Wrap Text
Significant Anomaly Identified At Morogoro South Project
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”)
Significant Anomaly Identified at Morogoro South Project
Dated: 14 November 2012
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO, AltX: KBO) the multi
commodity exploration and development company focused on Tanzania, is pleased to
provide an exploration update. The Company has received results from its infill soil and
stream sediment sampling at the Morogoro North and Morogoro South projects in central and
south eastern Tanzania.
Highlights
- Numerous gold anomalies have been defined by the soil sampling programme located
above and adjacent to the Ruvu Nappe structure
- These anomalies are significant gold bearing targets that will be trench sampled in
early 2013 and drill tested later in the year
- One of these anomalies extends over 0.3km2, returned gold values up to 0.41g/t and
remains open to the South (Block A)
- A significant barite anomaly was also discovered during the soil sampling programme
Morogoro North
- In fill gold-in- stream sediment sampling results from PLs 6717/2010 and 6598/2010
at Morogoro North show low values.
Louis Coetzee CEO of Kibo commented:
“These encouraging results have confirmed our belief that the Morogoro licences have the
potential to contain a significant gold deposit. The Morogoro South licence covers a 15km
section of the Ruvu Nappe structure that has been demonstrated by this soil sampling
programme to be an important control on the gold mineralisation. With numerous targets
generated we look forward to reporting the results of an extensive trenching programme and
our planned maiden drill programme in 2013.”
While infill stream sediment sample gold results over PLs 6717/2010 and 6598/2010 are low,
these areas represent just a small part of the Morogoro North project and the company’s
sampling teams have already commenced sampling licences further north closer to the
Handeni gold district where significant exploration success has been achieved in recent years.
Kibo is optimistic that with its on-going systematic field exploration programmes over the
remainder of the Morogoro North project, more significant exploration results should be
forthcoming.
Operations Details
Introduction
Kibo completed a Stage 1 field exploration programme across all its projects during the first
quarter of 2012 and the results were reported in the Company’s operations update dated 21
June 2012. The results of a follow on programme at the Morogoro North and Morogoro
South projects are now available resulting from further infill soil and stream sediment
sampling undertaken by the Company’s field teams during the second and third quarters of
2012. The purpose of this infill sampling was to further resolve the encouraging gold values
reported from the earlier programme by increasing the density of sampling points around soil
and stream anomalous gold areas.
The following section describes in detail the recent exploration results. Maps to accompany
this section can be found under the “Projects” menu on the Company’s website
www.kibomining.com.
Morogoro South
Stage 1 exploration results identified six areas of anomalous gold-in-soil results from wide
spaced regional soil sampling lines. Eight rectangular in-fill sampling blocks were completed
over these six areas and the sampling details are shown on the table below.
Block Name Area (Km2) Sample Grid No of
Spacing (metres) Samples
A 0.9 50 X 100 209
B 0.7 50 X 100 161
C 0.7 50 X 100 151
D 0.5 50 X 100 120
E 0.4 50 X 100 99
F 0.7 50 X 100 165
G 0.5 50 X 100 121
H 0.6 50 X 100 148
Total 5 1,174
The results for each sampled block are discussed below.
Block A
Block A is located close to the northern border of PL 5625/2009 on the Ruvu Nappe, the key
gold prospective geological structure identified on the Morogoro South project. The infill
gold-in-soil results define a coherent N-S trending anomaly extending over the length of the
sampled area, up to 600 m in width and open-ended on its South side. The gold anomaly is
defined by values in the range 20 to 100 ppb with a maximum value of 414 ppb (0.414 g/t).
The gold anomaly is strongly associated with anomalous arsenic (in the range 50-100 ppm)
and has a weaker correlation with bismuth and antimony.
Block B
Block B is located in the northern part of PL 6541/2010 and was placed to follow up on a
single point regional anomaly of 92 ppb gold. The in-fill soil sample results do not amplify or
extend the anomaly significantly and just show some scattered low level single point values
in the 10 to 20 ppb gold range. The multi-element geochemical data does however define a
high barite anomaly over the sampled areas defined on values in the range 1,000 to 6,000
ppm. The significance of this high barite remains to be evaluated and will be followed up
during the next field programme.
Block C
Block C occurs on PL 5585/2009 and was positioned over three consecutive gold values in
the range 20 to 50 ppb along a regional sample line from Stage 1 exploration. The infill
results were disappointing and did not reproduce or extend the previously returned gold-in-
soil values apart from a few scattered < 20 ppb values. Low level nickel anomalism from the
mult-element geochemistry most likely reflects background values from basic gneisses which
form the bedrock over the sampled area.
Block D
Block D is located 2.7 km south of Block A within PL 5625/2009 further south along the
Ruvu Nappe. It was sampled to follow up on some low level 10-30 ppb gold values from
Stage 1 exploration. The infill results do amplify the earlier anomaly and define a NNW-SSE
trending low level anomaly over the 1 km length of the sampled block. Gold values are
generally in the range 10-50 ppb with one maximum value of 229 ppb at the northern end of
the grid. While the gold-in-soil values are not as high or as extensive as in Block A, they are
significant as they indicate continued gold anomalism in this area further south along the
Ruvu Nappe. Similar to Block A, there is also an arsenic association with the gold anomaly
although it is less well developed with a maximum value of 40 ppb.
Block E
Block E is located 2.2 km SSW of Block D within PL 5625/2009 and 4.5 km west of the
main Ruvu Nappe thrust zone. It was placed to follow up on a singular regional gold anomaly
of 33 ppb Au from Stage 1 exploration. The results were disappointing and did not replicate
or extend the earlier anomaly. Some weak anomalism from the multi-element geochemistry
in barite, nickel, zinc and manganese most likely reflects background values of bedrock.
Block F
Block F is located in the southern part of PL 6541/10 and is located further south along the
Ruvu Nappe about 5 km SE of Block D. It was sampled to follow up on four consecutive
regional gold values of 16,10,73 and 139 ppb gold from Stage 1 regional sampling. The infill
results confirm and extend this anomaly as a NW-SE trending low level anomaly parallel to
the strike of the rocks. However, gold values are generally low, in the range 10-20 ppb with a
maximum single point value of 100 ppb. Although the gold anomaly is defined on low gold
values, its location along the Ruvu structure warrants further investigation.
Block G
Block G is located 1.4 km East of Block F and was placed to follow up on a singular regional
gold anomaly of 45 ppb Au from Stage 1 exploration. The infill Au results confirm a low
level anomalous area trending NW-SE along the 1 km length of the sampled area. The
anomaly is defined by values in the 10 ppb to 30 ppb range. The multi-element geochem data
shows a moderate well defined NW-SE trending Cu anomaly with values in the range 100-
300 ppm and this will require further field investigation.
Block H
Block H is located 0.5 km west of Block B within the northwestern part of PL 6541/2010
and was sampled to follow up on four consecutive gold values of 56,57,70 and 71 ppb on a
regional sample line from Stage 1 exploration. The infill soil results for gold were low and
did not reproduce or extend the previously returned regional gold-in-soil values. The high Ba
geochemistry observed in Block B is evident here again and one sample on the western edge
of the grid returned a value in excess of >10,000 ppm (the upper detection limit value of the
analyses method). When extended towards Block B, this high Ba geochemistry appears to
define a NE-SW trending zone which provides a priority area for further investigation.
Morogoro North
Based on Stage 1 exploration results , 10 regional gold-in-stream anomalies with values > 20
ppb were identified for follow up detailed infill sampling over PL 6717/2010 and 6598/2010.
(the Berega and Gairo Blocks). A total of 441 infill samples stream sediment samples were
collected during the in fill sampling programme.
The infill stream sediment sample results are low and do not expand the anomalies generated
from the regional sampling. Only 11 of the 441 samples returned gold values in excess of 10
ppb with maximum values of 181 ppb. The results over PL 6717/2010, where most sampling
was carried out, were particularly poor while the better results are located on PL 6598/2010.
In general, the low level and predominantly single point value occurrences of the anomalous
gold- in-stream sediment results does not appear to indicate potential for significant gold
mineralisation on these licences and they will now be revaluated to ascertain if further work
is warranted. The areas represent less than 5% of the total Morogoro North project portfolio
and the Company’s field teams have already commenced sampling programmes on licences
further north towards the Handeni area where significant gold discovery success has been
achieved by other companies and small scale miners in recent years. Results from these
programmes will be reported when the results are available.
Conclusions and next exploration step.
The Company is very pleased with the emerging results from exploration work at Morogoro
South whichclearly demonstrates the Ruvu Nappe as the primary geological target for gold
discovery in the region. Kibo has successfully delineated a coherent gold soil anomaly on
Block A with multi-element associations which it anticipates will provide its first drill target
in the area. Significantly, this anomaly is open-ended to the South and it appears to be
traceable again on Blocks D & F, albeit with weaker gold-in-soil geochemistry following the
mapped sole thrust zone of the Ruvu Nappe over a length of 15 kilometres. The forward
exploration programme in the area will comprise focused surface exploration along this zone
with continued detailed infill soil sampling, mapping, ground geophysics and trenching.
Initial work will focus on Block A where an early drill target appears to be emerging and the
next step in this will likely be trenching and sampling over the anomaly in order to confirm
bedrock gold mineralisation and assist with drill planning. The association of gold with
arsenic, bismuth and antimony and more subtle associations with other elements from the
multi-element soil sampling results may prove an important geochemical exploration tool in
this area.
The gold-in-stream sediment results from PL 6717/2010 and 6598/2010 were disappointing
and these areas are now being re-evaluated. The surveyed areas represent just a small region
at the southern end of the Morogoro North project which comprises approximately 4,000 km2
of tenements extending towards the gold prolific Handeni region further North. The
company’s exploration teams have already commenced first-pass sampling on a number of
these areas following issue as Prospecting Licences during the second half of 2012.
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.
All soil samples were submitted to ALS Chemex preparatory laboratory in Mwanza,
Tanzania where they were dried and screened to 180 microns. Pulps of 50 grams were sent to
ALS Chemex analytical laboratory in Johannesburg. Analyses for gold was by fire assay
with an ICP-AES finish (detection limits of 0.001 – 10ppm). Mult-element analyses (semi-
quantitative) was by acid digestion and either an ICP- MS or ICP-AES finish. Stream
sediment samples were prepared in the field by wet sieving approximately 20 kg of sample
material to obtain a less than or equal to 180 micron fraction. Approximately 200 gram
samples of this material were dried, packaged and dispatched to to ALS Chemex preparatory
laboratory in Mwanza, Tanzania where they were pulverised and pulps of 50 grams sent to
ALS Chemex analytical laboratory in Johannesburg. Analyses for gold was by fire assay
with an ICP-AES finish (detection limits of 0.001 – 10 ppm).
Approximately 5% QA/QC samples were submitted as part of the sample stream and review
of the results found that sample results were reported to acceptable standards by the
laboratory.
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 Company suspended itself from AIM during the period 11 May to 14
August 2012 to facilitate two corporate acquisitions that significantly increased its mineral
assets in Tanzania. It was re-admitted to AIM on 15 August 2012 and shareholder approval
for the acquisitions was obtained the 6th September 2012 at an EGM.
The Board of Kibo is composed of professionals whose experience include mineral
exploration, mine development, mining finance, tax, law, mergers and acquisitions, and
financial control of public companies. It is supported by a competent and motivated
Tanzanian staff that operates from Kibo's operations office in Dar es Salaam.
The mineral assets of the Company now comprise five projects in Tanzania - Haneti (nickel,
PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal
& Uranium) which give Kibo access to 38,000 km2 of early stage exploration licences in
Tanzania's premier gold mining region, the Lake Victoria Goldfield, within the emerging
gold exploration regions in eastern Tanzania and uranium & coal regions in south-western
Tanzania.
The acquisitions of Mzuri Energy and Mayborn have added the advanced Rukwa thermal
coal project and the Pinewood uranium exploration project to Kibo’s portfolio of mineral
projects in Tanzania.
The Rukwa and Pinewood projects will provide Kibo shareholders with exposure to an
attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated
within and close to the Mtwara Corridor, an area where the Tanzanian Government has
committed to significant infrastructure development and which has seen recent multi-million
dollar investment in coal and coal-fired power stations and uranium exploration.
The Rukwa project is substantially more advanced than Kibo’s existing exploration projects,
with a significant Mineral Resource of thermal coal already defined. This provides nearer
term development and commercialisation potential, complementing the earlier stage existing
projects held by Kibo. This is further supported by the memorandum of understanding that
has already been entered into with a major Asian conglomerate for the development of a coal
mine and mine-mouth coal-fired power plant based on the Rukwa project.
In addition, the Pinewood project encompasses a significant ground holding of prospective
Karoo sequence sedimentary rocks. These sediments are attracting considerable interest from
international companies exploring for uranium and coal mineralisation following some
notable discoveries in recent years.
Kibo's objective is to build shareholder value in a sustainable manner. This objective will be
pursued primarily through active exploration of its own projects and by using the Company's
experience in Tanzania to acquire attractive exploration and development assets on
competitive terms that can be moved swiftly up the value curve by using the company’s own
skills base whilst also seeking to benefit from strategic collaborative relationships with
industry leaders who have special skills and competencies within their chosen fields of focus.
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
Johannesburg
14 November 2012
Corporate and Designated Adviser
River Group
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