Katoro eyes one-million-ounce resource extension target
A review completed by Aim-listed Katoro Gold has confirmed the exploration upside potential across both its Imweru and Lubando gold projects, in Tanzania.
The company had received expressions of interest from other parties interested in potentially acquiring the projects or working with Katoro on the projects.
Katoro has, however, not reached a suitable agreement with any party.
Given the interest shown in collaborating on the development of or acquiring the projects, coupled with a strong gold price of $1 400/oz, Katoro has decided to investigate the scope and cost for further exploration work programmes at the two projects that could potentially increase the resource to an initial one-million-ounce target.
The company believed the best opportunity to create near-term value was to build the projects’ resource inventory, increasing the resource by 32% to achieve the one-million-ounce target.
The Imweru project is more advanced at this stage and the initial focus would be to identify the most expeditious, low-cost route to adding ounces to the existing resource, notably to quantify gold in extensions to mineralisation along strike and depth.
To date, only 30% of the Priority 1 exploration ground at Imweru has been fully explored.
Katoro said the Imweru prefeasibility study could be finalised expeditiously when required; however, the company first wanted to continue engagement with the Tanzanian Ministry of Minerals to consider practical ways in which the study could be completed and relevant mining approvals sought, to allow production to become a primary focus for the company.
The board believed Imweru had the potential to produce 50 000 oz/y of gold.
“We continue to work with the Tanzanian authorities to chart the correct course for the development of the projects in a beneficial manner for the region and the country and also in a manner that generates commercial returns for the company,” said Katoro chairperson Louis Coetzee.
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