TIDMKAT TIDMPOW
RNS Number : 9698E
Katoro Gold PLC
09 July 2019
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 9 July 2019
Katoro Gold PLC ('Katoro' or the 'Company')
Haneti Project - Lithium Prospectivity and New Licences
Katoro Gold PLC (AIM: KAT), the Tanzanian focused exploration
and development company, is pleased to provide an update in respect
of its 75% owned Haneti Nickel Project ('Haneti' or the 'Project')
in Tanzania.
Summary:
-- As part of regional exploration reconnaissance, the Haneti
exploration team have 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 and
consist of coarse quartz, lepidolite, and red and black
tourmaline;
-- Lepidolite contains significant lithium and its presence may
be indicative of the presence of lithium minerals such as spodumene
and petalite. These pegmatites can also prove prospective for rare
earth elements as well as other exotic minerals such as
tantalite-columbite;
-- There is a clear indication for further exploration work in
this area and Eagle Exploration Ltd, the Tanzanian subsidiary of
Katoro which holds 100 per cent. of Haneti and which the Company
has a 75 per cent. interest in, has applied for five additional
exploration licences in the area covering the zones of interest;
and
-- A further work programme is being developed which may include
a regional desktop study, detailed field mapping and geochemical
analysis, principally to identify lithium bearing minerals
including spodumene and petalite and to assess the extent of any
mineralisation identified.
Louis Coetzee, Executive Chairman of Katoro commented: "The main
thrust of our work to date at Haneti has been exploration for
nickel sulphides, and we will be publishing details of the planned
drill programme in this regard shortly.
Notwithstanding the nickel sulphide focus, work completed to
date has also identified the potential for lithium and rare earth
element mineralisation and we have decided to investigate this
potential immediately, and in parallel to our nickel drill
programme.
Recognising the findings, we have moved to rapidly secure
licence ground to cover the areas of interest and may extend this
licence coverage, should additional zones of interest be
identified.
These are exciting times for Katoro as we move into the initial
fully funded drilling phase for nickel sulphides and now undertake
work to investigate lithium prospectivity."
Background to the Haneti Nickel Project
Katoro has a 75% interest in Haneti, a highly prospective,
high-grade nickel sulphide asset in Tanzania. Development of Haneti
is being advanced in tandem with its joint venture partner, Power
Metal Resources plc (LON:POW) ("Power Metal") (previously called
African Battery Metals plc), which has the remaining 25% interest
in Haneti and a right to acquire a further 10% interest from Katoro
to increase its interest to 35%, through a cash payment of
GBP25,000 to Katoro, until 15 May 2020.
The Company and Power Metal have been undertaking a review and
analysis of all historic work completed on the 5,000 sq. km
polymetallic Project and believe that it could host a chonolith
type nickel sulphide deposit. Previous work undertaken, totalling
approximately US$1.5 million, has identified grades of up to 13.59%
nickel with additional gold, cobalt, platinum values and some
significant lithium anomalies. Additionally, independent work,
undertaken by Western Geophysics Pty, underlined the potential of
Haneti to host a substantial nickel sulphide deposit.
In 2012/13, the Geological Survey of Tanzania ('GST') conducted
a high resolution airborne geophysical survey covering an area of
approximately 12,000 sq. km. The GST survey outlined
mafic-ultramafic zones with strike lengths of 10-20 km (northwest
zone), 30 km (southwest zone) and 80 km (central zone), extending
the footprint of the known nickel sulphide prospective Haneti-Itiso
Ultramafic Complex ('HIUC').
Haneti lies within the ground area covered by the HIUC and,
following the findings above, was subject to an independent
geochemical interpretation, which identified the Mihanza Hill area
as a prime drill target for nickel, copper and PGM mineralisation.
The findings from the geochemical interpretation report and the
in-house review thereon was sent to Perth based geophysical
consultants, Spinifex Geophysics, for detailed processing and
interpretation to better understand the geology of Haneti and to
generate new target areas particularly for nickel, copper and
platinum group metals (PGM) style mineralisation.
A follow up extensive soil sampling programme was then
undertaken, the results of which were announced by Katoro on 20 May
2019. This extended the strike length of previously identified high
priority areas and the findings have been utilised to inform
planning for a proposed drill programme. Furthermore, it also
identified a new, previously unidentified exploration target.
Following further review of the accumulated work undertaken, the
JV partners have agreed to immediately implement a drill programme
at two of the Project's key targets: Mihanza Hill and Mwaka Hill.
At the primary target, Mihanza Hill, a high magnetic anomaly was
modelled using a 3D inversion modelling technique to better
understand how the magnetic signature varied with depth. The
results indicate that there is a considerable 'root' to the Mihanza
Hill ultramafic outcrop, which points to a large volume of rock
that could have positive implications for the differentiation of
nickel sulphide rich magmas and provides a large volume of nickel
prospective target rock at this location.
The main objective of the 2019 exploration work programme will
be to ascertain the existence of disseminated or massive sulphide
mineralisation at the identified high priority exploration targets.
Using a variety of exploration techniques, the programme will seek
to define a future drilling programme. Further information
regarding this programme, including more extensive information on
the drilling methodology and additional geological rationale for
the targets selected for drilling, will be provided in due
course.
**ENDS**
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.katorogold.com or
contact:
Louis Coetzee louisc@katorogold.com Katoro Gold plc Executive Chairman
Richard Tulloch +44 (0) 20 7409 Strand Hanson Nominated Adviser
3494 Limited
Ritchie Balmer
Georgia Langoulant
Ben Tadd +44 (0) 203 7000 SVS Securities Broker
Tom Curran 093
Isabel de Salis +44 (0) 207 236 St Brides Partners Investor and Media
Gaby Jenner 1177 Ltd Relations Adviser
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END
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