29th Jul 2019 12:25
(Alliance News) - Katoro Gold PLC on Monday said it has received interest from other parties for either the purchase of all or part of two projects in Tanzania.
Katoro has recently completed an internal review into the Imweru and Lubando gold projects on the Lake Victoria goldfields in the north of the country, with a combined gold resource of 754,980 ounces of gold.
Katoro has also decided the best opportunity in the near future is to build-up the projects' resource inventories, with a target of one million ounces, a "modest" 32% increase to the existing resource.
Imweru is more advanced, Katoro said, and that is where Katoro will now focus, and the company will now engage with the Tanzanian Ministry of Minerals to complete a pre-feasibility study and get the right approvals.
Executive Chair Louis Coetzee said: "Recent experience has demonstrated the company's gold projects have value and we have taken the decision to push forward proactively, by seeking to build the projects' resource inventory with an initial target of one million ounces of gold.
"In the board's view, this is entirely feasible recognising the known exploration opportunities, initially at Imweru and thereafter possibly at Lubando. By looking to achieve the one million ounce objective, we will look to demonstrate the substantial nature of our gold project."
"The board believes Imweru has the potential to deliver 50,000 ounces per annum gold production should the conditions allow and suitable financing for development and construction be secured. In this regard, 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 country, and also in a manner that generates commercial returns for the company supporting the investment decision required for mine development," Coetzee added.
Cora Gold shares were 4.6% higher on Monday morning at a price of 5.70 pence each.
The announcement was noted by Power Metal Resources PLC, which has a 6.0% stake in Katoro. PWM shares were down 14% at 0.45p.
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