referred to herein is not necessarily indicative of mineralization on the Arctic Fox and Isbjorn
Properties.
The data disclosed in this news release related to sampling results is historical in nature. Megawatt
has not undertaken any independent investigation of the sampling nor has it independently analyzed
the results of the historical exploration work in order to verify the results. Megawatt considers these
historical sample results relevant as the Company will use this data as a guide to plan future
exploration programs. The Company's future exploration work will include verification of the data
through further sampling.
About MegaWatt Lithium and Battery Metals Corp.
MegaWatt is a British Columbia based company involved in the acquisition and exploration of mineral
properties in Canada. The Company holds a 100% undivided interest, subject to a 1.5% NSR on all base,
rare earth elements and precious metals, in the Cobalt Hill Property, consisting of eight mineral claims
covering an area of approximately 1,727.43 hectares located in the Trail Creek Mining Division in the
Province of British Columbia, Canada. Additionally, the Company has acquired a 60% interest in a
company that indirectly holds a 100% interest (subject to a 2% NSR) in two prospective silver -zinc
projects in Australia, being the Tyr Silver Project and the Century South Silver -Zinc Project (see press
release dated August 13, 2020), an indirect 100% interest (subject to a 1% NSR) in and to certain
mining tenements in Northern Territory and New South Wales, Australia prospective for nickel-cobalt-
scandium and rare earths and a 100% interest (subject to a 2% NSR) in and to the Route 381 Lithium
Property, comprised of 40 mineral claims located in James Bay Territory, north of Matagami in the
Province of Quebec, covering 2,126 hectares (see press release dated February 3, 2021).
Investors can learn more about the Company and team at https://megawattmetals.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
David Thornley-Hall Chief Executive Officer
The CSE does not accept responsibility for the adequacy or accuracy of this release. This press release
includes "forward -looking information" that is subject to a number of assu mptions, risks and
uncertainties, many of which are beyond the control of the Company. Forward -looking statements
may include but are not limited to, statements relating to the trading of the Company's common
shares on the Exchange and the Company's use of proceeds and are subject to all of the risks and
uncertainties normally incident to such events. Investors are cautioned that any such statements are
not guarantees of future events and that actual events or developments may differ materially from
those p rojected in the forward - looking statements. Such forward -looking statements represent
management's best judgment based on information currently available. No securities regulatory
authority has either approved or disapproved of the contents of this news release.