TIDMKAT
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 Katoro Gold plc Executive
2606126 Chairman
--------------- ----------- -------------------- -----------
Jon Belliss +44 (0) 20 Beaufort Securities Broker
7382 8300 Limited
--------------- ----------- -------------------- -----------
Richard +44 (0) 20 Strand Hanson Nominated
Tulloch 7409 3494 Limited Adviser
Ritchie
Balmer
Frederick
Twist
--------------- ----------- -------------------- -----------
Liz Morley +44 (0) 20 Bell Pottinger Investor
Molly Stewart 3772 2500 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
GBP3.66 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
END
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