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KIBO MINING PLC - Haneti Joint Venture Project Update: First Laboratory Results

Release Date: 09/09/2013 08:30
Code(s): KBO     PDF:  
Wrap Text
Haneti Joint Venture Project Update: First Laboratory Results

  
    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”)


    Dated: 9 September 2013




                Haneti Joint Venture Project Update: First Laboratory Results


      *   New Ni-PGM prospective ultramafic outcrops identified
      *   Preliminary soil samples results confirm Mihanza and Mwaka as initial priority drill
          targets
      *   Regional programme identified new ultramafic occurrences
      *   Initial soil sampling programme completed ahead of schedule
      *   Follow up soil sampling completed over new target areas identified from geological
          mapping
Kibo Mining (“Kibo” or the “Company”) (AIM: KIBO), (JSE: KBO), the Tanzania focused
mineral exploration and development company, is pleased to provide a further interim
operational update of its Tanzanian Haneti Joint Venture Project, which is being funded by its
joint venture partner, Votorantim Metais. This update reports on project activities for the
period since the last RNS, and ending August 31, 2013.
The current soil sampling and mapping work is focused on metamorphosed ultramafic rocks
which are targets for nickel, gold and platinum group metal element (“PGE”) mineralization.
Previous sampling and mapping programmes identified anomalous nickel and gold grades and
the current sampling programme is intended to provide additional detailed surface geochemical
data to support and confirm the final selection of locations for initial test drilling, in the
absence of sufficient surface geology that will normally aid in determining these decisions.
The discoveries of new ultramafic outcrops, the additional information gained from the
geological mapping programme and the latest geochemical soil sampling results have added
significantly to the understanding of the geology of the project. Specifically, at Mwaka and
Mihanza the latest soil geochemical results together with previous soil geochemical, trenching
and geophysical results have confirmed these prospects as initial priority drill targets.
 




Louis Coetzee, CEO of the Company, commented today:


“The Company is extremely pleased with the progress made to date. The project is well
managed and we are confident that the main objective of the sampling programme, i.e. gaining
an improved understanding of the geology in order to identify and prioritize drill targets, has
by and large been achieved. The final objective of the current programme after completion of
all field activities will be to recommend a detailed drill programme to test for mineralization.”

Additional Technical Information
This RNS reports on exploration results available since the previous interim update (RNS
dated 31 July 2013) and covers the period ending August 31, 2013. A highlight during the
period was the discovery of two previously unknown ultramafic outcrops – one at Mihanza
South and a second unnamed body 9 km northwest of Mindii from magnetic and satellite photo
interpretation. These provide further evidence of the continuity of the Ni-PGM prospective
ultramafic belt and provide new target areas for follow up sampling and possible drill target
definition.
Operationally, the sampling teams continue to show excellent productivity, collecting more
than the planned number of soil samples for the month and completing the planned sampling
program early in August, two months ahead of schedule. To date 2,428 soil samples have been
taken and submitted to the laboratory. In addition to soil sampling over existing targets at
Mwaka, Mihanza and Kwahemu, sampling has now been completed over newly generated
target areas at Mukulingu, Mitu, Ndolanti, Mihanza South and Igari Cheni.
Preliminary soil sampling results received for the Mihanza and Mwaka targets show
anomalous metal concentrations that are consistent with previous surveys. These new results
have provided further infill sampling and analytical results for an expanded element suite than
was previously available. This expanded soil geochemical database will greatly assist in
geological interpretation and the selection of drill hole locations. A summary of the soil results
for the most relevant elements for Ni-PGM and gold mineralization are discussed below.
High metal-in-soil values for nickel, chromium, cobalt, iron were reported over mapped
ultramafic lithologies at Mwaka and Mihanza with values of up to 10,000 ppm, 1,530 ppm,
306 ppm and 13.75% respectively. Copper values were up to 359 ppm and highest values
correlate well with high gold values on Mwaka Hill of up 0.294 ppm. Highest platinum and
palladium values (soils from selected sampling lines only analysed for these elements) were
0.038 ppm and 0.039 ppm respectively. The platinum and palladium values, while not
significantly anomalous are consistent with values previously obtained from sampling at
Mwaka.
High gold-in-soil values of up to 0.320 ppm were obtained on the south eastern side of
Mihanza and these will require further investigation. It is proposed to follow up with trenching
and sampling in this area. Preliminary inspection of the gold anomalous suggests that it may be
associated with quartz veining at the contact between metagabbros and ultramafic
serpentinites.
In addition to sampling and mapping on the known ultramafic belts east of Haneti, a regional
reconnaissance mapping, prospecting and sampling programme is in progress in order to
generate new Ni-PGM and gold targets on the project. To date new ultramafic occurrences
have been identified in the south of the project at Dulu and Gulali and these are currently being
mapped and sampled. The regional programme will continue to the end of September.
 




Review by qualified person

The information in this RNS 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 and is Kibo’s Exploration Director. Noel O’Keeffe has at
least five years experience within the sector which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which he is undertaking to qualify as a
qualified person. Noel O’Keeffe consents to the inclusion in the report of the matters based on
his information in the form and context in which it appears.



Contacts

 
    Louis Coetzee       +27 (0)83 2606126       Kibo Mining plc        Chief Executive Officer

    Andreas Lianos      +27 (0)83 4408365        River Group      Corporate Adviser and Designated
                                                                           Adviser on JSE
      Jon Belliss      +44 (0) 20 3216 2630        XCAP                       Broker
     Stuart Laing        +61 8 94802500          RFC Ambrian        Nominated Adviser on AIM
                                                   Limited
      Matt Beale        +44 (0)7966 389196        Fortbridge             Investor Relations


Updates on the Company’s activities are regularly posted on its website www.kibomining.com


General Background & Strategy

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East
Africa and was admitted to AIM in London on 27 April 2010 and AltX in Johannesburg on 30
May 2011. 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 competent and motivated a Tanzanian
staff that operates from Kibo's operations office in Dar es Salaam.

The mineral assets of the Company comprise five projects areas in Tanzania - Haneti (nickel,
PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal &
Uranium).

The Haneti project is the subject of a joint venture with Brazilian Votorantim Metais
Participações Ltda, a member of Votorantim Group. The Rukwa and Pinewood projects are
situated 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 Lake Victoria project covering a gold prospective licence portfolio in Tanzania’s premier
gold mining region, the Lake Victoria Goldfield, been recently enhanced by the addition of
two brownfield gold projects Imweu and Lubando. Both projects have NI 43-101 compliant
total gold resource of approximately 798,000 ounces (total of Measured, Indicated and
Inferred for both projects). These projects provide the Company with drill ready targets
supporting its objective to increase the size and quality of the existing resource in the short
term.

The Rukwa project is substantially more advanced than Kibo’s other exploration projects, with
a significant Mineral Resource of thermal coal already defined. The project enjoys strong
support expressed by the Tanzanian Government for the expedited development of a coal mine
and mine-mouth coal-fired power plant and which is further enhanced by the now formal
relationship between the Korean Government owned Korean East – West Power Co. Ltd.
(“EWP”) and Kibo. In this relationship the parties have entered into a formal MOU which
states the parties’ respective commitments towards the joint development of the Rukwa Coal
to Power Project (“RCPP”), where EWP will be responsible for developing and operating the
power generation side of the RCPP and Kibo will be responsible for developing and operating
the mining side of the RCPP.

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.

Johannesburg
9 September 2013

Corporate and Designated Adviser
River Group

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