London-listed Katoro Gold AIM:KAT has seen its shares boosted today, up by 18% in trading on Friday. The AIM-quoted company focuses on gold and mineral exploration and currently has two projects in Africa, although it says it is planning to diversify its portfolio with further acquisitions.
Katoro Gold focuses on what it calls “high impact exploration and development projects” rather than looking to build a diverse portfolio of mining targets.
Shares in the micro cap junior miner were up off a floor of 0.08p to trade at 0.11p. The shares are still down over the YTD period, off nearly 20%. Shares have historically traded as high as 3.5p and there is a 52 week high of 0.17p.
Haneti project in Tanzania
Katoro Gold is planning to move towards the next stage in its exploration phase at the Haneti project in Tanzania, having completed a 900m drill programme across three holes. This is a joint venture project where it holds a 65% interest alongside Power Metal Resources. This is still at an early exploration stage, and Katoro has said current activities are focused on the development and confirmation of an anomaly.
A further technical review of the Haneti project is currently underway and this will include a detailed review of the historical exploration, including a possible new approach targeting potential for both nickel and copper at the site.
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Lake Victoria Gold
Katoro Gold is also due EUR 792,000 from Australian private company Lake Victoria Gold following a transaction involving a JV agreement which related to Katoro’s Lake Victoria gold mine at Imweru. This liability is in dispute and Katoro is known to be pursuing this with its legal advisors.
Katoro Gold’s Blyvoor gold mining prospect
In addition, there is the Blyvoor gold mine in South Africa which includes six tailings dams containing 1.3m oz of JORC compliant resources at an average grade of 0.3 g/t Au. The company wants to ramp up production here to 500,000 tpm after year three. There is a projected 25 year mine life at Blyvoor.
The company said last month that it is looking at some potential new opportunities. Currently formal agreements are still required before these can be added to the Katoro portfolio.
“The strong African and global technical capabilities accessible by the Company are opening up a wide range of possibilities, to develop existing interests and in the potential acquisition of new opportunities,” Katoro Gold said recently. “This includes an ability to stake new ground in strategic locations and, if relevant to consider acquisitions or earn-ins on existing project interests.”
Katoro had previously also been pushing forwards with an iron ore project in Namibia, but had not been satisfied with the evidence of ownership of the project provided by its JV partner.
Katoro is also in the process of sourcing a new CEO, which it said is well advanced. There may also be a restructuring of the board as well.
While the stock has traded at much higher valuations in the past, Katoro is in need of direction and some new projects. With Imweru seemingly on course for litigation and its Namibian interest dead in the water, Katoro management will need to be able to show potential investors something interest to justify any share price upside at this stage.
