Power Metal Resources Secures Environmental Approval and Prepares for Drilling at Tati Gold Project in Botswana
AIM-listed Power Metal Resources, together with its option partner Tuscan Holding and its in-country operations team, has completed critical preparatory work for the next phase of activity at the company’s 100%-owned Tati Gold Project. The project is located on the highly prospective Tati Greenstone Belt near Francistown, Botswana.
The progress follows the share option agreement entered into with Tuscan Holding on June 19, 2024, under which Tuscan is advancing the project through a structured, fully funded work programme.
A key milestone has now been achieved with the formal approval of the Environmental Management Plan (EMP) by the relevant Botswana government authorities. This approval removes a major permitting hurdle and allows on-site activities, including drilling, to move forward.
While negotiations around the access agreement covering the project area—particularly the Cherished Hope prospect—took longer than initially expected, discussions are now well advanced and nearing finalisation.
Power Metal notes that execution of the agreement is anticipated shortly, which will provide access to the licence area and support the planned exploration and evaluation programme.
The company highlights that the current strong gold price environment continues to materially support the advancement of the Tati project. In particular, it enhances the potential for small-scale mining at Cherished Hope, reinforcing the economic rationale for continued investment and evaluation by Tuscan.
With the EMP approval secured and the access agreement close to completion, the next phase of work is expected to commence. This will include a programme of rotary air blast (RAB) drilling designed to define the geometry and continuity of gold mineralisation at Cherished Hope.
In line with the option agreement, Tuscan will manage and fully fund the planned work programme. Site visits are expected to begin in the coming weeks to progress drill site investigations and preparations, with drilling scheduled to commence after the end of the current rainy season, anticipated around March or April.
During the option period, Tuscan will fund and manage all exploration, evaluation and feasibility activities at no cost to Power Metal, including the preparation of a feasibility study.
Subject to the successful completion of that study, and Tuscan financing the construction and development of a processing plant and associated mine infrastructure, Tuscan may exercise its option to acquire a 75% interest in the licence. Power Metal would retain a 25% interest, free carried to production.
Power Metal will maintain 100% ownership of all other Tati licences. Its retained interest in licence PL049/2022 is intended to provide continued exposure to potential future cash flows and dividend distributions from any future gold production at the project.
