Katoro Gold plc (Incorporated in England and Wales)

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

04 March 2021

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

BLYVOOR GOLD TAILINGS PROJECT: GENERAL UPDATE  

Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to provide a general update on the Blyvoor Gold Tailings Project ("the Project") following the Company's RNS' dated 15 December 2020 and 22 December 2020, respectively. 

Highlights

·    Confirmatory metallurgical test work completed;

·    Integration of metallurgical test results into final CPR and related reports completed, pending final outcome of metallurgical optimization;

·    Metallurgical (processing and recovery) optimization process underway; and

·    Final phase of funding discussions in advanced stage

Following significant delays to complete the confirmatory metallurgical test work on account of COVID-19 disruptions, the final metallurgical test results have now been received and duly processed. The metallurgical test results, as expected, confirmed the findings of the CPR but also identified optimization opportunities related to metallurgical processing that could improve gold recoveries. In previous announcements it was stated that when subjected to a sensitivity analysis, the Project is most sensitive for grade. It therefore follows that all efforts should be made to mitigate this sensitivity by thoroughly investigating all possibilities that may improve and ensure optimal recovery rates. Based on the optimization opportunities referred to above, the Company is now presented with an ideal opportunity to initiate such an optimization study in an effort to reduce the Project's sensitivity in this regard. The optimization study will determine whether processing and recovery can be further improved and to what extent. Any improvement on either or both these elements that could be implemented within acceptable cost parameters, will significantly improve the already robust economics of the Project.

Funding negotiations continued and progressed well in the interim and can now move towards finalization and conclusion, after receipt of the metallurgical test results confirming the positive findings of the CPR.  

Louis Coetzee, Executive Chairman of Katoro, said: "We are extremely pleased with the findings of the CPR thus far. The outcomes from the report confirm that the Project is technically and financially very robust. The Company is in the meantime focussing all its efforts on concluding funding arrangements for the Project as soon as possible, based on a very attractive investment case."

**ENDS**

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