Katoro Gold makes move into uranium exploration

9th Sep 2024 14:20

(Sharecast News) - Katoro Gold has made its first move into uranium exploration, it announced on Monday, by acquiring the White Pine Uranium Project in Ontario.

The AIM-traded firm said the project, covering 8,036 hectares, marked a strategic expansion for the company into the uranium sector.

It said the White Pine site was located near the Trans-Canada Highway, providing easy access for future exploration activities.

While still in its early stages, historical data collected from 1980, 2003 to 2005, and 2008 indicated the potential for a significant uranium discovery at White Pine.

Key findings included highly anomalous uranium levels in lake sediments throughout the project area, a geophysical airborne radiometric signature pointing to the presence of radioactive minerals, and a geological setting between two granitic rock bodies with known occurrences of radioactive minerals.

Katoro said it was planning to undertake initial reconnaissance and sampling at the site, alongside a desktop-based assessment over the next six months.

The initial work, which would cost around £5,000, would determine the next steps for further exploration.

Katoro said the project was held by its newly-formed subsidiary Katoro Canada, which holds a 100% interest in White Pine.

In addition to White Pine, Katoro said it was reviewing further opportunities in precious and critical metals, including uranium, both in Canada and southern Africa.

"I am very pleased to announce this development at Katoro," said interim chief executive officer Patrick Cullen.

"In parallel with the work done in refinancing, reorganising and stabilising the business, we have been reviewing a range of new opportunities of varying scale and complexity, with uranium being one metal we are focused on.

"White Pine represents a notable first step into uranium exploration for Katoro at what the board believes is an opportune time and in a world class jurisdiction."

Cullen said the "significant" uranium experience within the leadership team and the company's expanded network enabled it to evaluate and move quickly on the opportunity.

"The archives of the Ontario Ministry of Mines and other resources in the public domain provide abundant exploration data acquired by exploration companies and various government programmes.

"These data all point towards significant uranium prospectivity in our target area.

"I look forward to providing updates on this exciting acquisition and other developments within the business."

At 1217 BST, shares in Katoro Gold were up 1.66% at 0.1p.

Reporting by Josh White for Sharecast.com.