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Power Metal - Haneti Nickel PGM Project - Drilling Update

RNS Number : 3179L
Power Metal Resources PLC
11 January 2021
 

12 January 2021

Power Metal Resources plc ("Power Metal" or the "Company")

Haneti Nickel PGM Project - Drilling Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update regarding the maiden 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:

"The Haneti drill programme is progressing well with approaching 50% of the planned 2,000 metres of Rotary Air Blast drilling now complete.

Parallel field mapping and ground geophysics has also proceeded well as we seek to build data on the anomalies to drill with follow up diamond drill holes.

This drilling on the Haneti Project is a highly exciting venture for both Power Metal and Katoro and we look forward to reporting the technical results from this programme over the coming weeks and months."

HIGHLIGHTS:

·    Maiden drill programme involves 2,000 metres of Rotary Air Blast ("RAB") drilling at Haneti with a planned 50 holes of circa 40 metres depth.

 

·    The RAB drill holes are being drilled on profiles across the three target areas in order to provide enhanced information of the subsurface shape and orientation of the ultramafic rock bodies being targeted and allowing for the optimisation of a planned follow-on diamond drill programme.

 

·    By end of drilling on 6 January 2021 a total of 22 holes and 863 metres had been drilled at the Mwaka Hill target, with the plan to move to the Mihanza Hill target week commencing 11 January 2021.

 

·    First two batches of samples from the RAB drilling at Mwaka Hill have been prepared and the first sample batch will be dispatched to SGS Tanzania, an accredited laboratory, for assay testing as soon as the accompanying Quality Assurance /Quality Control standards are received on site (expected this week).

 

·    Drilling commenced on 29th December and has continued daily, with the exception of New Year's Day, for an average daily drilling rate of 96 metres / day.  The delay in commencing the drilling and logistical challenges presented by the current rainy season have not impacted the overall programme with drilled metres now in line with the planned schedule.

 

·    The potential impact on the planned programme of the COVID-19 pandemic and of the January - March rainy season is being monitored carefully on site with no issues encountered at this time. However, there may be some rain related access challenges to be overcome as the drill rig is moved over to the Mihanza Hill target area.

 

·    Concurrently to the drilling programme, geological fieldwork is continuing with:
 

-     Geological mapping of surrounding ultramafic target areas; and detailed mapping at Mwaka Hill and Mihanza Hill.

 

-     Geophysics:  three ground magnetic survey lines and one radiometric survey line completed over the Mwaka Hill drill fence profile with the same work due to be started at Mihanza Hill.

 

-     Fieldwork results will supplement the existing geophysics data, helping to optimise the planned RAB drill hole placement, and in conjunction with the results from the RAB drilling programme, will assist in targeting for the currently planned follow-up diamond drilling programme.

 

·    Power Metal's pro-rata costs contribution in respect of the programme is approximately US$110,000 (circa £81,100) and of this 50% has been paid in advance and 50% remains to be paid later.  The cost of Power Metal's contribution is fully covered from existing cash resources.

 

·    Images from Haneti may be viewed on a Gallery section of the Company's website through the following link: https://www.powermetalresources.com/p/230/haneti-project-gallery

 

HANETI PROJECT - NICKEL SULPHIDE AND PGM TARGETS - FURTHER INFORMATION

PROJECT OVERVIEW

The Haneti Nickel Project 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, 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

An initial three target areas have been selected for RAB drilling; Mihanza Hill; Mwaka Hill; and Igari Hill. These targets are based on the recommendations of the 2012 airborne electromagnetic ("AEM") geophysics survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings.

The planned 2,000m RAB drilling programme will consist of approximately 50 holes drilled on linear fences across the targets. The programme will seek to verify the existence of near surface nickel sulphide mineralisation at each target whilst increasing the geological understanding such that the orientation and the meterage of a planned follow-up diamond drill programme can be optimised to confirm the scale of any nickel sulphide mineralisation.

The drilling will be conducted by an experienced Tanzanian 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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

 

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

 

SP Angel Corporate Finance (Nomad and Joint Broker)

 

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

 

SI Capital Limited (Joint Broker)

 

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

 

First Equity Limited (Joint Broker)

 

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

 

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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