Power Metal Resources cautiously upbeat on Haneti drilling

The AIM-traded firm said the programme was completed successfully, with a total of 900.04 metres across three drill holes, as planned.

Core logging and sampling was underway, with samples being prepared for thin section petrographic analysis and laboratory assay testing for nickel, copper, platinum, palladium, cobalt, chromium and gold at SGS Tanzania.

Large intersections of serpentinite and gabbroic rocks were identified in the Mwaka drill holes MWDD01 and MWDD02, with indications of peridotitic sequences.

The latter would be subject to confirmation through the thin section petrographic analysis.

Mihanza hole MHDD01, meanwhile, intersected massive serpentinite from surface, and serpentinised meta-gabbroic rocks at depth.

“This drill programme was safely executed and delivered on schedule and within budget,” said chief executive officer Paul Johnson.

“Now that the physical drilling has been completed we move into the core logging, sampling and testing phase, and clearly there are various elements to this.

“We are cautious with early interpretations until the core logging and testing is complete.”

Johnson said the company had seen thick sections of ultramafic rocks, and postulated that the anticipated geological model had been demonstrated from the core recovered.

“We are encouraged by the technical and geological success so far and look forward to providing further updates as and when they become available.”

At 1152 GMT, shares in Power Metal Resources were up 2.69% at 1.41p.