TIDMKAT
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 -63deg and MWDD02 to 224.0m at a
-64deg 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 -64deg 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 Target Datum Easting Northing Azimuth Dip Hole
Hole ID (m) (m) depth
(M)
MWDD01 Mwaka ARC1960_UTM36S 823818 9398759 224deg 64deg 224.81
--------- ---------------- -------- --------- -------- ------ -------
MWDD02 Mwaka ARC1960_UTM36S 823050 9398324 223deg 63deg 245.78
--------- ---------------- -------- --------- -------- ------ -------
MHDD01 Mihanza ARC1960_UTM37S 169035 9399220 254deg 64deg 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 -
30deg) - 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 mostly composed of one or more
of the serpentine group minerals that include antigorite ,
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
. 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 or
contact:
Louis Coetzee 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 Lifa Communications Investor and
Media Relations
Advisor
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