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Katoro Gold unveils major expansion and value-creation plans for Tanzanian gold projects (KAT, POW)

Monday morning saw Katoro Gold (LSE:KAT) jump by more than a fifth to 1.14p a share after confirming third-party interest and expanded exploration plans for two of its gold projects in northern Tanzania.

The £1.92m business said that it had received expressions of interest around a purchase of – or joint venture agreement on – its Imweru and Lubando gold projects in the Lake Victoria Goldfields. Although no suitable agreement has yet been made, Katoro said the interest shows a ‘clear appreciation of the inherent value’ of the projects, which have a combined JORC-compliant gold resource of 754,980oz.

With gold prices rising and a recent review confirming exploration upside potential at both Imweru and Lubando, Katoro said the best way to create near-term value would be to build up the projects’ resource inventory. Indeed, it is targeting an initial target of 1MMozs of gold across both sites, an increase of nearly a third on existing resources.

The firm’s focus will initially be on Imweru, as it is the more advanced of the two sites.  Here, it will work to identify the lowest-cost route to adding ounces and quantify gold in extensions to mineralisation along strike and at depth. As it stands, just 30pc of Imweru’s priority one exploration ground has been explored fully. Meanwhile, the site’s previous owner Kibo Energy estimated that its resource expansion potential could sit at between 40pc and 80pc.

This article was first published on our sister site MiningMaven on 29/07/2019. To read it in full, please click here, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

  • Daniel Flynn does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.
  • Daniel Flynn has been paid to produce this piece by the company or companies mentioned above.
  • Digitonic Ltd, the owner of, currently holds a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.
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