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KIBO MINING PLC - Update on Exploration Activities at Kibos Rukwa and Imweru Projects in Tanzania

Release Date: 19/11/2013 07:30
Code(s): KBO     PDF:  
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Update on Exploration Activities at Kibo’s Rukwa and Imweru Projects in Tanzania

    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: November 19, 2013

Update on Exploration Activities at Kibo’s Rukwa and Imweru Projects in Tanzania

•     Topographical survey of boreholes on the Rukwa Coal Resource completed.

•     Imweru Drill Programme 20% ahead of schedule and nearing completion.

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 announce the following progress on its Rukwa coal and Imweru gold
exploration projects :

Rukwa

A topographical survey of the Rukwa coal resource drill collars was completed on 15
November 2013. The results of this survey will be used in the preparation of a new resource
statement for Rukwa where it is anticipated that they will allow a large part of the existing
Indicated Resource to be upgraded to the Measured Resource under JORC. Re-statement of the
resource in the “Measured” category is necessary in preparation for the commencement of the
next stage of development of the Rukwa Coal to Power Project (RCPP) and marks
commencement of the first phase of the feasibility studies that are planned for the RCPP during
2014. The new Resource Statement is expected early in Q1 of 2014.



Imweru

The recently announced drill program on Kibo’s newly acquired Imweru project is now nearing
completion. The exploration drill programme was announced on October 28, 2013, commenced
drilling on November 01, 2013 and has since commencement, maintained an execution rate
well ahead of schedule.

To date the average daily drilling rate stands at 109 m, which is well above the planned 75 m
p/d for Reverse Circulation drilling (RC), with the daily Diamond Drill (DD) rate averaging
70m p/d compared with the planned rate of 40m p/d. The current status of the Imweru
programme can be summarized as follows:

•     DD-drilling was completed within 7 days, well ahead of the scheduled completion date,
      with a total of 488 m drilled versus the planned 450 m.

•     RC-drilling is currently 20% ahead of schedule with 65% of the program completed at this
      stage (1850 m have been drilled to date versus the 1275 m planned). At the current rate, and
      subject to favorable weather conditions, it is estimated that the project will reach completion
      during the first week of December 2013.

First samples from the drill programme were submitted to the analyses laboratory on November
11, 2013 and the final results for the entire project, are expected during the second week of
January 2014, assuming no delays at the analyses laboratory over the next 8 weeks. A site visit
by the appointed independent Competent Person (CP) was also completed on November 18,
2013.

The Imweru drill programme intends to improve the current resource statement on the project
both qualitatively and quantitatively as a prerequisite to advancing to the scoping study stage as
soon as possible. A second stage drill programme has already been planned for the project and
will be implemented early in 2014 contingent on satisfactory results being received from the
current programme. Prior to this drilling phase the project has a NI 43-101 compliant Inferred
Resource of 629,600 oz. of gold.



    Louis Coetzee, CEO of the Company, commented today:

    “The Company is impressed with the progress on Rukwa and Imweru this far.

    The Rukwa survey will allow an independent restatement of the resource, with the expectation
    that a large portion thereof will be classified as “Measured”. This survey marks the
    beginning of the feasibility studies for the RCPP as announced earlier and the first step that
    can be viewed as the actual start of development work on the RCPP.

    Imweru is currently delivering exciting new observations of mineralization and quartz veins,
    which bodes well for the phase 2 drill programme, planned for as early as possible in FY
    2014. The current Imweru programme also, once again, highlighted Kibo’s operational
    readiness and capacity to plan, implement and execute exploration programmes very
    successfully”
Contacts

  Louis Coetzee        +27 (0)83 2606126       Kibo Mining       Chief Executive Officer
                                                   plc
 Andreas Lianos        +27 (0)83 4408365       River Group      Corporate and Designated
                                                                        Adviser
    Jon Belliss       +44 (0) 20 3216 2630        XCAP                   Broker
   Stuart Laing         +61 8 94802500             RFC         Nominated Adviser on AIM
                                                 Ambrian
                                                 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 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).


    TABLE1: IMWERU MINERAL RESOURCE SUMMARY–BASECASE*
         Category        Measured Resource      Indicated Resource    Inferred Resource
        Resource (t)              -                       -              17,649,900
        Grade (g/t)               -                       -               1.11
      Grade (oz/ton)              -                       -               0.032
      Total Gold (oz)             -                       -               629,600
  *Numbers are rounded. Composites capped at 25g/t gold. Cut-off grade of 0.5g/t gold
  based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM
  definitions were followed for Mineral Resources.
    TABLE2:LUBANDO MINERALRESOURCE SUMMARY–BASECASE*
                                          East Zone                  East Zone
       Category              West Zone      South      East Zone       North        Total
                                                         Mid

     Measured
     Measured Resource        107,900       4,880        16,900       54,440      184,150
     Grade (g/t)               1.6          2.5          1.72          2.4         1.9
     Total Gold (oz)           5,900        400           95          4,340       11,500

      Indicated Resource
     Indicated Resource       280,710      18,330   61,000       149,350     509,420
     Grade (g/t)               1.6          2.2     1.89          2.7         1.9
     Total Gold (oz)          14,500       1,300    3,70         13,120      32,600
     Inferred Resource
     Total Resource (t)      1,090,000     65,470  209,340       535,330    1,900,140
     Grade (g/t)               1.2          1.5     3.34          3.1         2.0
     Total Gold (oz)          44,550       3,300    22,500       53,900      124,200
  *Numbers are rounded. Composites capped at10.85g/tgold. Cut-off grade of 0.5g/t gold
  based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM
  definitions were followed for Mineral Resources.

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 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 Rukwa project is substantially more advanced than Kibo’s existing 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.
RUKWA COAL RESOURCE SUMMARY- GEMECS (Pty) Ltd
                    SEAM          NI 43-101                                  IN SITU
SEAM             THICKNESS          CLASS                                 MILLION TONS
S4                   1.14          Indicated                                   2.17
S3U                  2.04          Indicated                                   6.92
S3L                   2.3          Indicated                                  12.63
S2                   3.45          Indicated                                  23.43
S1U                  2.48          Indicated                                   7.34
S1L                  2.92          Indicated                                   17.4
S0                   1.08          Indicated                                   1.44
Total Indicated
Resources                                                                       71.34
S4                   1.31           Inferred                                    1.38
S3U                  2.24           Inferred                                    2.94
S3L                  2.27           Inferred                                    3.86
S2                   3.42           Inferred                                    7.94
S1U                  2.05           Inferred                                     6.5
S1L                  3.15           Inferred                                    12.83
S0                   1.06           Inferred                                     2.6
Total Inferred
Resources                                                                       38.05

TOTAL
RESOURCES                                                                       109.39


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.

Review by Qualified Person

The information in this announcement that relates to the Imweru and Lubando mineral
resources is taken from reports titled “Technical Report on the Imweru property (Updated),
Mwanza, Tanzania” dated March 1, 2010 and “Technical Report on the Lubando property,
Mwanza, Tanzania” dated 31st August 2009” (the “Reports”) Both Reports are NI 43-101
compliant and were prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier
C.P.G., P.Eng. Market Director for EBA Engineering Consultants Ltd and a Senior Mining
Consultant. Mr. Fier is registered as a Certified Professional Geologist with the American
Institute of Professional Geologists, Registration No 10062, and a professional Engineer in
British Columbia, Canada Registration No. 135165. He has extensive experience in the
evaluation and reporting of Archaean Gold projects and is a “Qualified Person” for reporting
gold resources to the NI 43-101 Standard. The information in this announcement that relates
to the Rukwa coal resource is taken from a report “Independent Technical Report for the
Rukwa Coal Project, Mbeya Region, United Republic of Tanzania” dated 19th April 2012 by
CD van Niekerk Director and Principal Geologist with the firm GEMECS (Pty) Ltd. Mr van
Niekerk is a Professional Natural Scientist with the South African Council for Natural
Scientific Professions (SACNASP), Registration No. 400066/98 and a Fellow Member of the
Geological Society of South Africa. He has relevant experience and technical qualifications to
be a “Qualified Person” for reporting coal resources to the NI 43-101 Standard.The Company’s
Exploration Director, Noel O’Keeffe has also reviewed the technical reports and the references
to them in this announcement.

Johannesburg
19 November 2013

Corporate and Designated Adviser
River Group

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