Wrap Text
KBO - Kibo Mining Plc - Operational Update
Kibo Mining Plc
(Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B61XQX41
("Kibo" or "the Company")
Operational Update
Dated: 21 June 2012
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO, AltX: KBO) the mineral
exploration and development company focused on gold, nickel, coal and uranium
projects in Tanzania, is pleased to provide an operations update. The Company
has received final results from its Stage 1 exploration programme at its Lake
Victoria, Haneti amd Morogoro projects which it implemented over the period
October 2011 to March 2012. The results highlights are shown below and discussed
in detail later in this announcement. The results are very encouraging, and
support the programme`s primary objective of identifying initial targets for
near term drilling. Drilling together with extension of early stage exploration
surveys over more of the Company`s large licence portfolio will be part of a
Stage 2 programme to commence in Quarter 3, 2012.
Summary Highlights
*Lake Victoria - Drill and trenching targets resolved on three Prospecting
Licences;
*Haneti - Drill targets for nickel sulphide mineralisation resolved from
ground electromagnetic surveys at Mwaka and Mihanza Hills;
*Morogoro South - Six gold-in-soil anomalies identified from regional
sampling along the central 28 km strike length of the Ruvu Nappe;
*Morogoro North - Ten gold-in-stream anomalies identified from regional
stream sediment sampling over two southern Morogoro North Prospecting
Licences.
Louis Coetzee CEO of Kibo commented:
"The Board is pleased to provide this operational update and to inform
shareholders that all the objectives set for Stage 1 of Kibo`s two stage
exploration program have been achieved, i.e. technical, cost and time. With
regard to cost and time it is worth noting that the company completed Stage 1
two months ahead of schedule and within the approved budget"
Operations Details
Introduction
Kibo`s Lake Victoria, Haneti and Morogoro projects give the Company access to an
approximate 18,000 km2 land package of highly prospective early stage
exploration ground for gold and base metals within Tanzania`s established and
newly emerging mineral exploration areas. Stage 1 field exploration, the results
of which are being reported here, had a budget of GBP1.3M and was the first
stage of a board approved GBP5.3M exploration programme to comprehensively
evaluate these projects with the objective of discovering and outlining gold
(Lake Victoria and Morogoro) and base metal (Haneti) resources. The Company
implemented the Stage 1 programme to follow up on priority target areas which
were selected based on positive results from previous regional sampling surveys
and geological reconnaissance. The programme comprised three main elements of
early stage exploration surveys as follows:
1. In-fill soil surveys over gold anomalous areas identified from previous
regional soil surveys within selected prospecting licences on the Lake
Victoria project;
2. Pitting and ground geophysics at Haneti to test both laterite and sulphide
nickel targets identified from previous soil, trenching and geophysical
surveying;
3. First pass regional stream and soil sampling surveys over priority areas
identified on Morogoro South (Ruvu Nappe geological target) and Morogoro
North (Berega and Gairo areas).
The areas identified for this initial work represent about 5% of the total
ground area potentially available to the Company and covers those Prospecting
Licences ("PLs") which have been recently issued ("active PLs") from the large
portfolio of Company applications, renewals and offers that are in the pipeline.
As Tanzanian licence regulations do not permit commencement of field work in an
area until the relevant PL becomes active and there is a system delay of up to 1
year in processing and issuing PLs, the Company did not have all the licences
available to it for exploration for which exploration expenditure had been
allocated.
This has resulted in just GBP0.6M expenditure from the Stage 1 budget of GBP1.3M
during the exploration period with the shortfall affecting the Lake Victoria
project in particular. The balance will be carried forward as part of Stage 2
exploration to be expended as PLs become active. It should be noted that many of
these PLs encompass highly prospective areas which remain to receive first pass
exploration.
The following section describes in detail the field work carried out during
Stage 1 exploration. Maps to accompany this section can be found under the
"Projects" menu on the Company`s website www.kibomining.com.
Lake Victoria
Introduction
Work on the Lake Victoria project focused primarily on areas where previous
reconnaissance soil sampling has produced anomalous gold values. Three PLs were
selected for follow up infill soil sampling, 6283/2010, 7589/2012 and 7590/2012.
A fourth, 5243/2008, which had not received previous work was also selected for
detailed soil sampling based on its proximity to a small historic gold showing.
PL 6283/2010
A total of 397 infill soil samples were taken on PL 6283/2010 centred on a small
banded ironstone ridge over which regional sampling from 2007 had produced a
number of values in excess of 100 ppb gold. An area of 3.7 km2 on a grid spacing
of 100 m by 100 m was sampled to verify and provide infill soil sample coverage.
The results confirm and further resolve the previous anomaly which now extends
to the NW from the ridge over 2 km and remains open-ended to the NW. Soil gold
values on the ridge where bedrock is exposed are up to 219 ppb while the anomaly
is defined by gold values in the range 20 to 50 ppb off the ridge towards the
NW. Further work in this area will comprise trenching and sampling across the
anomaly on the ridge top to ascertain if zones of economic gold grades can be
established in bedrock. Soil sampling will also be extended to the NW to define
the full extent of the gold anomaly. Should the results of this work prove
encouraging, Rotary air blast (RAB) drilling will be undertaken to test for gold
mineralised zones particularly in areas where the soil anomaly may persist over
deeper regolith cover to the NW.
PL 7589/2012
A total of 266 infill soil samples were taken on PL 7589/2012 over an area of
1.8 km2 on a banded ironstone ridge where soil regional sampling from 2007
showed values in the general range 20-50 ppb with a maximum outlier value of 524
ppb. The infill soil sampling was undertaken on a grid at 50 m by 100 m and the
results define a gold anomaly broadly coincident with the NW trending ridge over
a distance of 1.5 km. The gold anomaly is defined on gold values in the range of
20 to 50 ppb and a maximum value of 149 ppb. The gold values whilst considered
anomalous are not exceptional given their location on a ridge of ironstone
outcrop and rubble where they most likely reflect the background gold values to
be expected in this type of rock. However they are sufficiently interesting to
warrant additional prospecting, rock sampling and trenching particularly at
locations where gold-in- soil values are highest.
PL 7590/2012
A total of 353 infill soil samples were taken on PL 7590/2012 over an area of
3.2 km2 where previous regional soil sampling results showed some multi-point
anomalous gold values in the range 20 -50 ppb on four sample lines 400 m apart.
The infill soil sample results are very encouraging and have resolved the
previous sample results into a number of multi-point and individual high gold in
soil values which collectively show a NW trend. Anomalous gold values are in the
general range 20 to100 ppb with high outlier values of 543, 133 and 187 ppb. The
sampled area which covers flat cultivated land provides an immediate RAB
drilling target for the Company`s Stage 2 exploration programme.
PL 5243/2008
A soil sampling survey was undertaken on PL 5243/2008 immediately to the south
of a small historic gold working on an area of mapped greenstone to test for
possible additional mineralised structures associated with this working. The
soil sampling grid was orientated N-S, sample lines were 400 m apart and
sampling was at 200 m stations. A total of 180 samples were taken over an area
of approximately 15 km2. Apart from one single anomaly point of 50 ppb, 30% of
the samples showed gold values in the range 1 to 20 ppb and the remainder had
gold values less than the detection limit. The soil results here are
disappointing and this PL will not be a priority for follow up during Stage 2
exploration.
Planned Stage 2 work at Lake Victoria
Specific follow up work on PLs 6283/2010, 7589/2012 and 7590/2012 where
encouraging results have been obtained from Stage 1 exploration will comprise
extension of infill soil sampling, trenching, geological mapping, rock sampling
and RAB drilling. It is likely that a RAB drilling programme will be undertaken
on PL 7590/12 in the near term while the other PLs will require further surface
evaluation (trenching, rock sampling and geological mapping) to see if drilling
programmes are warranted. Concomitant with the work on these areas, geological
appraisal of the remaining large number of Kibo licences within Lake Victoria is
on-going and field programmes will be implemented according as the PLs become
active.
Haneti
Field exploration at Haneti followed up on the anomalous nickel values
previously obtained from soils, pitting and trenching in the Kwahemu, Yobo,
Mihanza and Mwaka hill areas east of Haneti Village. Previously reported results
included 93 m at 0.4% nickel from trenching Mwaka Hill and a soil anomaly with
values of 0.1% to 0.3% nickel at Kwahemu Hill. The field programme at Haneti
comprised two elements:
A. Initial pitting programme to evaluate depth of weathering and nickel laterite
potential in the lower relief areas between and adjacent to the small hills such
as Kwahemu and Yobo where modestly nickel enriched laterite profiles have been
established from previous pitting and sampling surveys;
B. Ground EM and magnetic surveys over Mwaka and Mihanza Hills to verify nickel
sulphide potential on these target areas where a previous Induced Polarisation
(ground geophysical method) survey at Mihanza had already identified a conductor
suggesting the possible occurrence of nickel sulphide mineralisaton at depth.
Pitting
The pitting programme at Haneti was undertaken between the NW end of Kwahemu
Hill and Mwaka Hill over an area of 10 km2. Pits were manually excavated at 400
m spacing along three NE-SW lines of lengths 2, 2.8 and 3.2 km respectively. A
total of 23 pits were planned but hard ground conditions allowed for just 14
pits to be successfully excavated and sampled. Pits were dug to depths varying
from 1.7 m to 4.9 m (depending on ground conditions) and channel sampled down
the sidewalls in contiguous intervals varying from 0.3 m to 1 m. The pit
profiles showed poor laterite development over the area sampled and the majority
of the pits encountered bedrock of serpentinite, amphibolites or granite-gneiss
at shallow depth. A total of 52 samples including QC samples were submitted to
ALS labs in Mwanza (preparation) and onward to Johannesburg for 30 g gold fire
assay and multi-element analyses. As expected from the shallow regolith profiles
the sample results showed no significant values for all elements and the maximum
nickel value was 0.27%.
The pitting survey was a trial programme to test the potential for the
development of a deep laterite profile with economic nickel grades at the
sampled locations. While the results show no laterite nickel potential in the
area tested, the results do provide valuable geological information and confirm
serpentinite sub-outcrop over a wider area than had been previously mapped.
Weathering of this rock in a favourable geological environment provides the
source for lateritic nickel and the area tested represents <10% of a larger belt
which extends up to 80 km along strike and uncertain maximum width which is
believed to be underlain by this type of rock. Based on the results and
difficulties encountered in penetrating the hard ground, further testing of
laterite nickel potential will be by RAB drilling.
Ground EM & magnetic survey
The ground electromagnetic (EM) and and magnetic surveys were carried under
contract by Spectral Geophysics of Botswana (Spectral) over areas of 7.2 km2 and
7.56 km2 at Mwaka and Mihanza Hills respectively. Time domain EM surveying
(TDEM) was conducted over 500 m by 200 m rectangular transmitter loops at 50 m
stations on NW-SE trending lines 200m apart using a 3 component time domain
system with a base station frequency of 1 Hz.
Magnetic surveying was carried out over the same gridded area. The results
presented below are summarised from the geophysical report prepared by Spectral
on their interpretation of the results from the surveys.
At Mwaka Hill, the EM results have indicated two NW-SE trending conductors of
800m and 400m in length respectively which could be associated with nickel
sulphide mineralisation at depth. The significance of these conductors can now
only be ascertained by drilling and they provide two well resolved drill targets
which will be tested as part of Stage 2 exploration at this locality.
At Mihanza Hill, the EM results has indicated a large formational conductor,
which is most likely associated with serpentinised ultramafics. However, the
geophysical report suggests a possibility that this conductor may be caused by
nickel sulphide mineralisation at depth and it is likely that the Company will
also test this target as part of a Stage 2 drill programme at Haneti.
Planned Stage 2 work at Haneti
The initial Stage 2 exploration activity at Haneti will comprise the
implementation of a diamond drill programme to test the drill targets identified
in the Spectral geophysical report at Mwaka and Mihanza. Exploration for nickel
sulphide targets and gold will take priority over nickel laterite exploration
during during Stage 2. Should the planned drilling at Mwaka and Mihanza
encounter nickel sulphide mineralisation, it is planned to implement an airborne
EM survey over the entire Haneti ultramafic belt in order to generate more drill
targets for this type of mineralisation. Prospecting, rock sampling and mapping
will continue in the southern and western parts of the Haneti project during
Stage 2 where on-going artisanal mining indicates potential for the discovery of
significant greenstone related gold mineralisation.
Recent Developments
The Company`s recent announcement of the 8th May 2012 on the signing of a
Memorandum of Understanding to pursue a strategic joint venture with Brazilian
industrial conglomerate Votorantim for the further exploration of the Haneti
project represents an independent affirmation of the prospectivity of this area.
Contingent on the conclusion of a Joint Venture, Votorantim will be required to
spend up to GBP2.7M in exploration over a period of three years to earn a 50%
interest. This will allow the Company to accelerate exploration over this large
project for both nickel-PGMs and gold at minimum cost.
Morogoro South
Field exploration at Morogoro South focused on a regional geological structure,
the Ruvu Nappe which is associated with both artisanal alluvial and hard rock
mining at various locations along 45 km of its length. Kibo undertook regional
soil sampling across the central 28 km portion of the structure over which it
holds active PLs.
Soil sampling was carried out at 100 m stations on 8 E-W trending lines, 3 to 4
km apart and 9 km to 13 km in length. The sampling lines were orientated to cut
across the strike of the N- S trending Ruvu Nappe at wide spaced intervals to
target any gold mineralised zones that may be coincident with, or parallel to
the structure. A total of 922 samples including QC samples were submitted to ALS
labs in Mwanza (preparation) and onward to Johannesburg for 30 g gold fire assay
and multi-element analyses.
The majority of the gold values were at or below expected background values of 1
to 5 ppb. However within this population there are a number of anomalous values
up to a maximum of 156 ppb which occur in clusters of 1-3 consecutive sample
points. These provide 6 target areas for follow up sampling, prospecting and
geological mapping during Stage 2 exploration. Significantly, one of these gold
anomalies shows coincident anomalous geochemistry for arsenic, bismuth and
stibnite which are important gold pathfinder elements in some geological
terrains and should prove useful in follow up work and extension of regional
soil & stream sediment sampling surveys to other areas within the Morogoro South
tenements.
Planned Stage 2 work at Morogoro South
Near term Stage 2 exploration at Morogoro South will comprise detailed
evaluation of the anomalous gold-in-soil anomalies identified from the Stage 1
results by detailed infill soil sampling and geological prospecting, mapping and
rock sampling. Should drill targets emerge from this work, these will be tested
later in the Stage 2 work programme. Regional soil and stream sediment sampling
and geological prospecting, mapping and rock sampling surveys will be extended
to other PLs in the Morogoro South Block as they become active.
Morogoro North
Kibo`s Stage 1 exploration at Morogoro North comprised an extensive stream
sediment sampling survey for gold on the southern part of the exploration block
on PLs 6717/2010 and 6598/2010 around the villages of Gairo and Berega. This
area is hilly with a good drainage and the Company considered stream sediment
sampling to be as an efficient early stage exploration technique for this region
to resolve areas for more detailed follow up work. The survey encompassed an
area of about 200 km2 and was sampled at a density of 2-3 samples per km2 for a
total of 563 samples. Following an initial first pass survey and review of gold
results, follow up sampling was undertaken around some anomalous areas to
provide greater resolution of the anomalies.
97% of the samples show gold values in the range <1 to 20 ppb with the remaining
3% of the samples (16 samples) showing anomalous values in the ranges 20 -50 ppb
(8 samples) and >50 to 826 ppb (8 samples). These anomalous values with greater
than >20 ppb gold-in- stream provide 10 priority sub-areas for follow up work.
Planned Stage 2 work at Morogoro North
Regional stream sediment sampling has been successful at Morogoro North in
resolving 10 sub-areas for follow up work during Stage 2 exploration. Stage 2
work will include infill stream sampling, soil sampling, prospecting/rock
sampling and geological mapping over these areas. In addition to these
activities, the stream sediment sampling survey will be extended to other
licences in the Morogoro North block where the terrain is appropriate to this
type of early stage regional survey. Should drill targets emerge quickly from
this work, they will be tested later during Stage 2 exploration.
Review by Qualified Person
The information in this announcement that relates to exploration results,
mineral resources or ore reserves is based on information reviewed by Noel
O`Keeffe, PGeo who is a member of the Institute of Geologists of Ireland. Noel
O`Keeffe is also the Exploration Director of Kibo. Noel O`Keeffe has at least
five years experience within the sector which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a qualified person under the AIM Rules. Noel
O`Keeffe consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.
Enquiries
Louis Coetzee +27 (0)83 2606126 Kibo Mining plc Chief Executive Officer
Noel O`Keeffe +353 (0)91 865367 Kibo Mining plc Exploration Director
Stuart Laing +61 8 9480 2506 RFC Ambrian Nominated Adviser
Limited
Andreas +27 (0)83 4408365 River Group Corporate Adviser and
Lianos Designated Adviser (AltX)
Matthew +44 (0)207 7968829 Northland Capital Broker (Assistant Director,
Johnson Corporate Finance)
Nick Bealer +44 (0)207 7109612 Cornhill Capital Broker (Corporate Broking)
Ltd
Matt Beale +44 (0)7966 389196 Fortbridge Public Relations
General Background & Strategy
Kibo is a public company registered in Ireland (company number 451931). Its
registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower Hatch
Street, Dublin 2, Ireland. Kibo was established in early 2008 to explore and
develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27
April 2010 and AltX in South Africa on 30 May 2011.
The Board of Kibo is composed of experienced professionals spanning mineral
exploration, mine development, mining finance and financial control of public
companies. It is supported by well trained and motivated Tanzanian staff that
operates from Kibo`s exploration offices in Dar es Salaam and Mwanza.
The mineral assets of the Company comprise three existing and two newly acquired
projects in Tanzania - Haneti (nickel, platinoid elements and gold), Morogoro
(Gold) and Lake Victoria (Gold) which give Kibo access to over 18,000 km2 of
early stage exploration licences in Tanzania`s premier gold mining region, the
Lake Victoria Goldfield and within the newly emerging gold exploration regions
in eastern Tanzania.
The Company has recently also acquired, subject to certain suspensive closing
conditions and approvals, coal and uranium exploration projects as publicly
announced on 2 April 2012 in accordance with its multi-commodity exploration
strategy.
Kibo`s objective is to enhance Shareholder value through acquisition,
exploration and development of mineral assets in Tanzania. This objective will
be pursued primarily through active exploration, particularly drilling on its
current projects and by using the Company`s experience in Tanzania to acquire
further quality mineral projects on competitive terms that can be quickly
evaluated and taken to the next stage of development. Kibo will undertake
continual risk assessment of its projects and take whatever actions it believes
are necessary to ensure that these risks are mitigated.
Updates on the Company`s activities are regularly posted on its website
www.kibomining.com
London
Corporate and Designated Advisor
River Group
21 June 2012
Date: 21/06/2012 09:07:56 Supplied by www.sharenet.co.za
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