Katoro Gold PLC Drilling Commenced at Haneti Nickel Project (0322K)

TIDMKAT

RNS Number : 0322K

Katoro Gold PLC

30 December 2020

Katoro Gold plc (Incorporated in England and Wales )

( Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

   ("Katoro" or  "the   Company") 

30 December 2020

Katoro Gold plc ('Katoro' or the 'Company')

Drilling Commenced at Haneti Nickel Project

Katoro Gold plc (AIM:KAT), the AIM listed gold and nickel exploration and development company, is pleased to provide an update regarding the maiden drill programme targeting the discovery of nickel and platinum group metals ("PGM") at the Haneti Nickel Project ("Haneti") in Tanzania. Katoro holds a 65% interest in Haneti with 35% held by Power Metal Resources plc (LON:POW).

HIGHLIGHTS

-- Maiden drill programme underway at Haneti having successfully mobilised the team and drill rig to site and with the local and regional approvals in place.

-- 2,000 metres of Rotary Air Blast ("RAB") drilling planned over 50 holes to circa 40 metres depth per hole.

-- The RAB drill holes will be drilled on profiles across the three target areas in order to provide enhanced information of the subsurface shape and orientation of the ultramafic rock bodies being targeted and allowing for the optimisation of a planned follow-on diamond drill programme.

   --    Katoro's costs in respect of the programme are fully covered from existing cash resources. 

Louis Coetzee, Chairman of Katoro Gold plc commented: "We are very excited to see the first exploration drill programme at Haneti now underway and look forward to updating shareholders as the work progresses."

FURTHER INFORMATION

Project overview

The Haneti Nickel Project covers an area of approximately 5,000 km(2) in central Tanzania approximately 88 km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, PGMs and gold.

One of the key exploration objectives for the JV partners at Haneti is to delineate the potential for economic nickel mineralisation on the linear dyke-like, Haneti-Itiso Ultramafic Complex ("HIUC"), which sporadically crops out over a strike length of 80 km through the centre of the tenement holding. The HIUC mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite and is being targeted for a Chonolith-Type Nickel exploration model.

RAB Drill Programme

An initial three target areas have been selected for RAB drilling: Milhanza Hill; Mwaka Hill; and Igari Hill. These targets are based on the recommendations of the 2012 AEM survey, the detailed field programme undertaken in 2013, and further supplementary exploration findings.

The planned 2,000 metres RAB drilling programme will consist approximately 50 holes drilled on linear fences across the targets. The programme will seek to verify the existence of near surface nickel sulphide mineralisation at each target whilst increasing the geological understanding such that the orientation and the meterage of a planned follow-up diamond drill programme can be optimised to confirm the scale of any nickel sulphide mineralisation.

The drilling will be conducted by an experienced Tanzanian company in line with international best practice and in accordance with health and safety and COVID-19 precautions.

Historic Nickel Exploration

The Haneti area was first explored in 1931 by a private prospector who collected a nickel--rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous, green--stained veins rich in nickel--silicates and containing several percent nickel.

In the early 1960s, the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt. Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013. Additionally, an airborne electromagnetic ("AEM") geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.

A study commissioned with a consultant expert in ultramafic geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso--Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model, which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.

In 2019, several soil samples collected during the 2013 exploration programme were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic subcrop (see RNS dated 30 January 2019).

**ENDS**

For further information please visit www.katorogold.com or contact:

 
 Louis Coetzee     [e-mail]   Katoro Gold plc        Executive Chairman 
 Bhavesh Patel     [phone]         RFC Ambrian Limited   Nominated Advisor 
  Andrew Thomson 
 Nick Emmerson     [phone]        SI Capital Ltd         Broker 
  Sam Lomanto       500 
 Isabel de Salis   [phone]         St Brides Partners     Investor and Media 
  Beth Melluish     1177                    Ltd                    Relations Adviser 
 

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December 30, 2020 02:00 ET (07:00 GMT)