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(Alliance News) - Katoro Gold PLC and Power Metal Resources PLC on Tuesday said a first drilling programme at the Haneti nickel and platinum group metals project has concluded.
In addition, Power Metal said it has struck a deal which could see it take sole ownership of four gold assets in Canada.
Katoro holds a 65% interest in the Haneti project in Tanzania, with Power Metal owning the remaining 35%.
Rotary air blast drilling was completed at the Mihanza Hill and Mwaka Hill sections of the project, the duo explained.
Power Metal Chief Executive Officer Paul Johnson said the "successful completion" represents a promising step forward for the Haneti asset.
Four rock samples have been sent to assay laboratory SGS Tanzania, the companies added.
Katoro Gold Chair Louis Coetzee said: "We are very pleased with the successful completion of the first drill programme at Haneti, marking a significant milestone in the ongoing exploration programme at the project. We have a very clear exploration strategy for Haneti and, subject to the outcome of results from the maiden drill programme, are ready to proceed with the next phase."
Also on Tuesday, Power Metal said it has signed an option agreement to buy four separate gold exploration assets at the Hemlo and Schreiber areas in Canada.
"The four option properties are located within 100 kilometres west or southwest of the company's new Hemlo North gold project)," Power Metal explained.
The properties include the McKellar, Enable, Magical and Coco East assets.
Power Metal noted a non-refundable CAD10,000, about GBP5,741, option fee will be payable. It may part with CAD260,000 should it acquire all the assets, with half that consideration payable in Power Metal shares.
Power Metal shares were down 2.9% at 2.70 pence each in London on Tuesday afternoon. Katoro Gold was up 8.4% at 2.38p.
By Eric Cunha; ericcunha@alliancenews.com
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