Aim-listed Katoro Gold on Thursday confirmed that there was good upside potential for the further development of its Imweru gold project, in Tanzania.
The company assessed the economic viability of the project, based on the results of a prefeasibility study and the new mining legislation and regulations being implemented in Tanzania, in March.
Tanzania's new Mining Commission last week indicated that it was open to engaging with companies to ensure the economic success of projects within the framework of the current mining legislation.
“We are delighted that the exploration and 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,” CEO Louis Coetzee said in a statement.
He added that the company has made progress as it seeks to diversify Katoro's portfolio. It has assessed several projects and drawn up a shortlist of projects that fit its investment criteria.