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Katoro Gold PLC - Haneti Nickel Sulphide Drill Programme Finalised

RNS Number : 2043U
Katoro Gold PLC
27 July 2020
 

Katoro Gold plc (Incorporated in England and Wales)

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

('Katoro' or 'the Company')

 

 

27 July 2020

 

Katoro Gold plc ('Katoro' or the 'Company')

 

HANETI PROJECT - NICKEL SULPHIDE DRILL PROGRAMME FINALISED

 

Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to announce details of the planned confirmatory drilling programme targeting nickel sulphides at the Haneti Nickel Project in Tanzania ('Haneti' or the 'Project').

 

HIGHLIGHTS:

Haneti Project

·    The Haneti Nickel Project covers an area of approximately 5,000 km2 in central Tanzania and comprises tenements (prospecting licences, offers and applications) prospective for nickel, platinum-group-elements and gold.

·    The main prospective belt of rocks within the Haneti Project is the, linear dyke-like, Haneti-Itiso Ultramafic Complex ('HIUC'), which sporadically crops out over a strike length of 80 km.

Exploration Rationale

·    The JV partners being Katoro & Power Metal Resources plc ('Power Metal') are to undertake a phased exploration programme to assess the potential for nickel sulphide mineralisation within the HIUC.

·    Confirmation of targeted geological structures and the discovery of a new nickel sulphide deposit or deposits would generate considerable commercial value for the JV partners.

·    Exploration work will align with and complement discussions with third parties, who have expressed interest in the Haneti Project.

Drill Programme

·    First stage exploration programme verifying and drill-testing potential chonolith-type nickel sulphide mineralisation within the HIUC.

·    A short shallow (100m) rotary air blast drill programme will seek to verify three near-surface targets ahead of a confirmatory deep (300m) diamond drilling programme.

·    Airborne geophysics over the wider project area will seek to delineate additional deep-seated targets.

Programme Funding

·    Katoro's share of the outlined drill programme is to be funded from existing cash resources, following the Company's recent £1.1m financing.

 

Louis Coetzee, Chairman of Katoro Gold plc commented: "The Haneti project, in the Board's view, represents a very interesting exploration opportunity and we are very excited to embark on the first exploration drill programme for Haneti, during a time where we see renewed interest and excitement in nickel.

 

"The Haneti project encompasses a significant project area within which Katoro has previously identified a number of very promising drill targets that are prospective for possible nickel sulphide deposit(s). Our first drill programme will aim to enhance our existing understanding of the geological characteristics of the Project and to potentially identify the existence of nickel sulphides. We have opted for a diligent approach in the form of a two-stage drill programme, using shallow rotary air blast drilling to verify the proposed targets which will be followed, subject to results from the initial drill programme, by a follow-on deeper diamond drill programme.

 

"Preparations are currently underway for the launch of the drill programme and we look forward to announcing mobilisation, which will not only mark a historic milestone in the execution of the Haneti exploration programme but also an exciting point for the Haneti Joint Venture with Power Metals PLC.

 

"I look forward to providing further updates and to inform the market on our future project strategies and plans for Haneti in due course."

 

HANETI PROJECT OWNERSHIP STRUCTURE

Katoro Gold currently holds a 75% interest in the Project with a 25% interest held by JV partner Power Metal Resources plc (LON:POW).

 

Power Metal also holds an option to increase its interest in the Project from 25% to 35% through a payment to Katoro Gold of £25,000 by 31 August 2020.

 

PROJECT OVERVIEW

The Haneti Project ('Haneti') covers an area of approximately 5,000 km2 in central Tanzania approximately 88 km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, platinum-group-elements and gold.

 

One of the key exploration objectives for the JV partners at the Haneti Project is seeking to delineate the potential for economic nickel mineralisation in central Tanzania.

 

HANETI GEOLOGY AND NICKEL PROSPECTIVITY

The main prospective belt of rocks within the Haneti Project is the linear dyke-like, Haneti-Itiso Ultramafic Complex ('HIUC'), which sporadically crops out over a strike length of 80 km and mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite) with metabasic rocks such as metagabbro and metadolerite.

 

Geologically, the Haneti tenements straddle the boundary between the Archaean Dodoman Craton to the south‐west and gneisses of the Palaeo‐Proterozoic Usagaran Orogenic Complex to the northeast.

 

Bordering the Haneti block to the west, a new greenstone belt, the Londoni Greenstone Belt has been recognised in recent years within the Archaean Dodoman System. This greenstone geology extends southeast into the Haneti project where work on third party mining claims that occur within the Haneti prospecting licence Offer area, PLA 1162, has reported positive results.

 

HISTORIC EXPLORATION

The Haneti area was first explored in 1931 by a private prospector who collected a Ni‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green‐stained veins rich in Ni‐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.

 

An airborne electromagnetic ('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 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 subcrop.

 

PROPOSED EXPLORATION DRILL PROGRAMME

Three preliminary target areas have been selected for exploratory diamond drilling; Milhanza Hill; Mwaka Hill; and Igari Hill, based on the recommendations of the 2012 AEM survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings.

 

In order to maximise the chances of intersecting mineralisation, the diamond drilling will be preceded by a 20 hole programme of confirmatory rotary air-blast ('RAB') drilling.  This phase will consist of 2,000 metres of RAB drilling consisting of two drill fences, 10 x 100 metre spaced, 100 metre deep holes.

 

The RAB drilling will seek to verify the existence of near surface mineralisation whilst increasing the geological understanding such that the orientation and the meterage of the follow-up diamond drill holes can be optimised to confirm the scale of potential massive sulphide mineralisation.

 

All RAB drill samples will be subject to multi element and base metal analysis on three metre composites with select samples analysed for platinum group elements.

 

The exact number and meterage of diamond drill holes will be refined by the RAB drill studies however the initial plan is for a minimum of three, 300 metre deep diamond holes.

 

The diamond holes are planned to provide a full intersection through the ultramafic inclusion and to provide fresh rock samples for detailed geochemical, petrographic and isotope analysis.  The aim is to identify nickel sulphide mineralisation.

 

In addition, an airborne Versatile Time Domain Electromagnetic ('VTEM') geophysics survey with the capability to generate targets at a depth of several hundred metres, is planned, to provide coverage of a greater proportion of the Haneti Nickel Project.

 

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

 

**ENDS**

 

For further information please visit www.katorogold.com or contact:

 

 

Louis Coetzee

 

louisc@katorogold.com

Katoro Gold plc

Executive Chairman

Bhavesh Patel

Andrew Thomson

+44 20 3440 6800

RFC Ambrian Limited

Nominated Adviser

Nick Emmerson

Sam Lomanto

 

+44 (0) 1483 413 500

 

SI Capital Ltd

 

Broker

 

Isabel de Salis

Beth Melluish

+44 (0) 20 7236 1177

St Brides Partners Ltd

Investor and Media Relations Adviser

 


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