Drilling is ready to begin at the highly-prospective Haneti polymetal project in Tanzania owned by London-listed miners Katoro Gold (LSE:KAT) and Power Metal Resources (LSE:POW).
The JV has signed a drill contract with Amazon Drilling Ltd and the rig is ready for deployment, it said on Thursday, with the cost for both sides covered by existing cash.
Katoro and Power Metal believe that they have a world-class nickel deposit on their hands in Tanzania.
The principal target zone is an 80km-long ultramafic belt, the exact type of subsurface structure where PGMs and nickel sulphide worldwide are generally found. In Haneti, the key goal is for the JV is to discover the potential for economic nickel mineralisation on the linear dyke-like complex which crops out throughout the middle of the tenement holding.
This first 2,000m drill programme seeks to verify near-surface nickel sulphide mineralisation across three target areas.
Previous exploration work has identified stunning grades from surface sampling up to 13.6% nickel and 2.33g/t platinum and palladium.
The maiden drill project will comprise 50 holes at depths of around 40m. This rotary air blast drilling should provide engineers with enhanced data about the subsurface shape and orientation of the metals within the massive system.
A 2015 study with a consultant expert in ultramafic geochemistry identified a nickel, copper, platinum, and palladium anomaly at Mihanza Hill as a drill ready target.
Once the new data from the drill programme has been analysed, engineers will design a planned follow-on precision diamond drilling workset. Power Metal CEO Paul Johnson said the drill mobilisation for this maiden programme “has been a long-anticipated event”, adding that he was “extremely pleased” to begin.
He added: “Power Metal are delighted to have significant exposure to the Haneti project which is now our third where drill programmes are underway.”
Katoro Gold (LSE:KAT) acquired the rights to the massive 5,000km2 Haneti system from energy firm Kibo Mining in June 2018. It owns 65% of the project while Power Metal has the other 35%.
Power Metal noted Haneti’s massive nickel sulphide potential in a May RNS, adding that Katoro had received further approaches by other companies to take an earn-in or joint venture on the project throughout 2020.
Author: Daniel Flynn
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