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KIBO MINING PLC - Updates on Progress with Rukwa Coal to Power Project (RCPP) Definitive Mining Feasibility Study (DFS)

Release Date: 21/08/2014 09:30
Code(s): KBO     PDF:  
Wrap Text
Updates on Progress with Rukwa Coal to Power Project (“RCPP”) Definitive Mining Feasibility Study (“DFS”)

  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”)


  21 August 2014



 Updates on Progress with Rukwa Coal to Power Project (“RCPP”) Definitive Mining
 Feasibility Study (“DFS”)

         * Phase 1 of Stage 1 of the DFS fully underway;

         * Initial benchmarks met;

         * Discussions on power coal and connection agreements progressing;

  The initial focus of the DFS was to test the key benchmark assumptions that will determine the
  economic viability of the Rukwa coal mine, as a long-term reliable coal supplier to the planned
  300MW mine mouth Rukwa Power Station. To date the following key benchmark assumptions
  have been subjected to a first pass assessment and delivered positive results, justifying further
  definitive feasibility work:

           * Excellent potential to mine the Rukwa deposit successfully and economically, based
           on current coal quantity and quality;
           * Suitable calorific values to match the fuel requirements for the planned Rukwa Power
           Plant;
           * Acceptable ash and volatile matter content;
           * Early principle decision that it will not be necessary to subject the coal feed to the
           Rukwa Power Plant to a washing process. (A final decision in this regard will follow
           upon completion of advanced feasibility work);
           * Sufficient coal in the current Mineral Resource, to sustain the Rukwa Power Plant for
           a period of up to 40 years.

 Louis Coetzee, CEO of Kibo Mining, said: “We are pleased with the positive progress and
 outcomes on the Rukwa DFS to date. It is important to note that the above results represent the findings
 from early assessments. The early DFS outcomes, referred to above, are also providing valuable support
 to the discussions on the finalization of the Heads of Terms for the Power Purchase Agreement, Grid
 Connection Agreement and Coal Sale Agreement.

These initial results bode well for a successful outcome from the DFS and we are confident of continued
positive results as the studies continue.”
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 3693 1470      Hume Capital      Broker
Abigail Wayne                                  Securities Plc
Oliver Morse         +61 8 94802500            RFC Ambrian       Nominated Adviser on AIM
Trinity McIntyre     +61 8 94802500            Limited
Daniel Thöle         +44 (0) 203 772 2500      Bell Pottinger    Investor and Media Relations
Lydia Eades          +44 (0) 203 772 2500




Kibo Mining - Notes to editors


Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The
Company is focused on exploration and development of mineral projects in Tanzania, and
controls one of Tanzania’s largest mineral right portfolios. Tanzania provides a secure and
stable operating environment for the mineral resource industry and Kibo Mining therein.


Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant
defined resource, and is developing a 250-350MW mouth-of-mine thermal power station with
an established management team that includes Standard Bank as Financial Advisor.


Kibo also holds the Haneti Licence on which the latest technical report confirms prospectivity
for nickel, PGMs, gold and strategic metals.


The Company also has extensive gold focused interests including Lake Victoria Goldfields and
Morogoro projects. At Lake Victoria, the Company has projects with a substantial existing
JORC compliant gold resource and is seeking to materially increase this resource through
exploration of known extensions to existing mineralisation.


Kibo Mining also holds the Pinewood (coal & uranium) projects.


The Company’s projects are located 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. The Company has a positive working
relationship with the Tanzanian government at local, regional and national levels and works
hard to maintain positive relationships with all communities where company interests are held.
The Company recognises the potential to enhance the quality of life and opportunity for
Tanzanian citizens through careful development of its projects.


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




Johannesburg
21 August 2014
Corporate and Designated Adviser:
River Group

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