Power Metal Resources (LON:POW) revealed Wednesday that, on the back of a maiden rotary air blast drill programme at Haneti, the project will move to the next step of deep diamond drilling.
The company has 35% ownership interest in Haneti, a platinum group metals (“PGM”) project in Tanzania, while Katoro Gold (LON:KAT) holds the other 65%.
The now complete 1,965 metre, 50-hole, shallow rotary air blast (“RAB”) programme took place at the Mihanza Hill and Mwaka Hill targets. Results have now been received from SGS Laboratories.
On the basis of this, Power Metal and Katoro have opted for a maiden diamond drilling programme testing for nickel and PGM sulphide mineralisation at depth. This, too, will take place at the Mihanza Hill and Mwaka Hill targets.
Nickel is used in lithium-ion batteries, with demand set to grow along with the electronic vehicle (“EV”) market. It is also used to make stainless steel. PGMs could also end up in the EV space, while the PGM outlook overall is one of limited supply amid growing demand.
The goal of the RAB drilling was to determine the extent of “ultramafic intrusive geology” found beneath the “nickel enriched laterite and regolith cover” for two transects of around 1 kilometre in length at the targets. The transects are orientated across time-domain electromagnetic ("TDEM") geophysics anomalies already identified.
Because the shallow RAB drilling took place on deeply weathered rocks, it was not able to delineate “fresh un-altered rock or primary nickel sulphide mineralisation” but did assist in further constraining the target area for diamond drilling.
Notably, the surface mapping that took place at the time found “small scale nickel-copper-magnetite gossanous veins” located within a new Mihanza Hill outcrop. According to the geological team, this is evidence of potential primary nickel rich sulphide mineralisation in the underlying ultramafic body.
The diamond drilling is intended to reach a depth of 400 metres, at minimum, so as to intersect the TDEM and magnetic geophysics anomalies as well as testing for primary sulphide mineralisation. This drilling will also be used to gather fresh unaltered rock samples to be analysed.
As chief executive Paul Johnson explained, the additional geological information from the shallow drilling, as well as the “discovery of new gossanous nickel-copper-magnetite veining at Mihanza Hill”, made a clear case for deep diamond drilling at Haneti.
Johnson noted that this drilling will help determine the possibility of “economic nickel sulphide mineralisation” at the project.
Power Metal said more details of the programme, including a start date, will follow soon.
Author: Anna Farley
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