To view the PDF file, sign up for a MySharenet subscription.

KIBO MINING PLC - Interpretation and Evaluation of Imweru Exploration Results Delivers Further Strategic Options for Development

Release Date: 02/09/2014 09:30
Code(s): KBO     PDF:  
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

Date: 02/09/2014 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story