Power Metal Resources plc has signed an option agreement, with a down payment on drilling, to acquire a 100% interest in two gold-nickel prospecting licences in the Tati Greenstone Belt (TGB), northeast Botswana.
Following a 60-day period of due diligence, Power Metal may exercise the option through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Ltd (Power Metal Botswana).
LICENCES
PL127/2019 is located near the southern extent of the north-northwest striking TGB, roughly 40km southwest of Francistown, and less than 7km from the Mupane underground gold mine.
The licence covers 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation.
Power Metal said that several untested kilometre-scale arsenic- and gold-in-soil anomalies extended onto PL127/2019 from the northeast and southeast.
The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane deposits rich in nickel-copper-platinum group metals.
These are located along the TGB’s periphery, less than 7km from the licence.
PL126/2019 is near the northern extent of the TGB, less than 10km southeast of Francistown and adjacent to the Golden Eagle deposit.
The licence covers 35km2 and is prospective for orogenic gold mineralisation.
PL126/2019 hosts several untested arsenic and gold in-soil anomalies as well as a large historic mine dump which has received little known follow up or modern exploration.
Chief executive Paul Johnson said that Power Metal Botswana had been recently formed to provide a holding company for new acquisitions in Botswana.
“Subject to due diligence, this acquisition would give the company exposure to a new strategic project in the heart of the Tati Greenstone Belt, an underexplored area which we believe holds considerable potential for new gold and nickel discoveries.”
He added that the move underlined Power Metal’s commitment to expanding its operational interests in Botswana, which he described as a “first class destination for responsible exploration companies”.
“Uniquely, the transaction incorporates an option fee that is convertible into a down payment against project drilling in Botswana.”
The vendor is Vittal Commodities Pty Ltd (VC), a company registered and incorporated in Botswana, 100% owned by Equity Drilling Ltd which is registered and incorporated in Guernsey.
TATI GREENSTONE BELT
In 1867, a gold rush in Tati led to the establishment of Francistown and more than 70 reported small scale gold mining operations.
The TGB is adjacent to the Zimbabwe border in north-eastern Botswana, and has a total strike length of 65km and up to 20km in width.
It hosts a large number of orogenic-style gold deposits and several intrusive magmatic nickel-copper-platinum group elements (Ni-Cu-PGE)-rich sulphide deposits.
The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer.
Power Metal said the region was underexplored by modern standards and systematic exploration, focusing on areas with sand cover and geophysics targeting greater depths, were likely to yield further gold and nickel discoveries.