Lubando Offers additional potential in due course but work will focus initially at Imweru
Lubando is located in the Lake Victoria Goldfields region of northern Tanzania and forms part of the greater Lubando Licence Portfolio and Lubando Option Portfolio. Lubando is located approximately 75 km directly southwest of the city of Mwanza in northern Tanzania (approximately 160 km west-southwest by road) and 10 km south of the town of Kasama. The towns of Geita and Katoro lie respectively 22 km to the west and 57 km to the west-southwest.
The Lubando Licence Portfolio and Lubando Option Portfolio are located approximately 6 km from Lake Victoria’s Mwanza Gulf. The Lubando Project area lies approximately 7 km south of the Geita to Mwanza tarred road (Route B163) and exclusively comprises the Prospecting Licence PL6248/2009.
The eastern margin of the AngloGold Ashanti Geita Gold Mine holdings lies approximately 18 km to 33 the northwest of Lubando and Bulyanhulu Gold Mine, belonging to Acacia, lies approximately 35 km south of Lubando.
Lubando Mineral Resource
The Lubando Mineral Resources are stated at a 0.4 g/t pay limit by Minxcon in conjunction with the application of an optimised economic pit depth cut-off. The depth cut-off for the Lubando Project is 200 metres below surface. Mineral Resources occurring below the 200 m depth cut-off have had a pay limit of 1.3 g/t applied. The Mineral Resources have also taken cognisance of a 5 per cent. geological loss, which is deemed appropriate for this type of mineralised body and for the envisaged mining methodology, namely open pit. (Source: Imweru CPR Executive Summary, “Mineral Resources”). The Lubando Mineral Resources as calculated by Minxcon as at 10 March 2017 presented a total Inferrred Resource of 239,870 Au oz..
The development of a gold mine at Imweru is Katoro Gold's primary near-term objective and the Company's cash resources will be predominantly applied towards the completion of a PFS, drilling, feasibility study and application for a Mining Licence in respect of the Imweru Project.
Katoro Gold believes that the development prospects of Lubando will benefit from the results of the work programme being planned for Imweru, as the geology and the character of the gold mineralisation at both projects are similar as evident from the technical work completed on both of them to date. These factors, together with the relative proximity of the two projects, may enable synergies between them to be exploited. These synergies may result in significant cost savings in any future mine development at Lubando, such as in possible shared processing facilities, although no studies to test the economic feasibility of this have been conducted to date.
The next step in the development of Lubando, subject to attaining the necessary funding, would be to complete a Preliminary Economic Assessment (or Scoping Study), the results of which would determine whether a drilling programme should then be undertaken to further update the Mineral Resource at Lubando and more generally progress the project.