(Alliance News) - Katoro Gold PLC and Power Metal Resources PLC announced on Tuesday, in separate statements, that a diamond drilling programme has commenced at their Haneti nickel project in Tanzania.
Shares in Katoro were up 12% at 0.62 pence on Tuesday morning in London. Shares in Power Metal were up 1.4% at 1.65p.
The Haneti project is currently held under a joint venture with Katoro, which holds a 65% interest, and Power Metal, which holds the remaining 35% interest.
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.
Katoro, a 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, a London-based metal discovery company with projects in Africa, Australia and North America, added that, in advance of the drilling programme, the Haneti project licences have successfully been renewed for an additional 7 years.
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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Katoro Gold (KAT)
Power Metal (POW)