Wrap Text
Interpretation and Evaluation of Imweru Exploration Results Delivers Further Strategic Options for Development
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”)
02 September 2014
Interpretation and Evaluation of Imweru Exploration Results Delivers Further
Strategic Options for Development of Imweru
Highlights
* Near term production may be possible from Imweru, subject to required feasibility work, and mine
planning
* Imweru holds sufficient existing JORC compliant gold resources to support production
* Confidence that additional exploration will add to the resource inventory
* Mineralisation appears suitable for traditional processing methodologies
Kibo Mining plc (“Kibo” or the “Company”) , the mineral exploration and development company focused
on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce an update for shareholders
with regard to the Imweru project, the Company's flagship gold project within the Lake Victoria Goldfields
region of Tanzania.
In line with previous announcements, the Company's principal operational focus during recent months has
been the progression of the Rukwa Coal to Power project and negotiations with a strategic partner for that
project. Matters pertaining thereto continue to progress, as stated in the last market update dated 21 August
2014.
The progress at Rukwa has not been the only area of development within the Company with active, cost
effective work being undertaken to further assess and evaluate all the Company's gold, nickel, coal and
uranium project portfolios. In particular, considerable internal review work has been undertaken to evaluate
the Company's flagship Imweru gold project, in the Lake Victoria Goldfields. Imweru currently has a JORC
compliant gold resource of 550,000 ounces (495,000 ounces currently attributable to Kibo). See Tables 1
and 2 below for Technical Detail.
Kibo recognises that the market, and those with a commercial interest in the type of project that Imweru
represents, are keen to see the project developed in a manner that enables the earliest effective
commercialisation.
Consistent with the Company’s strategy, Kibo is also keen to see commercial development of its projects,
whether by way of the Company owning and operating producing assets, or by disposal of assets on
favourable terms. The Company also recognises that whether the ultimate direction is production or sale,
commercialisation of interests moves Kibo toward self-financing status, thus reducing reliance on the
market for financing of activities.
Kibo’s recent work has therefore concentrated on a full internal review of historic Imweru exploration data
to identify the optimal route for further development. This internal review, which is ongoing, has been
undertaken by the Company and validated by two independent technical consultants which confirm the
Company’s review findings.
The review has concluded that the exploration work undertaken to date and the resource data gathered from
this work demonstrate the potential viability of early gold production from the Imweru project.
The review has demonstrated the following key elements for the Imweru Project:
* mweru holds sufficient existing JORC compliant gold resources to support production.
* There is a high degree of confidence that additional exploration will add to the resource inventory to
supplement existing resources and extend prospective mine life.
* Mineralisation appears suitable for traditional processing methodologies and that feed ore would be
suitable for a variety of processing options.
* Significant localised infrastructure exists, recognising the considerable quantity of gold exploration
and mining activities already undertaken in the region.
Subject to necessary feasibility work, and mine planning, it may be possible to produce gold from
Imweru in the near term.
As indicated above, Kibo has a number of value crystallisation options for the Imweru Project and we are
currently considering the optimal strategy, and will update shareholders as appropriate.
Whilst this strategic review continues the Company has already initiated a number of selective and cost
efficient work steps to further understand the mineralisation and the metallurgy thereof, which will be
required when optimising potential future gold production activities. These steps form an integral part of
feasibility study work that ordinarily is undertaken before mine planning can be finalised.
Louis Coetzee CEO of Kibo Mining said: "The board of Kibo Mining have full confidence in the potential of
the Imweru Project which was acquired in 2013.
The board are delighted with the review findings and notably that this resource potentially could be
accelerated into early production, with the significant value generation that this would deliver to the
Company and its shareholders. Kibo intends to report regularly with regard to continuing developments at
Imweru, alongside news from Rukwa, as we move to value crystallisation at the Coal to Power project."
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 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) 203 772 250
Technical data
Table 1 below presents a table showing the 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 for the Imweru Project. 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)
(g/t) (g/t)
Laterite Indicated 0.40 2.50 131,000 144,000 1.785 8,000
Central
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
Laterite Inferred 0.40 2.50 685,000 755,000 1.317 29,000
Central
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
East Total Inferred 0.40 2.70 2,653,000 2,925,000 1.449 124,000
Indicated 0.4 2.77 2,732,000 3,012,000 1.168 103,000
Imweru Property Inferred 0.4 2.79 12,222,000 13,473,000 1.137 447,000
Total Combined
0.4 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 at which point they have to contribute or be diluted 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 0.4 2,732,000 1.168 103,000 90% 92,700
Imweru Property Inferred 0.4 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)
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
02 September 2014
Corporate and Designated Adviser
River Group
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