Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
("Katoro" or "the Company")
Dated: 20 March 2018
Katoro Gold Plc ('Katoro' or the 'Company')
Katoro Gold Plc (AIM: KAT), the Tanzania focused gold exploration and development company, is pleased to provide an update on its Imweru Gold Project ("Imweru") in Tanzania.
As per the Project Update announcement dated 9 March 2018, the Company is currently assessing the economic feasibility of Imweru, based on the preliminary pre-feasibility results and the new mining legislation and regulations in Tanzania. An integral part of the Company's assessment will amongst others include:
· Consideration of a further exploration work programme to enhance and expand the current resource, by exploring some of the previously identified exploration targets that form part of the Imweru / Lubando gold project (To date only about 50% of the Imweru and Lubando project areas have been explored); and
· Engagement with the Tanzanian Ministry of Minerals to seek to agree the mining licence application for Imweru, to ensure its economic feasibility based on the new mining legislation and regulations.
The Company expects to complete the assessment referred to above by the end of Q2 / early Q3 2018. The Company has decided to suspend all ongoing feasibility work on the Imweru project until it has reached a final decision on the economic viability and further development of Imweru.
The Company has employed a sensible financial policy, ensuring that expenditure remained low and substantial savings over the original budget have been realised over the past 12 months. Accordingly, the Company currently has a strong cash position of approximately £540k that enables it to continue with the execution of its strategy and work programmes.
Additionally, the Board has decided to seek to diversify Katoro's portfolio and has approved a specific strategy and programme for the identification and evaluation of new / additional projects.
Executive Chairman, Louis Coetzee commented: "It should be remembered that is has always been the Company's objective to bring the Imweru gold project into production on an expedited basis, so as to generate sufficient revenues to self-fund the further development and expansion of the Imweru and Lubando gold projects. Having considered the preliminary findings of the pre-feasibility work, as well as the impact of the recent updates to the mining regulations in Tanzania, we have decided to first assess the current economic viability of Imweru to determine whether we should continue with the present development strategy or whether an adjustment is required, to ensure optimal utilisation of resources and realisation of the full potential of the Imweru / Lubando gold projects. Naturally, this will delay our planned timetable to production, but the fact remains that we are currently at a stage of the feasibility study where we need to make critical strategic decisions that will determine the success or failure of the Imweru gold project and we therefore need to ensure that we take these decisions responsibly.
"We are also committed to diversifying our asset portfolio and are assessing various projects that the Board believes to be value accretive opportunities. I look forward to updating shareholders with our progress and findings moving forward."
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) 203 7000 093
Isabel de Salis
+44 (0) 207 236 1177
St Brides Partners Ltd
Investor and Media Relations Adviser
Notes to editors:
In May 2017 Katoro was admitted to trading on AIM. Katoro owns 100% of the Imweru and Lubando Gold Projects in Tanzania, 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 current focus is on advancing and developing Imweru as well as considering other opportunities to diversify its portfolio.
Updates on the Katoro's activities will be announced as required and posted on its website www.katorogold.com.
This information is provided by RNS