Katoro Gold PLC Project Update (2134I)
March 20 2018 - 3:01AM
UK Regulatory
TIDMKAT
RNS Number : 2134I
Katoro Gold PLC
20 March 2018
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 20 March 2018
Katoro Gold Plc ('Katoro' or the 'Company')
Project Update
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 GBP540k 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."
**ENDS**
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:
Louis Coetzee louisc@katorogold.com Katoro Gold Executive Chairman
plc
Richard +44 (0) 20 Strand Hanson Nominated Adviser
Tulloch 7409 3494 Limited
Ritchie
Balmer
Frederick
Twist
Ben Tadd +44 (0) 203 SVS Securities Broker
Tom Curran 7000 093
Isabel de +44 (0) 207 St Brides Investor and
Salis 236 1177 Partners Ltd Media Relations
Priit Piip 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
The company news service from the London Stock Exchange
END
UPDEAFDNFEFPEAF
(END) Dow Jones Newswires
March 20, 2018 03:01 ET (07:01 GMT)
Katoro Gold (LSE:KAT)
Historical Stock Chart
From Apr 2024 to May 2024
Katoro Gold (LSE:KAT)
Historical Stock Chart
From May 2023 to May 2024