Diamond Drilling at Haneti Nickel PGM Project
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
("Katoro" or "the Company")
7 April 2021
Katoro Gold plc ("Katoro Gold" or the "Company")
Haneti Nickel PGM Project - Decision to Proceed with Diamond Drilling Programme
Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to announce an update regarding a maiden rotary air blast ("RAB") drill programme targeting the discovery of nickel and platinum group metals ("PGM") at the Haneti Nickel PGM Project ("Haneti" or the "Project") in Tanzania.
Katoro Gold holds a 65% ownership interest in Haneti with 35% held by Power Metal Resources plc.
Louis Coetzee Executive Chairman of Katoro Gold PLC said: "We are delighted to report that following receipt of the results from the recently completed RAB drill programme at Haneti, the decision has been made to advance the Haneti Nickel PGM Project to deep diamond drilling.
"Information from the recent shallow drilling results and the discovery of new gossanous nickel-copper-magnetite veining at Mihanza Hill, confirmed the results from previous exploration work done at Haneti, which was the primary objective of the RAB drill programme. The latest results provided the confirmation we wanted to take the next step in our exploration strategy for Haneti and to proceed with deep diamond drilling. With the diamond drill programme, we will assess the potential for possible economic nickel sulphide mineralisation at Haneti.
"We are currently busy with the planning and design of an appropriate diamond drilling programme as well as the selection and engagement of a suitable drilling contractor.
"We look forward to providing further updates shortly."
An inaugural diamond drilling programme is now planned to test for nickel and PGM sulphide mineralisation at depth following the successful completion of the shallow RAB drilling programme at Mihanza Hill and Mwaka Hill and the identification of nickel-copper-magnetite gossanous veins at a new outcrop at Mihanza Hill.
Following the completion of the 50 hole (1,965m), shallow RAB drilling programme at Mihanza Hill and Mwaka Hill, announced 26 January 2021, the assay results have now been received from SGS Laboratories and a decision has been made to progress to a diamond core drilling programme in order to test for nickel sulphide mineralisation at depth.
The objective of the RAB drilling programme was to delimit the extent of ultramafic intrusive geology below nickel enriched laterite and regolith cover, on two approximately 1km long transects orientated across time-domain electromagnetic ("TDEM") geophysics anomalies previously identified at Mihanza Hill and Mwaka Hill.
The deeply weathered nature of the rocks intersected by the shallow RAB drilling meant that no fresh un-altered rock or primary nickel sulphide mineralisation was delineated though the programme has successfully allowed the determination of gneiss-ultramafic serpentinite hangingwall/footwall contacts helping to further constrain the diamond drilling target area.
Importantly, concurrent surface mapping has identified small scale nickel-copper-magnetite gossanous veins at a new outcrop at Mihanza Hill. The geological team consider this discovery as substantiation of the potential for primary nickel rich sulphide mineralisation within the underlying ultramafic body, underpinning the requirement to progress to a deep drilling programme.
Diamond drilling is now planned to a depth of at least 400m in order to intersect the TDEM and magnetic geophysics anomalies, to test for primary sulphide mineralisation and to obtain fresh unaltered rock samples for mineralogical analysis. Further details on the planned diamond drill programme and the starting date will be provided shortly.
For further information please visit www.katorogold.com or contact:
Katoro Gold plc
+44 20 3440 6800
RFC Ambrian Limited
+44 (0) 1483 413 500
SI Capital Ltd
Isabel de Salis
St Brides Partners Ltd
Investor and Media Relations Adviser
TECHNICAL REVIEW STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Noel O'Keeffe B,Sc (Hons) Geology, PGeo), who is a qualified geologist and has more than five years' experience in the type of mineral setting being reviewed. Mr O'Keeffe acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies and is also a director of Kibo Energy PLC who holds a 25.37% beneficial interest in Katoro.
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.