Haneti Project, Tanzania - Exploration Update
31/05/2022 15:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220531:nRSe4367Na&default-theme=true
RNS Number : 4367N Katoro Gold PLC 31 May 2022
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 31 May 2022
Katoro Gold PLC ('Katoro' or the 'Company')
Haneti Project, Tanzania - Exploration Update
Katoro Gold PLC (AIM: KAT), the gold and nickel exploration and development
company, announces results from the Company's inaugural diamond drilling
programme on the nickel-copper-cobalt-platinum group element Haneti Project
("Haneti" or the "Project") and the Babayu Lithium Prospect ("Babayu"), both
located in central Tanzania.
The Haneti Project is held in Joint Venture ("JV"), with Katoro holding a 65%
interest and Power Metals Resources Plc holding a 35% Project interest.
In tandem with the early 2022 diamond drilling campaign at Haneti, rock
samples were taken at the Babayu Lithium Prospect located approximately 40km
southwest of Haneti, and to be included in the same project JV. Both work
programmes were completed by in-country geological teams of the operator
Katoro Gold. The Haneti drilling and Babayu prospecting results were received
around the same time and are both presented herein.
Louis Coetzee, Executive Chairman of Katoro Gold plc commented:
"The Haneti drill programme has provided considerable geological information
to enable us to refine the geological modelling and vector in on target areas
for next stage work. Haneti is a Project of potentially significant size and
scale. First host rock drilling has confirmed the presence of nickel and now
we will take that information, review and determine next steps as quickly as
possible.
Completion of this first Haneti programme enables us to re-engage with the
potential project partners to discuss the findings in further detail,
particularly as access to drill core for their technical due diligence was an
important element.
Confirmation of significant lithium at the Babayu Prospect, is a fantastic
outcome from the work undertaken and is very significant given current global
lithium demand. We intend to pursue this lithium potential by inclusion into
our exploration planning and actively planning and executing appropriate work
programmes. "
PROGRAMME HIGHLIGHTS
Haneti Nickel
· All drill holes intersected sequences of altered ultramafic and mafic
rocks, representing the first ever fresh rock drill core samples extracted
from the Project.
· Integration of thin section petrographic analyses with bulk rock
geochemical results across multiple intersected lithological units suggest
that the platinum-group element ("PGE") potential at Haneti is limited to
serpentinite units, and that nickel and copper mineralisation should
preferentially be targeted within the intrusive gabbro units.
· Whilst the drilling results showed anomalous results for Nickel (Ni),
copper (Cu), gold (Au) and PGE that are subject to further interpretation,
economically significant intersections of these metals were not encountered in
the drilling.
Babayu Lithium
· Rock sampling results from the Babayu Lithium Prospect highlight
significant lithium and tantalum potential with lithium-caesium-tantalum (Ta)
("LCT") pegmatite mineralisation outlined over a 600m strike-length. The chip
sample results (up to >10,000ppm Li and 2,680ppm Ta) and strike length
combined with the perceived shallow dip of the main pegmatite body show the
potential for a significant near-surface mineralised body that warrants
further assessment and evaluation.
· Licence applications have been made in respect of the lithium
prospective areas and the JV is currently implementing a lithium consolidation
strategy including existing lithium applications and reviewing potential
partnerships with local licence holders.
ADDITIONAL HANETI DRILL PROGRAMME INFORMATION
Historical geophysical and geochemical sampling programmes completed prior to
the 2022 drilling campaign were successful in identifying at least three
high-priority drilling targets at Haneti. As no fresh rock samples had ever
been obtained from the Project, the decision was made to drill these targets.
The main programme goal was to extract fresh rocks to obtain a better
understanding of the subsurface geology as well as to intersect Ni-Cu sulphide
mineralisation.
The 2022 diamond core drilling programme was completed successfully with a
total of 900m drilled. This included three drill holes which were targeting
previously outlined mafic-ultramafic Ni- Cu-PGE sulphide targets at the
Mihanza and Mwaka Hill prospects (on PL no. 11797/2022). The three holes
completed are outlined and summarised below:
· Mwaka Hill Prospect: Hole MWDD01 was drilled to 245.8m down hole
depth at an inclination of -63° and MWDD02 to 224.0m at a -64° inclination.
The two holes intersected significant thicknesses of altered ultramafic rocks
(serpentinite) and mafic rocks (gabbro). Hole MWDD01 gave the highest Ni
intersection of 2.00 m @ 0.45% Ni from 81.5m downhole. In MWDD02 two wider
intersections were encountered with 4.0m @ 0.38% Ni from 151.4m and 4.0m @
0.35% Ni from 159.4m. All elevated Ni results were found exclusively within
serpentinite.
· Mihanza Hill Prospect: Hole MHDD01 at the was drilled to 430.2m at a
-64° inclination. The hole intersected similar rock types as at the Mwaka
Hill prospect but contained no significant Ni intersections but did contain
anomalous PGE, Au and Cu results including: 2.0m of 0.08g/t platinum (Pt) +
palladium (Pd) from 241.3m; 2.0m of 0.21g/t Au from 392.4m; and 2.0m @ 0.11 %
Cu from 236.2m.
Drill Hole ID Target Datum Easting (m) Northing (m) Azimuth Dip Hole depth (M)
MWDD01 Mwaka ARC1960_UTM36S 823818 9398759 224° 64° 224.81
MWDD02 Mwaka ARC1960_UTM36S 823050 9398324 223° 63° 245.78
MHDD01 Mihanza ARC1960_UTM37S 169035 9399220 254° 64° 430.24
Haneti 2022 Drill Programme Collar Table
The drilling field work phase was followed by laboratory analyses, performed
at SGS's laboratory located in Mwanza, Tanzania with samples also then
transferred to SGS South Africa to mitigate certain operational difficulties
at SGS Tanzania. This re-routing of samples and the additional work required
in respect of the lithium prospectivity added some additional time to the
return of completed findings to the operational team.
Following receipt and analysis of the result - Haneti personnel prepared a
comprehensive report, a summary of which is included below:
Thin Section Petrography, Bulk Rock Geochemistry and Lithological
Associations:
An analysis of the thin section petrography, bulk rock geochemistry and
geochemical and lithological associations of the drill core was performed by
independent geologist Dr Martin Klaussen of the University of Stellenbosch.
· All three drill holes intersected one or more serpentinised
ultramafic units of uncertain origin and a gabbroic intrusion.
· Drill holes MWDD01 and MWDD02 intersected the same stratigraphic
sequence. These two drill holes orthogonally tested approximately 420m of the
litho-structural inventory of the Mwaka Hill prospect.
· Drill hole MHDD01 intersected massive serpentinites from the start to
the end of hole, with the serpentinite being texturally and chemically like
the serpentinites encountered in MWDD01 and MWDD02.
· No disseminated or massive magmatic sulphide mineralisation (e.g.
visible pyrrhotite, pentlandite, chalcopyrite, bornite, etc.) was encountered
visually or geochemically in any of the three drill holes.
Babayu Lithium Prospectivity:
A reconnaissance site visit was completed in order to investigate historical
reports of potentially significant pegmatite-hosted lithium mineralisation
located near to the rural settlement of Babayu, Dodoma District. One pegmatite
at the Babayu Prospect was investigated during this site visit. Some general
observations were made during this visit.
The main pegmatite referred to above was traced for a strike length of
approximately 600m. Along its strike length outcrop is sporadic and in no
instances could its hanging wall and footwall contacts be ascertained with
high confidence; however, its true width likely ranges between 1m - >7m,
which is considered to be potentially significant. The pegmatite strikes
west-northwest to east-southeast and is shallowly northeast-southwest dipping
(20 - 30°) - it is gently folded and appears to be slightly sheared.
Five chip samples were collected over the main pegmatite to confirm lithium
mineralisation. Based on the analytical results several relevant observations
were made:
· Strong lithium mineralisation is present, most likely in the form of
lepidolite/spodumene mineralisation, with two of the five rock samples
returning >10,000ppm Li.
· The tantalum (Ta) values in two samples (2,608ppm and 1,354ppm) are
exceptionally high, considering that a value of around 250ppm would be of
economic interest.
· The Ta:Nb (niobium) ratio is favourable with Ta being much more
abundant, representing the more valuable member of the two.
Based on the results, it is suggested that the Babayu lithium prospect should
be further followed up on and the consistency of the high concentrations of
tantalum and lithium should be evaluated further.
Haneti Drilling Programme Conclusions:
· The Haneti Project is associated with very-high, regional, background
Ni values that are associated with various mafic-ultramafic lithologies. Most
of the identified historical Ni-in-soil anomalies at Haneti, including those
identified over the Mwaka and Mihanza Hill prospects, are likely being related
to sub-economic Ni-laterite that developed over nickel-olivine rich
serpentinites.
· The lack of distinct Cu and PGE anomalism in association with nickel
suggests that high nickel values are primarily associated with the weathering
of nickel silicates (particularly altered olivine). Therefore, any future
target should be defined not only based on a discrete nickel anomalism but
also by elevated Cu, PGE's, and Cr values.
· Drilling confirmed that the serpentinites are highly magnet, which
could have influenced results obtained from historical electromagnetic and
magnetic geophysics surveys.
· The detailed work done by Dr Martin Klaussen of the University of
Stellenbosch, suggests that the serpentinites are likely of ophiolitic origin,
whilst the gabbros represent a younger, possibly layered mafic intrusion. In
such a geological setting, the PGE potential is limited to the serpentinites,
and Ni-Cu mineralisation should be preferentially targeted within the
intrusive gabbros and possibly associated structures.
· The gabbros might be structurally controlled, possibly of pan-African
age, which can be a positive aspect regarding associated Ni-Cu mineralisation.
Next Steps
Haneti Nickel
A desktop review of all historical exploration data is being undertaken. The
review will take into account the knowledge gained from the 2022 Haneti
diamond drilling campaign (the first ever completed on the Project). The
results are intended to further improve and refine targeting for future
exploration programmes on the Project.
Just prior to Covid-19 restrictions a number of major and mid-tier companies
expressed an interest in Haneti and a key requirement of their due diligence
work was access to diamond drill core for analysis. With that drill core now
in hand the JV will be engaging again with potential project partners.
Babayu Lithium
Additional liaison with the Tanzanian government regarding the lithium licence
applications within the broader Babayu and other related areas. Further
regional desktop studies focusing on the lithium potential of the broader
Dodoma area are to be conducted with the aim of identifying further
prospective target areas for staking and other potential opportunities for
further investment.
Qualified Persons Review
The technical information in this announcement has been read and approved by
Albertus Loubser Pepler, a qualified geologist registered with the South
African Council for Natural Scientific Professions (SACNASP), BSc (Hons)
Gelogy and BSc (Hons) Mineral Economics, with over 30 years' experience in the
field of mineral exploration, an advisor to the Company and a Qualified Person
within the meaning of NI 43-101, JORC (2012) and SAMREC.
GLOSSARY
Serpentinite: A metamorphic rock
(https://www.sciencedirect.com/topics/earth-and-planetary-sciences/metamorphic-rock)
mostly composed of one or more of the serpentine
(https://www.sciencedirect.com/topics/earth-and-planetary-sciences/serpentine)
group minerals that include antigorite
(https://www.sciencedirect.com/topics/earth-and-planetary-sciences/antigorite)
, lizardite
(https://www.sciencedirect.com/topics/earth-and-planetary-sciences/lizardite)
, and chrysotile. They are typically fascinating shades of green and are
usually layered and banded.
Gabbro: A coarse-grained, dark-coloured, intrusive igneous rock
(https://geology.com/rocks/igneous-rocks.shtml) . It is usually black or dark
green in colour and composed mainly of the minerals plagioclase and augite.
Ophiolite: Ophiolites are suites of temporally and spatially associated
ultramafic, mafic, and felsic rocks that are interpreted to be remnants of
ancient oceanic crust and upper mantle.
This announcement contains inside information as stipulated under the Market
Abuse Regulations (EU) no. 596/2014.
**ENDS**
For further information please visit www.katorogold.com
(http://www.katorogold.com) or contact:
Louis Coetzee louisc@katorogold.com (mailto:louisc@katorogold.com) Katoro Gold plc Executive Chairman
Bhavesh Patel +44 20 3440 6800 RFC Ambrian Limited Nominated Adviser
Andrew Thomson
Nick Emmerson +44 (0) 1483 413 500 SI Capital Ltd Broker
Sam Lomanto
Sewela Makgolane sewela@lifacommunications.com (mailto:sewela@lifacommunications.com) Lifa Communications Investor and Media Relations Advisor
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END RESABMJTMTBJBTT