Power Metal Resources PLC (AIM: POW) has commenced on-site operations at its 100%-owned Tati Gold Project in Botswana, marking the start of a new phase of exploration aimed at assessing the potential for small-scale gold production at Cherished Hope.
Work follows approval of the project’s Environmental Management Plan and completion of an access agreement covering the project area. Site investigations and drill preparations are now underway ahead of the main drilling campaign.
The initial programme will use Rotary Air Blast drilling to test mineralisation below the base of oxidation, helping to remove the potential influence of supergene enrichment on assay results and provide a clearer indication of the underlying gold mineralisation.
Drilling will subsequently move down-dip to investigate the geometry and continuity of the mineralised body, before extending along strike to determine its lateral extent.
Results will feed into a desktop feasibility study examining the potential for small-scale mining at Cherished Hope. If the results support development, applications could then be submitted for the necessary mining approvals, with the longer-term objective of moving towards initial gold production.
High-resolution drone surveys will also be undertaken to support environmental baseline work, digital terrain modelling and preliminary mine infrastructure planning.
Importantly for Power Metal shareholders, Tuscan Holdings will manage and fully fund the exploration, evaluation and feasibility programme at no cost to Power Metal under the companies’ existing option agreement.
Following successful completion of the feasibility study, and subject to Tuscan funding construction of the processing plant and associated mine infrastructure, Tuscan can exercise an option to acquire 75% of licence PL049/2022. Power Metal would retain a 25% interest carried free to production, while continuing to own 100% of the other licences within the wider Tati Gold Project.
Chief Executive Sean Wade said the programme would provide further information on the scale and continuity of the mineralisation and help assess the potential for mining and gold production, with the current strong gold-price environment strengthening the project’s economic rationale.
