Update re Gold Projects
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
("Katoro" or "the Company")
Dated: 29 July 2019
Katoro Gold PLC ('Katoro' or the 'Company')
Update re Gold Projects
Katoro Gold PLC (AIM: KAT), the Tanzanian focused exploration and development company, is pleased to provide an update in respect of the Company's portfolio of two gold projects in the Lake Victoria Goldfields, Tanzania.
In addition to the Company's Haneti nickel project in Tanzania, Kataro holds a 100% interest in the Imweru gold project ("Imweru") and the Lubando gold project ("Lubando") in the Lake Victoria Goldfields of northern Tanzania (together the "Projects"). The Projects have a combined JORC compliant gold resource of 754,980 ounces of gold (the "Resource").
· An internal review completed by the Company over recent months has confirmed the exploration upside potential, across both the Imweru and Lubando gold projects;
· The Company has received expressions of interest with regard to the acquisition or joint venture of the Projects, and although to date no suitable agreement has been reached, there is a clear appreciation of the inherent value of the Projects;
· Given the strengthening of the current gold price of approximately US$1,400, and the interest being shown in the Projects, the Company has decided to investigate the scope and cost for further exploration work programmes at Imweru and Lubando that could, if successfully executed, increase the Recourse to an initial one million ounce resource target;
· The Company believes the best opportunity to create near term value is to build the Projects' resource inventory, with an initial target of one million ounces, which represents a modest 32% increase in the existing Resource;
· The Imweru gold project is more advanced and the initial focus will be to identify the most expeditious, low-cost route to adding ounces to the existing Resource, notably to quantify gold in extensions to mineralisation along strike and at depth;
- To date, only approximately 30% of the priority 1 exploration ground at Imweru has been fully explored;
· Internal studies prepared by Kibo Energy PLC (former owner of the Projects), inclusive of a concept study, (Imweru Gold Project Definitive Mining Feasibility Study Stage 1, Phase 1: Concept Study dated December 2014) estimated Imweru resource expansion potential at between 40 and 80%;
· The Imweru prefeasibility study ("PFS") can be finalised expeditiously when required, however firstly, we continue our engagement with the Tanzanian Ministry of Minerals to consider practical ways in which the Imweru PFS can be completed and relevant mining approvals sought, to allow production to become, once again, a primary focus for the Company; and
· In the meantime, we will seek to implement our strategy of maximising the Projects' resource value in-situ, through, subject to funding, controlled exploration, with a view to building the JORC compliant resource to our initial target of one million ounces of gold as well as the pursuance of the joint venture interests referred to above.
Louis Coetzee, Executive Chairman of Katoro Gold plc commented: "Recent experience has demonstrated that the Company's gold Projects have value and we have taken the decision to push forward proactively, by seeking to build the Projects' resource inventory with an initial target of one million ounces of gold.
In the Board's view, this is entirely feasible recognising the known exploration opportunities, initially at Imweru and thereafter possibly at Lubando. By looking to achieve the one million ounce objective, we will look to demonstrate the substantial nature of our gold Project.
The Board believes that Imweru has the potential to deliver 50,000 ounce per annum gold production should the conditions allow and suitable financing for development and construction be secured. In this regard, we continue to work with the Tanzanian authorities to chart the correct course for the development of the Projects in a beneficial manner for the region and country, and also in a manner that generates commercial returns for the Company supporting the investment decision required for mine development.
I look forward to keeping shareholders updated on developments in this regard."
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.katorogold.com or contact:
Katoro Gold plc
+44 (0) 20 7409 3494
Strand Hanson Limited
+44 (0) 20 3700 0093
Isabel de Salis
+44 (0) 20 7236 1177
St Brides Partners Ltd
Investor and Media Relations Adviser
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