TIDMPOW
RNS Number : 6496U
Power Metal Resources PLC
07 April 2021
7 April 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Haneti Nickel PGM Project - Drilling Update
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."
HIGHLIGHTS:
-- A maiden diamond drilling programme is now planned to test
for nickel and PGM sulphide mineralisation at depth following the
successful completion of the shallow RAB drilling programme at
Mihanza Hill and Mwaka Hill and the identification of intensely
weathered nickel-copper-magnetite veins at a new outcrop at Mihanza
Hill.
-- Following the completion of the 50 hole (1,965m) shallow RAB
drilling programme at Mihanza Hill and Mwaka Hill, announced 26
January 2021, the assay results have now been received from SGS
Laboratories and a decision has been made to progress to a diamond
core drilling programme in order to test for nickel sulphide
mineralisation at depth.
-- The objective of the RAB drilling programme was to delimit
the extent of ultramafic intrusive geology below nickel enriched
laterite and regolith cover, on two approximately 1km long
transects orientated across time-domain electromagnetic ("TDEM")
geophysics anomalies previously identified at Mihanza Hill and
Mwaka Hill (the "Targets").
-- The deeply weathered nature of the rocks intersected by the
shallow RAB drilling meant that no fresh un-altered rock or primary
nickel sulphide mineralisation was delineated though the programme
has successfully allowed the determination of gneiss-ultramafic
serpentinite hangingwall/footwall contacts helping to further
constrain the diamond drilling target area.
-- Importantly, concurrent surface mapping has identified small
scale nickel-copper-magnetite gossanous veins at a new outcrop at
Mihanza Hill. The geological team consider this discovery
substantiates the potential for primary nickel rich sulphide
mineralisation within the underlying ultramafic body, underpinning
the requirement to progress to a deeper drilling programme.
-- Diamond drilling is now planned to a depth of at least 400m
in order to intersect the TDEM and magnetic geophysics anomalies,
to test for primary sulphide mineralisation and to obtain fresh
unaltered rock samples for mineralogical analysis. Further details
on the planned diamond drill programme and the starting date will
be provided shortly.
HANETI PROJECT - NICKEL SULPHIDE AND PGM TARGETS - FURTHER
INFORMATION
PROJECT OVERVIEW
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.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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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