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(Alliance News) - Katoro Gold PLC's shares jumped on Tuesday following an announcement that a diamond drilling programme has commenced at its Haneti nickel joint venture project in Tanzania.
Shares in Katoro were up 9.1% at 0.60 pence on Tuesday morning in London.
The Haneti project is currently held under a joint venture with Katoro, which holds a 65% interest, and Power Metal Resources PLC, which holds the remaining 35% interest.
Katoro had originally acquired the project in June 2018 through its acquisition of Kibo Mining PLC which held a 100% interest in the project.
The planned 1,000 metre drill programme consists of three deep diamond core targeting magmatic sulphide hosted nickel, copper and platinum group metals. The work will be the first diamond drilling conducted by the joint venture within the Haneti project area.
The London-based gold and nickel exploration company with projects in Tanzania and South Africa said it is expected that mobilisation will be completed around January 17 and drilling to commence around January 20.
Power Metal, Katoro's partner in the project, added in a separate statement that, in advance of the drilling programme, the Haneti project licences have successfully been renewed for an additional 7 years.
Power Metal is a London-based metal discovery company with projects in Africa, Australia and North America. Shares in Power Metal were down 0.7% at 1.61p on Tuesday afternoon in London.
Katoro Executive Chair Louis Coetzee said: "We are very pleased to be starting off the new year on a good note for the Haneti project. Commencing with the next phase of the diamond drill programme marks a milestone in our exploration strategy. Subject to the results from the diamond programme, we look forward to unlocking even more positive developments."
Chief Executive of Power Metal Paul Johnson commented: "The preparatory work leading up to this campaign has been extensive, though ultimately, it is deep diamond drilling that is now needed in order to broaden our understanding of the geological environments and to unlock the potential for a commercial discovery."
By Heather Rydings; heatherrydings@alliancenews.com
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