Focused development

Katoro Gold’s primary focus will be on advancing and developing the Imweru Project. Accordingly, the majority of Katoro's resources are to be spent to advance Imweru through undertaking a work programme consisting of a work programme consisting of the completion of a PFS, drilling programme, a feasibility study and the application for a Mining Licence in respect of Imweru.

Accordingly, following the Company’s admission to AIM in May 2017, Katoro will immediately commence work on the PFS and drilling programme for Imweru. The drilling programme, which the Directors expect to commence in Q3 2017, is currently expected to consist of 8-10 holes for approximately 1,400 metres of Diamond and Reverse Circulation infill drilling. With drill hole spacing and target depths carefully planned, the drilling will, inter alia, seek to test strike and depth extensions of mineralised zones that were intersected by Kibo Mining’s 2013 drilling programme and to obtain a better understanding of the current geological and mineralisation models and thus provide better geological confidence in the ore body. The drilling will also serve to provide additional diamond drill core for geotechnical, mineralogical and density measurements to provide technical data for the feasibility study and, if required and subject to future funding, the completion of a DFS.

Drilling programme

The drilling programme is also designed, contingent on favourable results being obtained, to both increase the overall size of the current Mineral Resource and to potentially upgrade the majority of the existing Inferred Mineral Resource to a higher Mineral Resource classifications. On completion of the drilling programme, the geological models will be updated and a new Mineral Resource estimate will be prepared and the Directors hope that the upgraded Mineral Resource, or part thereof, will then be suitable for consideration for conversion into a Mineral Reserve as part of the feasibility study.

As part of the PFS and feasibility study Katoro Gold will also undertake, inter alia, metallurgical and preliminary geotechnical studies, mine modelling/optimisation studies, financial modelling and engineering, and preliminary socioeconomic and environmental studies. In order to complete the socioeconomic and environmental studies, which will need to be completed prior to the issue (but not the application) of a Mining Licence and, if required, a DFS, Katoro Gold will need to raise additional funding.

The Directors anticipate, subject to the results of the various work streams (including the drilling programme and the PFS) being positive, commencing its application for a Mining Licence before the end of 2017. As appropriate, depending on the progress of any application for a Mining Licence, Katoro Gold may seek to secure its continuing rights to the Imweru Project beyond the end of 2017 by applying for an extension to the current Prospecting Licence or for the grant of a Retention Licence. Further information on the licence application process within Tanzania, and the criteria to be satisfied before a Mining Licence (or other forms of licence, including a Special Mining Licence) can be granted.

Fast-tracked development decision

On the basis that the results of the work programme prove positive, the Directors medium-term strategy is to fast-track a mine development decision and, subject to securing the requisite funding, to commence initial production with a target of 50,000 oz gold per annum within 18-24 months following the Company’s admission to AIM in May 2017. 

Subject to securing additional funding and contingent on expansion of the Imweru Mineral Resource base, the Directors’ longer term strategy for Imweru is to seek to increase production to 100,000 oz gold per annum and develop a Mineral Resource base in excess of 1 Moz.