Decision to Proceed with Diamond Drilling Programme
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update regarding the maiden rotary air blast (“RAB”) drill programme targeting the discovery of nickel and platinum group metals (“PGM”) at the Haneti Nickel PGM Project (“Haneti” or the “Project”) in Tanzania.
Power Metal holds a 35% ownership interest in Haneti with 65% held by Katoro Gold plc (LON:KAT)(“Katoro”).
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“We are delighted to report that following receipt of the results from the recently completed RAB drill programme a decision has been made to advance the Haneti Nickel PGM Project to deep diamond drilling.
The extra geological information provided by the recent shallow drilling results and the discovery of new gossanous nickel-copper-magnetite veining at Mihanza Hill, have confirmed that we should proceed to deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation at Haneti.
With the diamond drilling programme design and drilling contractor appointment currently underway we look forward to providing further updates shortly.”
HANETI PROJECT – NICKEL SULPHIDE AND PGM TARGETS – FURTHER INFORMATION
The Haneti Nickel Project covers a substantial area of interest in central Tanzania approximately 88km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, PGMs and gold.
One of the key exploration objectives for the JV partners at Haneti is to delineate the potential for economic nickel mineralisation on the linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”) which sporadically crops out over a strike length of 80 km through the centre of the tenement holding. The HIUC mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite and is being targeted for a Chonolith-Type Nickel exploration model.
RAB DRILL PROGRAMME
The RAB drilling programme focussed on the Mihanza Hill and Mwaka Hill targets which were selected based on the recommendations of the 2012 airborne electromagnetic (“AEM”) geophysics survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings. Drilling was focused on Mihanzi Hill and Mwaka Hill for this campaign, as they were considered to be the priority targets at this stage. Mihanza Hill forms a discrete, coherent and robust Ni-Cu-Cr (PGE) soil anomaly.
The 1,965m RAB drilling programme consisted of 50 holes drilled on linear fences across the Targets. The programme successfully increased the geological understanding at the two localities such that the orientation and the meterage of the planned follow-up diamond drill programme can now be optimised to confirm the scale of any nickel sulphide mineralisation.
The RAB programme was conducted by an experienced Tanzanian drilling company in line with international best practice and in accordance with health and safety and COVID-19 precautions.
HISTORIC NICKEL EXPLORATION
The Haneti area was first explored in 1931 by a private prospector who collected a nickel‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green stained veins rich in nickel‐silicates and containing several percent nickel.
In the early 1960s the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt.
Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013.
Additionally, an AEM geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.
A study commissioned with a consultant expert in ultramafic rock geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso‐Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.
In 2019 a number of soil samples, collected during the 2013 exploration programme, were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic sub-crop (as announced by Katoro on 30 January 2019.)
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
7 April 2021