Power Metal Resources (LSE:POW) rose 1.8p on Tuesday after announcing signs of lithium prospectivity at its part-owned Haneti project in Tanzania. The firm, which owns a 25pc position in Haneti alongside Katoro Gold (LSE:KAT), said regional exploration reconnaissance at the identified several pegmatite outcrops included within two abandoned artisanal pits.

The pegmatites, appear to intrude along the sheared contact between granite gneisses and serpentinised ultramafic rocks, consist of corase quartz, lepidolite, and red and black tourmaline. Critically, Lepidolite contains significant amounts of lithium and may indicate the presence of useful lithium minerals like spodumene and petalite. Meanwhile, Power Metal said the pegmatites can also prove prospective for rare earth elements and other saleable minerals like tantalite-columbite.

Further work will be completed in the area following these early signs of prospectivity, with Katoro already applying for five additional licences in the areas coverin the zones of interest. Meanwhile, Power Metal and Katoro are constructing a work programme that may include a regional desktop study, detailed field mapping and geochemical analysis. The aim of this work will be to identify any lithium-bearing minerals and the extent of any mineralisation identified.

Paul Johnson, executive director at Power Metal, said he was excited by the news as the firm’s original interest in Haneti had stemmed from its large-scale nickel sulphide targets. An upcoming drill programme will be undertaken to test those targets.

‘Having lithium, and potentially rare earth element, prospectivity at Haneti is also very interesting and adds to the excitement and potential of the Haneti Project for the project partners; and shareholders of both POW and Katoro alike,’ he added. ‘I look forward to reporting further in respect of these additional exploration activities being undertaken at Haneti.’

Power Metal established a joint venture with Katoro over Haneti earlier this year, and the former has the option to increase its position in the project to 35pc by paying the latter £25,000 in cash by 15 May 2020. The asset sits alongside Power Metal’s broader portfolio of projects centred around the key metals used in power generation, transmission, storage, and utilisation. This includes assets in the DRC, Cameroon, Cote d’Ivoire, and Botswana.

To read our recent report on Power Metal’s interests in Botswana, including exclusive quotes from Johnson, please click here.

Author: Daniel Flynn

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