Shares in Tanzania-focused Katoro Gold PLC (LON:KAT) surged at the opening bell on Thursday after it confirmed plans to press ahead with the development of its Imweru project.
The AIM-quoted explorer had suspended feasibility work at the project while it assessed the economic viability in light of the new mining legislation in Tanzania.
READ: Katoro takes a long, hard look at economic feasibility of Imweru
But Katoro said on Thursday it believes there is “still good upside exploration and development potential” at Imweru, which currently has a resource of 515,110 ounces of gold.
Shares jumped 87.5% to 1.55p in early deals.
Tanzania’s new mining commission sat for the first time last week and indicated it was open to working with miners operating in the country to ensure the economic success of projects.
“We are delighted that the exploration / development upside potential for Imweru remains and hope that following further dialogue with the new Tanzanian Ministry of Minerals, we can take the project forward and ultimately develop a gold mine,” said executive chairman Louis Coetzee.
“Our optimism is further bolstered by the latest positive outcomes of discussions between the Tanzania Chamber of Mines and the MoM in relation to various contentious matters in the current mining legislation.”
On top of the news from Imweru, Katoro said it had made “excellent progress” to diversify its portfolio and has drawn up a short-list of projects that fit its investment criteria.