REG - Power Metal - Haneti Project, Tanzania – Exploration Update

Power Metal ResourcesAnnouncement

31/05/2022 15:00

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RNS Number : 4357N  Power Metal Resources PLC  31 May 2022

31 May 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Haneti Project, Tanzania - Exploration Update

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
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 new Babayu Lithium Prospect ("Babayu"), both located in
central Tanzania.

The Haneti Project is held in Joint Venture ("JV") with Power Metal holding a
35% Project interest and JV partner and London listed Katoro Gold (LON:KAT)
holding a 65% interest.

In tandem with the early 2022 diamond drilling campaign at Haneti, a
prospecting and rock sampling programme was completed at the Babayu Lithium
Prospect located approximately 40km southwest of Haneti and included in the
same project JV. Both work programmes were completed by in-country geological
consulting teams managed by the operator Katoro Gold. The Haneti drilling and
Babayu prospecting results were received around the same time and are both
presented herein.

Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented:

"The Joint Venture has now completed its first diamond drill programme at
Haneti, a district scale exploration opportunity in Tanzania.

Drilling has confirmed the presence of nickel albeit not as yet in
economically significant intersections.  However with the information from
the programme we can now undertake more advanced targeting for next stage
exploration. We are targeting the discovery of economic nickel with the work
programme going forward.

The completion of this programme also enables the JV to re-engage with
potential project partners to discuss the findings and next steps in further
detail.

The work undertaken was extended to include an assessment of lithium
prospectivity which was perhaps less of a focus in the past.  The results of
this work have confirmed significant lithium potential and the JV is now
implementing a lithium consolidation strategy to build our interests in this
area.

At this important time in the advancement of Haneti, Power Metal is working
with our JV partners Katoro Gold to undertake expedited work programmes and
move the Haneti project forward."

PROGRAMME HIGHLIGHTS

Haneti Nickel

·    All drill holes intersected significant 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 900 m 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% 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 assay results 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 by the Company 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, 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 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 area. 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.

 

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.

 

COMPETENT PERSON STATEMENT

 

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a
qualified geologist and acts as the Competent Person under the AIM Rules -
Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal
consultant working for Mining Analyst Consulting Ltd which has been retained
by Power Metal Resources PLC to provide technical support.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/)  or contact:

 Power Metal Resources plc
 Paul Johnson (Chief Executive Officer)                                          +44 (0) 7766 465 617

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Charlie Bouverat                                                    +44 (0) 20 3470 0470

 SI Capital Limited (Joint Broker)
 Nick Emerson                                                                    +44 (0) 1483 413 500

 First Equity Limited (Joint Broker)
 David Cockbill/Jason Robertson                                                  +44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration
company which finances and manages global resource projects and is seeking
large scale metal discoveries.

 

The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base and strategic
metal exploration in North America, Africa and Australia.

 

Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.

 

Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.

 

Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie distributions of assets.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 

 Project                Location   POW %            Work Completed or Underway                                                    Results Awaited

 Alamo Gold Project     USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                      Field and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                    Interpretation results from all Properties complete. Next steps upcoming.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential          Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 Kalahari Copper Belt   Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling.
                                                    exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                    licence areas
 Molopo Farms           Botswana   53%#             Review of recent exploration findings.                                        Determine next exploration steps and action plan.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme undertaken.                                           Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  82.78%           Wallal passive seismic and 2D seismic processing work programme completed.    Findings from multiple work programmes including final approvals and

                                                                             preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills &
                                                    Braeside West projects.

 Selta Project          Australia  82.78%           Field reconnaissance work complete, which included mapping and sampling.      Finalising data review from field programmes.

# subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

 

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