TIDMPOW
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 29(th) 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 GBP81,100) 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
km(2) 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:
P ower 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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