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(Alliance News) - Katoro Gold PLC on Wednesday confirmed drill targets for it 75%-owned Hantei nickel project in Tanzania.
Katoro said the project could host a chonolith nickel sulphide deposit. A chonolith is an igneous rock intrusion of irregular shape.
The remaining 25% of the project is owned by London-listed Power Metal Resources PLC, formerly African Battery Metals. Power Metal can increase its holding in the project to 35% through a GBP25,000 cash payment.
Power Metal also holds a 6.0% interest in Katoro.
"We've been extensively reviewing all previous work at Haneti and everything we have learnt points to the fact that this project could host a chonolith type nickel sulphide deposit," said Katoro Chair Louis Coetzee. "We are therefore very excited to be pushing ahead with preparations for a drilling programme at the two key targets, Mihanza Hill and Mwaka Hill, which we hope will determine the existence of disseminated or massive sulphide mineralisation and define a future larger drilling programme. We look forward to providing updates as we look to advance what we believe to be a very exciting project."
Power Metal Executive Director Paul Johnson added: "The decision to drill the Haneti nickel project, targeting nickel, copper and PGM mineralisation is an acutely significant event for both joint venture partners."
Both companies said the main objective of the 2019 exploration work programme will be to ascertain the existence of disseminated or massive sulphide mineralisation at the identified high priority exploration targets.
Shares in Katoro Gold were up 2.9% in London on Wednesday at 1.08 pence each. Power Metal Resources was trading down 0.6% at 0.55p.