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Katoro Gold RNS Release

Submission of Imweru Laboratory Samples


RNS Number : 3628P
Katoro Gold PLC
31 August 2017
 

Katoro Gold plc  (Incorporated in England and Wales )

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or  "the   Company")

 

 

 

31 August  2017

 

Submission of Imweru Laboratory Samples

 

 

Katoro Gold plc ("Katoro" or the "Company") (AIM: KAT), the Tanzania focused gold exploration and development company, is pleased to provide a further update on the continuing significant progress being made on the Imweru resource development program.

 

Highlights

 

·    Katoro successfully exported first batch of samples;

·    ESIA geohydrological study in final field work stage;

·    Resource Drilling Sample preparation complete and currently undergoing laboratory analyses;

·    Resource restatement and upgrade in advanced stage of development;

·    Pre-Feasibility Study ("PFS") already in advanced stage of execution; and

·    Preparation of Mining Right Application ("MRA") in advanced state of preparation.

As previously reported (see the Company's RNS dated 20 July 2017), sample preparation and analyses were the next high priority activities for the Katoro team in Tanzania, following early completion of the expanded drill programme. After completion of sample logging, selection, packaging and laboratory sample preparation, three sample batches, namely the metallurgical, geotechnical and resource samples were ready for despatch to different laboratories. Both the metallurgical samples and the resource batch samples (being the largest) were submitted earlier this month to designated laboratories in South African and Tanzania, respectively. The export of the geotechnical batch is currently underway and is expected to be complete by early September 2017.

·    Resource Samples: This batch, the largest of the entire collection of samples, has been delivered to a designated laboratory in Tanzania, thereby avoiding any unnecessary delays as a result of the new export rules under the recently amended mining legislation in Tanzania. Results from this analysis will enable a resource update and support the mine design for the Imweru mine.

·    Metallurgical Samples: This batch, which cannot be analysed in Tanzania, was successfully exported in late August after a lengthy process of Ministry of Energy and Minerals analyses and administration, which forms part of the new export process recently announced. The purpose of this analyses is to support extraction process flow design and final mine design.

·    Geotechnical Samples: Results from geotechnical sample batch, which also cannot be analysed in Tanzania is following the same export process as the metallurgical samples and will enable the final pit design of the Imweru mine.

·    A thorough review of the existing resource statement has been completed and all preparatory work has been completed to incorporate laboratory results referred to above into a restated and upgraded resource model for the Imweru project. With a substantial amount of work already completed in this regard, it is anticipated that the restated resource model will be completed in a short period of time from receipt of the final lab results;

·    The PFS for the Imweru mine commenced shortly after the Imweru drill programme commenced and all desktop work has now been completed. Engineering and Pit Optimisation studies are in an advanced stage, rendering the current status of the PFS similar to that of the resource statement in that it is only awaiting completion of the restated resource and results from the metallurgical and geotechnical tests, where after it will take a short period to complete.

·    Based on the considerable amount of information that already previously existed and the continuous stream of new data that has become available as part of the Imweru resource development programme, which the Company notes is still ahead of schedule, preparation and submission of the MRA could occur much sooner than originally scheduled.

·    All drilling required for the geohydrology study as part of the ongoing ESIA has also been completed and the final fieldwork activity, pump testing for flow and capacity will finish over the next couple of days.

Louis Coetzee , Executive Chairman of Katoro commented: "We are extremely pleased with progress on the Imweru resource development programme. The drilling programme is now completed and the site demobilised with only pump testing on three water holes continuing for twenty-four hours per hole. We are also very proud in our ability to adapt and adjust quick enough, to be one of the first, if not the very first company, to successfully export geological / metallurgical samples under the new mining legislation. This came as the result of excellent cooperation between the Ministry of Energy and Minerals and Katoro's technical and operational staff. We believe the successful export of this sample batch to South Africa demonstrates a willingness by the government to cooperate with industry to implement new regulations and to adjust where justified and necessary.

The work programme and development strategy for Imweru, as announced previously, remains ahead of schedule and within budget, with significant savings as the result of ongoing optimization which has allowed the Company to include a significant amount of additional technical work, to further enhance the Imweru feasibility study"

 

Contacts

Louis Coetzee

+27 (0) 83 2606126

Katoro Gold plc

Executive Chairman

Jon Belliss

+44 (0) 20 7382 8300

Beaufort Securities Limited

Broker

Richard Tulloch

Ritchie Balmer

Frederick Twist

+44 (0) 20 7409 3494

Strand Hanson Limited

Nominated Adviser

Liz Morley

Molly Stewart

+44 (0) 20 3772 2500

Bell Pottinger

Investor and Media Relations

 

 

Katoro Gold - Notes to editors

 

In May 2017 Katoro acquired the Imweru and Lubando Gold Projects in Tanzania from Kibo Mining plc for a total consideration of £3.66 million and was admitted to trading on AIM.

 

Following the acquisition, Katoro owns 100% of the Imweru and Lubando Projects, which both have Mineral Resources established in accordance with the JORC (2012) Code. The total Mineral Resources stated for Imweru consist of 11.607 Mt at grade of 1.38 g/t for a Mineral Resource of 515,110 oz Au at a resource pay limit of 0.4 g/t for the open pittable material and 1.3 g/t for the underground material, while the Lubando Mineral Resources equate to 6.78 Mt at grade of 1.10 g/t for 239,870 oz Au at a pay limit of 0.4 g/t to a depth of 200 m and 1.3 g/t below the 200 m depth cut-off. The respective projects also include the earlier stage Sheba (within the Imweru Licence Portfolio and Imweru Option Portfolio), Pamba and Busolwa (both within the Lubando Licence Portfolio and Lubando Option Portfolio) projects.  The JORC Code compliant Competent Person's Report for each of Imweru and Lubando are available on Katoro's website www.katorogold.com .

 

The Company's primary focus is on advancing and developing Imweru through a work programme which will include, inter alia, a feasibility study and a drilling programme, with the aim, subject to funding, to commence production with an initial target of 50,000 oz gold per annum within 18-24 months from admission to AIM.

 

Updates on the Katoro's activities will be posted on its website www.katorogold.com .

 

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").


This information is provided by RNS
The company news service from the London Stock Exchange
 
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