Power Metal Resources (LSE:POW) said the environmental management plan for its 100%‑owned Tati Gold Project on the Tati Greenstone Belt in Botswana has been approved and an access agreement covering the licence area has been signed, clearing the way for on‑site work including drilling.
Under the share option agreement with Tuscan Holdings Pty dated 19 June 2024, Tuscan will manage and fully fund the planned exploration, evaluation and feasibility activities at no cost to Power Metal, the London‑listed exploration company, the company said.
The initial technical phase will target the geometry and continuity of gold mineralisation through rotary air blast drilling to depths of about 60 metres for a planned total of about 600 metres to produce geological data and representative metallurgical samples.
High‑resolution drone imagery and site visits will support environmental baseline studies, digital terrain modelling and drill‑site preparations, with RAB drilling scheduled to follow those site works.
Subject to encouraging results, Tuscan may apply for permits for small‑scale mining of roughly 50 tonnes per day with the objective of moving toward initial gold production, a plan the company says is supported by a strong gold price environment.
If Tuscan completes a feasibility study and finances construction of processing and mine infrastructure it may exercise an option to acquire 75% of licence PL049/2022, leaving Power Metal with a 25% carried interest and retention of 100% of other Tati licences.
Work is expected to commence in short order, with completion of the initial RAB programme and progression to a feasibility study forming the next milestones under the option agreement.
