Ground geophysics completes at Power Metal Resources and Kalahari Key’s Botswana asset (POW)

Power Metal Resources (LSE:POW) revealed that ground geophysics has completed at its part-owned Molopo Farms Complex (MFC) project in Botswana on Tuesday. The work was completed by Kalahari Key and will be used to design a drilling programme at the nickel, copper, and platinum group metals (PGM) asset.

In total 11 loops were conducted on 10 of the best target areas for nickel and PGM mineralisation identified in a recent helicopter-supported, high-resolution electromagnetic survey. The data collected is now being interpreted to identify top priority drill targets by the end of August.

The MFC project consists of three exploration licences spanning 2,725km2 in southern Botswana. Kalahari Key’s primary target is nickel and platinum mineralisation in the geophysically-delineated, major shear/feeder zone through the centre of the project. The business will also seek to identify massive or disseminated nickel sulphide deposits at the base of, or within the ultramafic zone of the MFC moving forward.

Power Metal has an 18.26pc shareholding in Kalahari Key. It also has a right by 31 December 2019 to elect to earn into a 40pc direct interest in MFC through an investment of $500,000 in the project by 31 December 2020. If it chooses to do this, the firm will hold an effective economic interest of 50.96pc in the project.

Alongside its geophysics work, Kalahari Key is preparing relevant environmental submissions for MFC as required in Botswana ahead of drilling. Power Metal noted that the business is also in discussions with drilling companies to ensure that contractors are in place and able to begin drilling when required.

Paul Johnson, executive director of Power Metal, said: ‘I am pleased to advise that, as previously indicated, the KKME team have now completed the ground geophysics programme. The extensive data collected from the 11 loops, covering the ten best target areas, will now be interpreted with a view to designing a drill programme to test the key targets. I look forward to receiving the results of that interpretation process which are expected to be received by the company later this month.

To read our recent report on the MFC project and the opportunity it offers to Power Metal Resources and its investors, please click here.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

REPORT: Power Metal Resources- Unlocking Haneti’s transformational potential

Earlier this year, Power Metal Resources added Tanzania to the growing list of African countries where it is exploring for the key battery metals powering the electrification of the world. The company entered an option to buy up to a 35pc position in a project owned by AIM-listed Katoro Gold (LSE:KAT) called Haneti that is thought to be prospective for both nickel and lithium.

Together, the two businesses have pooled their collective experience to launch immediately into an accelerated programme of work designed to inform a drilling campaign at Haneti. In this report, Power Metal’s executive chairman Paul Johnson, who joined alongside chairman Andrew Bell as part of a restructuring earlier this year, explains why he thinks this work could be ‘transformational’ for the firm.

CLICK HERE TO DOWNLOAD YOUR COPY OF THE REPORT

Power Metal reveals option to acquire early-stage DRC copper-cobalt project(POW)

Power Metal Resources’ (LSE:POW) busy week continued on Thursday with the news that it had purchased an option to acquire a majority stake in a DRC-based copper-cobalt project.

The business has paid $5,000 for a 60-day exclusivity period over licence PR 13479, during which it will carry out legal and technical due diligence and prepare JV documentation. It will also complete a termite mound sampling programme to test cobalt mineralisation at a greater depth than the 27-30cm soil sampling depth.

If Power Metal decides to exercise its option, it will pay $50,000 to the licence’s current owner SCOMIS – a local Congolese firm – in exchange for a 70pc stake. The organisation would then pay a further $250,000 to SCOMIS once drilling begins.

PR 13470 covers around 3.5km2 in the Lualaba district of the DRC and is based some 5km north of the producing Tondo cobalt and copper mine owned by a Lerexcom. According to Power Metal, PR 13470 sits in the same geology as Tondo in a known cobalt-prospective area that is attracting increased exploration attention.

What’s more, early-stage soil sampling has already shown the presence of anomalous cobalt at 500-750 parts per million on the licence. One early sample was even found to contain more than 4pc of the metal by an x-ray fluorescence spectrometer. The area has also been found to contain dispersed sections or fragments of R2 mineralisation, a part of the Roan sequence that hosts much of Congo’s cobalt. Some of these sections are visible locally as elevated ridges.

Power Metal’s executive director Paul Johnson described the option as ‘very exciting’, adding that the company’s goal at the licence is to prove up a shallow, open-pittable, and high-grade resource.

‘This license is in a highly prospective area for copper-cobalt, near an existing mine, and is primarily a cobalt target. We are fortunate to have secured this option at an early stage when the presence of anomalous cobalt has already been proven. However, the shallow depth at which soil sampling has been carried out means the results derive from material where the mineralisation may have been reduced by weathering,’ added Johnson.

‘If we test deeper in the regolith, we may get results of higher tenor that show more of the potential of the License. Initially we propose to do this by termite mound sampling across the license. That may be followed by a small number of pit excavations to take us down to the bedrock, which we expect to encounter at about a depth of 10m.’

Thursday’s release came just a day after Power Metal revealed substantial ground operation progress at the Molopo Farms Complex (MFC) project in Botswana.

The business said that Kalahari Key, owner of the nickel, copper, and platinum group metals project, has largely completed ground geophysics work to identify priority drill targets for the next stage of exploration. The work follows a high-resolution EM and magnetic survey completed in May last year that identified 17 conductor targets within the project’s feeder/shear zone.

Kalahari Key expects to complete its ground geophysics work by early August, with results interpretation expected to commence shortly after that. A full update will be provided to the market detailing the outcome of the ground geophysics and the priority drill targets upon completion.

Power Metal’s exposure and interest in MFC comes through its 18.26pc position in Kalahari Key. The firm also has the right by 31 December this year to earn-in to a 40pc direct investment in the project by committing to spending $500,000 on its development by 31 December 2020. If it chooses to exercise this option, then it will hold a 50.96pc effective economic interest in MFC.

Meanwhile, on Monday, the business welcomed the news that Katoro Gold (LSE:KAT), in which it owns a 5.95pc stake, had received third-party interest in two of its gold projects in northern Tanzania.

Katoro said it had received expressions of interest around a purchase of - or joint venture agreement on - its Imweru and Lubando gold projects in the Lake Victoria Goldfields. Although no suitable agreement has yet been made, Katoro said the interest shows a ‘clear appreciation of the inherent value’ of the projects, which have a combined JORC-compliant gold resource of 754,980oz.

Power Metal also owns a 25pc direct interest in Katoro’s Haneti Nickel project, which can be increased to 35pc through a £25,000 cash payment. Based in Central Tanzania, Haneti is a nickel sulphide project made up of near-contiguous tenements covering around 5,000km 2 of land.  Much of the project lies on top of a highly-prospective belt of rocks called the Haneti-Itsio Ultramafic Complex (HIUC), which is made up of metamorphosed ultrabasic rocks like dunite and peridotite called serpentinites.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Power Metal Resources advances following strong exploration progress at Botswana investment (POW)

Power Metal Resources (LSE:POW) inched up to 0.54p on Tuesday after updating investors on the strong ground operation progress being made at the Molopo Farms Complex (MFC) project in Botswana.

The business said that Kalahari Key, owner of the nickel, copper, and platinum group metals project, has largely completed ground geophysics work to identify priority drill targets for the next stage of exploration. The work follows a high-resolution EM and magnetic survey completed in May last year that identified 17 conductor targets within the project’s feeder/shear zone.

Kalahari Key expects to complete its ground geophysics work by early August, with results interpretation expected to commence shortly thereafter. A full update will be provided to the market detailing the outcome of the ground geophysics and the priority drill targets upon completion.

Power Metal’s exposure and interest in MFC comes through its 18.26pc position in Kalahari Key. The business also has the right by 31 December this year to earn-in to a 40pc direct interest in the project by committing to spending $500,000 on its development by 31 December 2020. If it chooses to exercise this option, then it will hold a 50.96pc effective economic interest in MFC.

Paul Johnson, executive director of Power Metal, said he was ‘impressed’ by the pace at which Kalahari Key is advancing exploration at MFC, adding:

‘This important groundwork is designed to initially follow up 11 areas within the 17 conductor targets identified from the helicopter Electromagnetic ("EM") Survey and narrow down to a number of high-profile drill targets. In this region mineral deposits are under sand cover with no surface expression so the application of high-resolution geophysics is vital in identifying the most attractive drill locations.

‘I am hugely excited by the opportunity the MFC project presents for our shareholders, both through the POW 18.26% shareholding in Kalahari Key and the potential for the Company to earn in to a 40% direct project interest. Consequently, we await with some excitement the outcome of the ground geophysics programme and the important results interpretation.’

MFC consists of three exploration licences spanning 2,725km2 in southern Botswana. Kalahari Key’s primary target is nickel and platinum mineralisation in the geophysically-delineated, major shear/feeder zone through the centre of the MFC. The business will also seek to identify massive or disseminated nickel sulphide deposits at the base of, or within the ultramafic zone of the MFC moving forward. To read our recent report on Power Metals’ deal with Kalahari Key and the opportunities offered by the MFC project, please click here.

Tuesday’s news comes just a day after Katoro Gold (LSE:KAT) confirmed third-party interest and expanded exploration plans for two of its gold projects in northern Tanzania. The £1.92m business said that it had received expressions of interest around a purchase of - or joint venture agreement on - its Imweru and Lubando gold projects in the Lake Victoria Goldfields.  Although no suitable agreement has yet been made, Katoro said the interest shows a ‘clear appreciation of the inherent value’ of the projects, which have a combined JORC-compliant gold resource of 754,980oz.

With gold prices rising and a recent review confirming exploration upside potential at both Imweru and Lubando, Katoro said the best way to create near-term value would be to build the projects’ resource inventory. Indeed, it is targeting an initial target of 1MMozs of gold across both sites, an increase of nearly a third on existing resources.

Power Metal owns a 5.95pc stake in Katoro as well as a 25pc direct interest in the firm’s Haneti Nickel project. Based in Central Tanzania, Haneti is a nickel sulphide project made up of near-contiguous tenements covering around 5,000km 2 of land. Much of the project lies on top of a highly-prospective belt of rocks called the Haneti-Itsio Ultramafic Complex (HIUC), which is made up of metamorphosed ultrabasic rocks like dunite and peridotite called serpentinites.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Katoro Gold unveils major expansion and value-creation plans for Tanzanian gold projects (KAT, POW)

Monday morning saw Katoro Gold (LSE:KAT) jump by more than a fifth to 1.14p a share after confirming third-party interest and expanded exploration plans for two of its gold projects in northern Tanzania.

The £1.92m business said that it had received expressions of interest around a purchase of - or joint venture agreement on - its Imweru and Lubando gold projects in the Lake Victoria Goldfields. Although no suitable agreement has yet been made, Katoro said the interest shows a ‘clear appreciation of the inherent value’ of the projects, which have a combined JORC-compliant gold resource of 754,980oz.

With gold prices rising and a recent review confirming exploration upside potential at both Imweru and Lubando, Katoro said the best way to create near-term value would be to build up the projects’ resource inventory. Indeed, it is targeting an initial target of 1MMozs of gold across both sites, an increase of nearly a third on existing resources.

The firm’s focus will initially be on Imweru, as it is the more advanced of the two sites.  Here, it will work to identify the lowest-cost route to adding ounces and quantify gold in extensions to mineralisation along strike and at depth. As it stands, just 30pc of Imweru’s priority one exploration ground has been explored fully. Meanwhile, the site’s previous owner Kibo Energy estimated that its resource expansion potential could sit at between 40pc and 80pc.

Alongside this work, the business said it would continue to work with Tanzania’s Ministry of Minerals on completing a pre-feasibility study for Imweru and securing all relevant mining approvals. Katoro’s executive chairman Louis Coetzee said that reaching this initial 1MMoz resource target across Imweru and Lubando is not only ‘entirely feasible’, but will demonstrate the ‘substantial nature’ of its gold projects.

‘The board believes that Imweru has the potential to deliver 50,000oz per annum gold production should the conditions allow and suitable financing for development and construction be secured,’ he added. ‘In this regard, we continue to work with the Tanzanian authorities to chart the correct course for the development of the Projects in a beneficial manner for the region and country, and also in a manner that generates commercial returns for the company supporting the investment decision required for mine development.’

The news also prompted a response from Power Metal Resources (LSE:POW) which holds a 5.95p stake in Katoro. The organisation, which was sitting at 0.45p in midday trading, said it was ‘pleased to draw investors’ attention’ to Katoro’s update.

Power Metal also owns a 25pc direct interest in Katoro’s Haneti Nickel project, which can be increased to 35pc through a £25,000 cash payment. Based in Central Tanzania, Haneti is a nickel sulphide project made up of near-contiguous tenements covering around 5,000km 2 of land.  Much of the project lies on top of a highly-prospective belt of rocks called the Haneti-Itsio Ultramafic Complex (HIUC), which is made up of metamorphosed ultrabasic rocks like dunite and peridotite called serpentinites.

Before Katoro or Power Metal’s involvement at Haneti, previous owners such as Kibo Mining (LSE:KIBO) had completed around $1.5m worth of exploration work.  These efforts identified strong prospectivity for nickel in the block across four key drill-ready targets along with additional gold, cobalt, platinum credits, and some significant lithium anomalies.  The most prospective of these sites is Mihanza Hill, which covers an 80km-long ultramafic zone known as ‘the central zone’ and has returned grades of 13pc nickel and 2.33 grams per tonne of palladium and gold.

Beyond these efforts, additional, independent work by Western Geophysics proposed that Haneti could host a significant nickel sulphide deposit.  Likewise, the Geological Survey of Tanzania completed a high resolution airborne geophysical survey covering c.12,000km between 2012 and 2013 that extended the footprint of the project’s known nickel sulphide-prospective belt.

After acquiring Haneti in November last year, Katoro immediately began a review of all the historic work completed on the block. This led it to the exciting conclusion that the asset may host a chonolith-type nickel sulphide deposit.

Katoro and Power Metal, which entered Haneti earlier this year, are now working to establish whether disseminated or massive sulphide mineralisation exists across the project’s key targets ahead of drilling.

Towards the end of May, the pair revealed that 1,500 soil samples from the project had extended the strike length of its existing exploration targets and well as identifying an entirely new target.  Following this, in June, the partners revealed that they had decided to carry out a drill programme on two of Haneti’s key targets – Mihanza Hill and Mwaka Hill.  This decision came after 3D modelling on a magnetic anomaly at Mihanza Hill.

Finally, in July, Katoro and Power Metal announced that they had identified several pegmatite outcrops within two abandoned artisanal pits at Haneti during exploration work.  These were found to contain coarse quartz, red and black tourmaline and- most critically- lepidolite - which contains significant amounts of lithium. These results indicate that lithium minerals such as spodumene and petalite – as well as rare earth elements like tantalite-columbite – may be present at Haneti. As such, the pair have applied for five new exploration licences covering zones of interest and are developing a work programme to identify any lithium-bearing minerals and assess the extent of any lithium mineralisation.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance