Blyvoor Gold Tailings Project: Resource Results

RNS Number : 7337I

Katoro Gold PLC

15 December 2020

 

Katoro Gold plc (Incorporated in England and Wales)

( Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

 

15 December 2020

Katoro Gold plc ('Katoro' or the 'Company')

BLYVOOR GOLD TAILINGS PROJECT: RESOURCE RESULTS

Katoro Gold plc (AIM: KAT), the AIM listed   gold and nickel exploration and development company, is pleased to announce the results of a Mineral Resource update, following its recent drilling programme at the Blyvoor Gold Tailings Project ('the Project') in which it holds a 50% participating interest.  This announcement reports on a restated SAMREC-compliant combined Mineral Resource Statement for Blyvoor TSF 1, 6 and 7 and Doornfontein TSF 1, 2 and 3 gold tailings storage facilities (refer Table 1 below).  Previous technical work on the Project was reported in a Company RNS announcement on the 7 May 2020 (Scoping Study Results) and shareholders should also refer to more recent general Project updates of the 30 September, 16 November and 30 November 2020 respectively.

Highlights

· Blyvoor TSF 6 & 7

o  109 % increase in Measured Resource to 49 Mt @ 0.32 g/t (504,000 oz.)

o 216% increase in combined Measured and Indicated Resource to 84.3 Mt @ 0.32 g/t (876,000 oz.) representing approx. 62% of total restated resource  

· Preliminary modelling by Minxcon (Pty) Ltd ("Minxcon") indicates that between 90 and 94% of the Blyvoor TSF 6 and 7 portion of the restated Mineral Resource may potentially be converted to a Probable Mining Reserve on the completion of the feasibility study work currently in progress

Discussion

The laboratory results from the recent drilling programme (RNS 3 September 2020) were integrated with previous drilling results by mining consultant Minxcon to produce an updated Mineral Resource Statement. The recent drilling focussed on Blyvoor TSF 6 and 7 and the results of this drilling were combined with previous drill results from the other tailings facilities, namely Blyvoor TSF 1 and Doornfontein TSF 1, 2 and 3, to produce the updated Mineral Resource.

The changes in the Mineral Resource highlighted above are in comparison to the figures from the previously stated Mineral Resource which formed part of a scoping study also carried out by Minxcon and reported in the Company's RNS of 7 May 2020. This Scoping Study demonstrated good economic potential in the project and that it warranted a follow-on full Definitive Feasibility Study ('DFS'). This latest Mineral Resource update forms an important next step in the completion of the feasibility studies and the results provide additional confidence in the potential economic viability of the Project.

Unfortunately, the impact of COVID-19 in South Africa is continuing to delay progress with completion of the other elements of the DFS but the Company and its Joint Venture partners are continuing to contain and mitigate the impacts of these delays through cost control measures and careful contingency planning. Consequently, the metallurgical test work on samples from the recent drilling is currently delayed due to capacity constraints at South African laboratories after the recovery of mining activities following a long period of inactivity due to COVID-19.  The finalisation of a SAMREC Mineral Reserve and SAMVAL valuation of the Project can only be finalized upon receipt of all the outstanding metallurgical test results.

As was reported previously, discussions and negotiations with preferred funding entities are well advanced. The restated SAMREC Mineral Resource, an updated Mineral R esource and Mineral Reserve statement are key components / inputs to the SAMREC compliant CPR and SAMVAL valuation report, which is expected shortly following completion of the restated Mineral Resource. The SAMREC CPR and SAMVAL valuation reports are critical deliverables towards the finalisation of the funding process as elaborated on in the RNS dated 30 November 2020.

Louis Coetzee, Executive Chairman of Katoro, said:   "The technical development of the Blyvoor Project, supporting the rapidly advancing funding process, has now reached the critical final stages where new and historical work is integrated and optimised. The preliminary resource update results have exceeded expectations with a c. 10% increase in the total resource, but most importantly, with a c.62% component of the total Blyvoor Project resource (all the TSF's) now in the Measured and Indicated category.

"A further extremely positive indicator is the expected future conversion of c. 90 - 94% of the total diluted resource for TSF 6 and 7 to a Potential Proven and Probable Reserve. Additional resource upgrade work for the remaining TSF's is not necessary at this stage and will be conducted once the Blyvoor Project goes into production as part of ongoing production planning.

"As we have always believed in the viability of this project, the preliminary results reported in this RNS support our initial assessment and will significantly progress ongoing funding initiatives."

Background details on the Project are available in the announcements of 30 January 2020, 7 and 29 May 2020, 1 and 21 July 2020, 3 and 30 September 2020 and 16 and 30 November 2020 respectively on the Company's website at www.katorogold.com  

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

Review by Qualified Persons

Information in this announcement that relates to the Blyvoor Mineral Resource is taken from the report titled "Note for The Record, Katoro TSF Gold Project (Blyvoor Joint Venture)" ("the Report") date 14 December 2020 (the "Report"). The Report states a SAMREC-compliant Mineral Resource estimate and was prepared for the Katoro TSF Gold Project (Blyvoor Joint Venture) in which Katoro Gold plc holds a 50% attributable interest, by Uwe Engelmann, BSc (Zoo. & Bot.), BSc Hons (Geol.) Pr.Sci.Nat., MGSSA. Mr Engelmann as principal author responsible for the Report has extensive experience in the evaluation and reporting of Gold projects and is a "Competent Person" for reporting gold resources to the SAMREC Standard. He consents to the inclusion in this document of the matters based on his information in the form and context in which they appear.

Information contained in this announcement has also been reviewed by Mr. Noel O'Keeffe, geologist, BSC.  P.Geo, who is a Member of the Institute of Geologists of Ireland. Mr. O'Keeffe has several years' experience in the evaluation of gold projects.

**ENDS**

For further information please visit www.katorogold.com  

Bhavesh Patel Andrew Thomson	[phone]	RFC Ambrian Limited	Nominated Adviser
Nick Emmerson Sam Lomanto	[phone]	SI Capital Ltd	Broker
Isabel de Salis Beth Melluish	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

Additional Information

The Project consisting of Blyvoor TSF 1, 6 and 7 and Doornfontein TSF 1, 2 and 3 will be operated by the Blyvoor Joint Venture.

Table 1 Updated Mineral Resource Statement  Table 2 - Katoro's Attributable
 Minxcon Report dated 14 December 2020  Interest

		TOTAL					*50% ATTRIBUTABLE TO KATORO
Description	Mineral Resource Classification	tonnes	Au	Content			tonnes	Au	Content
		Mt	g/t	Oz ('000)			Mt	g/t	Oz ('000)
TSF 6	Measured	30.7	0.32	320			15.35	0.32	160
TSF 7	Measured	18.3	0.31	185			9.15	0.31	92.5
Tot Measured		49	0.315	504			24.5	0.315	252
TSF 6	Indicated	14	0.3	134			7	0.3	67
TSF 7	Indicated	21.31	0.35	238			10.655	0.35	119
Total Indicated		35.31	0.325	372			17.655	0.325	186
Total Measured & Indicated		84.31	0.32	876			42.155	0.32	438
TSF 1	Inferred	23.7	0.31	234			11.85	0.31	117
TSF 6	Inferred	9.3	0.32	96			4.65	0.32	48
TSF 7	Inferred	18.1	0.24	137			9.05	0.24	68.5
Doornfontein 1	Inferred	7.2	0.25	58			3.6	0.25	29
Doornfontein D2	Inferred	0.5	0.,25	4.1			0.25	0.25	2.05
Doornfontein D3	Inferred	0.7	0.52	12.1			0.35	0.52	6.05
Total Inferred		59.6	0.315	542			29.8	0.315	271
Total Restated Resource		143.91	0.31	1418			71.955	0.31	709
Notes:
1.  No cut-off applied.							*This table is calculated from Table 1
2.  No geological loss applied.
3.  Mineral Resources are stated inclusive of Mineral Reserves.
4.  Mineral Resources are reported as total Mineral Resources and are not attributed.

Glossary of Technical Terms

Au			Chemical symbol for gold
"Cut-off grade"			The cut-off grade is the level below which material within an ore body does not contain sufficient value to economically justify processing into a final saleable form
"density"			Measure of the relative "heaviness" of objects in terms of constant volume. Density =-mass/volume
"g"			Gram - a metric unit of weight
"g/t"			Grams per metric tonne - a measure of weight of the economic mineral (e.g. gold) is in each metric tonne of material to be mined
"Indicated Mineral Resource"			That part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and quality can be estimated with a moderate level of confidence. Based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes. The data-point locations are appropriate to confirm physical continuity, while they are too widely or inappropriately spaced to confirm quality continuity. However, such locations are spaced closely enough for quality continuity to be assumed.
"Inferred (Mineral) Resource"			That part of a mineral resource resource for which tonnage, grade and  quality can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified physical continuity with or without coal quality continuity. Based on exploration, sampling and testing information gathered through appropriate techniques from locations such as  outcrops, trenches, pits, workings and drill-holes which is limited or of uncertain quality or reliability.
	"kg"	Kilogram (one thousand grams) - a measure of weight
	"koz"	One thousand ounces - a measure of weight
	"m"	A metre - a measure of length or thickness
	"Measured Mineral Resource"	A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit
	"Mineral Resource	A "Mineral Resource" is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
	"Mt"	Abbrev. for megaton (measure of weight). Equals 1 million tonnes
	"SAMREC"	South African Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
	SAMVAL	South African Code for the Reporting of Asset Valuations
	"t"	A metric tonne - a measure of weight

 

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