Wrap Text
Technical Report on the Imweru Gold Project Confirms Resource Upside Potential
Kibo Mining Plc
(Incorporated in Ireland)
Registration Number: 451931
(External registration number: 2011/007371/10)
Share code on the JSE: KBO
Share code on the AIM: KIBO
ISIN: IE00B61XQX41
(“Kibo” or the “Company”)
February 24th, 2014
Technical Report on the Imweru Gold Project Confirms Resource Upside Potential
Highlights
• Independent JORC-compliant resource report on the Imweru Gold Project received
• Report includes a revised JORC-compliant resource estimate reflecting recent drilling results and updated
economic and geologic factors
• Significantly improved confidence in the geological model and the resource base
• Confirmation of potential expansion of resource base through further drill programmes
• High priority drill targets identified on regional ground holding
• Recommended two phase work program incorporating further resource definition drilling, testing of the
priority regional targets and preliminary scoping study work
Kibo Mining plc (“Kibo” or the “Company”) , the mineral exploration and development company focused
on gold, nickel, coal and uranium projects in Tanzania, has received an independent JORC-compliant
resource report (“the Report”) for its Imweru project, located in the prolific Lake Victoria
Goldfields of northern Tanzania. The Report incorporates the results from the Company’s recently
announced Phase 1 drilling results at Imweru (refer to previous RNS dated 14 January 2014). The Report
was prepared by Canadian consultancy group Tetra Tech EBA on behalf of the Company, and
contains the following key data:
• 39% increase in total estimated combined Indicated and Inferred gold resource ounces to 426,000 oz
(12.3 million tonnes at 1.08 g/t, 0.4 g/t cut-off) over the previous estimate for the Imweru Central
Mineralised Zone (“ICMZ”) where the recent drilling was carried out
• 24% of the 426,000 oz newly estimated total gold resource at IMCZ is now categorised in the higher
confidence Indicated category, with the remaining 323,000 oz. (9.6 million tonnes at 1.05 g/t, 0.4 g/t
cut-off) in the Inferred category
• Total estimated Indicated and Inferred gold resource at Imweru now stands at 550,000 oz. (15.0
million tonnes at 1.14 g/t, 0.4 g/t cut-off)
• Improved understanding of the shear hosted gold mineralisation at Imweru. Phase 1 drilling highlights
significant potential to increase the quantity and quality of the resource
• Additional high priority gold drill targets identified from review of the Company’s extended ground
holding in the Geita region
Louis Coetzee, C.E.O. of Kibo Mining, commented:
“We are delighted to announce receipt of this report which confirms our previous statement that the drill
results from Imweru exceeded our expectations. This will allow Kibo to implement a focussed and specialized
exploration campaign on specific targets at Imweru to effectively enhance its resource. We are confident
moving into the next phase of the project and its near term commercialization. The independent recognition
of high quality drill targets within the Kibo ground holdings in the Geita region bodes well for our strategy
to build a significant mineable gold resource inventory in this region, close to existing gold mining
infrastructure. I look forward to providing further updates in due course.”
Kibo Mining - Notes to editors
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company was
admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company
is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania’s largest
mineral right portfolios, including the - Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold),
and Pinewood (Coal & Uranium) projects.
Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging
goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has
prioritised infrastructural development attracting significant recent investment in coal and uranium.
Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through
exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration
and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value
curve whilst benefitting from strategic relationships with industry leaders with special skills and
competencies within their chosen fields.
Updates on the Company’s activities are regularly posted on its website www.kibomining.com
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 Hume Capital Broker
Stuart Laing +61 8 94802500 RFC Ambrian Nominated Adviser on AIM
Limited
Daniel Thöle +44 (0) 207 8611606 Bell Pottinger Investor and Media Relations
Lydia Eades +44 (0) 207 8613126
Technical data
Table 1 below presents a table showing the new resource estimates in the JORC Code resource categories at
the base case economic cut-off grade for the reporting of the resource of 0.4 g/t Au. The table is taken from
the JORC-compliant Report by Tetra Tech EBA.
Table 1
Cut- Gold
Material Specific Metric Contained Gold
Area Classification off Short Tons Grade
Type Gravity Tonnes (t) Ounces (troy)
Central (g/t) (g/t)
Laterite Indicated 0.40 2.50 131,000 144,000 1.785 8,000
Saprolite Indicated 0.40 2.50 706,000 778,000 1.387 32,000
Bedrock Indicated 0.40 2.89 1,895,000 2,089,000 1.043 64,000
Total Indicated 0.40 2.77 2,732,000 3,012,000 1.168 103,000
Central Laterite Inferred 0.40 2.50 685,000 755,000 1.317 29,000
Saprolite Inferred 0.40 2.50 1,047,000 1,154,000 1.040 35,000
Bedrock Inferred 0.40 2.89 7,838,000 8,640,000 1.029 259,000
Total Inferred 0.40 2.82 9,569,000 10,548,000 1.051 323,000
Imweru Property
East Total Inferred 0.40 2.70 2,653,000 2,925,000 1.449 124,000
Indicated 0.40 2.77 2,732,000 3,012,000 1.168 103,000
Inferred 0.40 2.79 12,222,000 13,473,000 1.137 447,000
Total Combined 0.40 2.79 14,954,000 16,485,000 1.143 550,000
(inf+ind)
* Total estimates are rounded, based on composites capped at 26 g/t gold at Imweru Central and 25 g/t at Imweru East,
the cut-off grade is based on a gold price of US$1,200 and a 90% metallurgical recovery is assumed in calculation
of cut-off grade. A base case of 0.40 g/t has been selected.
** Classification of Mineral Resources incorporates the terms and definitions from the Australian Code for Reporting
of Exploration Results,Mineral Resources and Ore Reserves (JORC Code) published by the Joint Ore Reserve Committee (JORC)
Pursuant to the terms of an inherited agreement with Barrick East Africa Exploration LTD (BEAL), Kibo
currently has an effective 90% interest in the Imweru Project, with Barrick having a 10% carried interest up
to a decision to mine atr which point they have to contribute or dilute to a 2% net smelter royalty. BEAL
also has a first right of refusal pursuant to which they can buy the 90% interest in the project at an agreed
market related value after completion of a Bankable Feasibility Study. Kibo remains the operator of the
project.
Kibo’s 90% attributable interest in the Imweru Mineral Resources are shown in Table 2 below
Table 2
Cut- Gold
Area Material Classification Metric Contained % Gold Total Gold
off Grade
Type Tonnes (t) Gold Ounces Ounces
(g/t) (g/t)
Ounces attributable attributable
(troy) to Kibo to Kibo
Total Indicated 0.40 2,732,000 1.168 103,000 90% 92,700
Central
Total Inferred 0.40 9,569,000 1.051 323,000 90% 290,700
East
Total Inferred 0.40 2,653,000 1.449 124,000 90% 111,600
Indicated 0.40 2,732,000 1.168 103,000 90% 92,700
Imweru Property Inferred 0.40 12,222,000 1.137 447,000 90% 402,300
Total Combined
0.4 14,954,000 1.143 550,000 90% 495,000
(inf+ind)
Resource Estimate
Tetra Tech EBA (“Tetra Tech”), acting as independent geological consultants for the Company reviewed
the recent drilling results from the Imweru Central Mineralized Zone (ICMZ) together with historic drill
results from the Imweru East Mineralised Zone (IEMZ), to produce an updated resource model and estimate
for gold mineralisation at the Imweru project. In preparing its final report, Tetra Tech also reviewed the
previous resource report titled “Technical Report on the Imweru property (Updated), Mwanza, Tanzania”
dated March 1, 2010. This report was NI 43-101 compliant and was prepared for Great Basin Gold Rusaf
Gold Limited by EBA Engineering Consultants Ltd (now part of Tetra Tech EBA).
The updated resource estimate (total of Indicated and Inferred resource) at the ICMZ shows an increase
from 10,858,724 tonnes at 0.87 g/t (305,779 oz.) to 9,249,000 tonnes at 1.29 g/t (383,000 oz.) of Au at a
comparable cut-off grade of 0.5 g/t. representing a 25% increase in gold ounces and a 48% in grade over the
previous estimate. At the new base case economic cut-off grade at 0.4 g/t based on a gold price of $1,200
per oz (0.5 g/ cut-off grade and $750 per oz and were used in the previous estimate), the estimated resource
for the ICMZ is 12,301,000 tonnes at 1.076 g/t (426,000 oz.) which represents an overall 39% increase in
resource ounces from the previous estimate. Additionally, 103,000 oz of this new resource of 426,000 oz is
classified in the Indicated category with the remaining 323,000 in the Inferred category.
The IEMZ did not receive any additional drilling during the recent Phase 1 drill programme and the
previously reported resource estimate at the IEMZ of 6,791,174 tonnes at 1.48 g/t (323,806 oz) is being
restated. The I E M Z w a s restated using the existing block model (Fier, 2010) reflecting an adjustment
to a lower cut-off for gold grade, from 0.5 g/t to 0.4 g/t and to account for changes in mineral tenement
holdings in the period preceding Kibo’s acquisition of Imweru. The re-stated resource estimate at the
IEMZ zone is now 2,653,000 tonnes of Inferred resource at 1.449 g/t (124,500 oz). The IEMZ restatement
also took into account specific geological complexities in the IEMZ which could impact on the future
economic viability of the IEMZ as a standalone project.
Resource Modelling
The resource estimate was completed by Tetra Tech EBA using Dassault Systemes GEMS geological
modelling software using information from 801 drill holes, of which 94 were used to define mineralization
solids which constrained a block model. The data was interpolated into the block model using the inverse
distance weighted (IDW) method and was constrained by the mineralized solids. The Imweru mineralised
zones have been modelled as numerous, semi-continuous quartz and calcite filled brittle-ductile shear
structures that have variable strike direction with an overall average strike of approximately 080 degrees.
Numerous zones of continuous mineralization are noted to occur with within the main structures often
exhibiting oblique southwest-northeast trend to the overall strike. The shear zones have sub-vertical dip
extent fluctuating from a maximum of approximately 70 degrees to the south to 70 to the north. Local
variations in both the strike and dip in the vein orientations may be associated with local pinch and swelling
in the mineralized thickness. Diorite has been modelled as the predominant host to the shear structures, and
where it is unmineralized it is considered as waste material. Grade modelling for the Imweru Central zone
was generated from cross sectional interpretation using raw drill hole assay grades and a 0.2 g/t Au cut-off
threshold to create 3-dimensional triangulated mineralization solids. These mineralized solids were used as
the basis for calculation of internal 1 metre composites. Hard boundaries were used in the grade model
interpretation as these are suited to the nature of Archean gold shear and vein mineralization and are
supported from observations of drill core and RC cutting reviewed at Imweru Central. The mineralization
solids were limited to a minimum of 2 metres width. The deep weathering profile was modelled for Imweru
Central and broadly divided into the laterite and saprolite sequences based on logged drillhole lithologies.
Gold mineralization intersected by drilling within these units has been included in the model under the
assumption of mineral continuity from the unweathered bedrock horizon through the weathering profile.
Statistical analyses of specific gravity (S.G.) results from drill core measured as part of the core logging
process allowed the representative S.G. values shown in Table 1 to be allocated to the mineralised zones.
Review by Qualified Person
Information in this announcement that relates to the Imweru mineral resources is taken from the report titled
“Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent Persons
Report” dated February 17th 2014 (the “Report”). The Report states a JORC-compliant resource estimate
and was prepared for Kibo Mining plc by James Barr P.Geo. and Darryn Hitchcock P.Geo. Senior
Geologist and Geologist respectively with TetraTech EBA Ltd. Both Mr. Barr and Mr. Hitchcock are
registered as Certified Professional Geologists with Association of Professional Engineers and Geoscientists
of British Columbia a recognised professional organisation. Mr Barr as principal author responsible for the
Report has extensive experience in the evaluation and reporting of Archaean Gold projects and is a
“Qualified Person” for reporting gold resources to the JORC Standard. He consents to the inclusion in this
document of the matters based on his information in the form and context in which they appears. The
information has also been reviewed by Noel O’Keeffe, P.Geo, who is a Member of the Institute of
Geologists of Ireland. Noel O’Keeffe is Exploration Director of Kibo. Noel O’Keeffe has more than five
years relevant experience in the style of mineralisation and type of deposit under consideration.
Johannesburg
24th February 2014
Corporate and Designated Adviser
River Group
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