Paul Johnson, Executive Director of Power Metal Resources plc commented: “Our original interest in Haneti was principally with regard to the large scale nickel sulphide targets and the upcoming drill programme that 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.
I look forward to reporting further in respect of these additional exploration activities being undertaken at Haneti.”
First Published Jun 26
Haneti Project – Lithium Prospectivity and New Licence applications
Power Metal Resources plc (LON:POW) the AIM listed African focused metal exploration and development company is pleased to announce an update in respect of the Haneti Project in Tanzania (“Haneti” or the “Project”).
POW has established a joint venture (“JV”) with Katoro Gold Plc (“Katoro” LON:KAT) in respect of Haneti, (the “Haneti JV”). POW has a 25% interest in the Haneti JV with a right to increase to a 35% interest through a cash payment of £25,000 to Katoro, until 15 May 2020. Katoro has a 75% interest in the Haneti JV. POW will contribute 25% to the cost of Haneti Project maintenance and exploration or will dilute in accordance with standard industry provisions.
POW also holds 10,000,000 shares in Katoro representing 5.95% of Katoro’s issued share capital.
· 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% of Haneti and in which POW has a 25% interest in, has applied for five additional exploration licences in the area covering the zones of interest currently identified; and
· A further work programme is being developed which may include a regional desktop study, detailed field mapping and geochemical analysis, principally to identify any lithium bearing minerals including spodumene and petalite and to assess the extent of any mineralisation identified.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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