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KIBO MINING PLC - Preliminary Economic Assessment Update Imweru Gold Project

Release Date: 17/12/2014 07:05
Code(s): KBO     PDF:  
Wrap Text
Preliminary Economic Assessment Update – Imweru Gold Project

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")

16 December 2014

Preliminary Economic Assessment Update - Imweru Gold Project

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed 
mineral exploration and development company, is pleased to confirm that the Company has now 
received the final Preliminary Economic Assessment (PEA) Report in respect of the Imweru Gold 
Project.

Background

The Company's announcement of 14th October 2014 confirmed the commissioning of a Definitive 
Feasibility Study in respect of the Imweru Gold Project(the "Imweru DFS"), situated in the Lake 
Victoria Goldfields, Tanzania. The project is 90% owned by Kibo Mining plc with the remaining 
10% held by Barrick East Africa Exploration Limited. The Imweru DFS is being undertaken by 
Minxcon Projects and Stage 1 of the Imweru DFS is a PEA, the subject of the report now 
received. We would like to thank the team at Minxcon Projects for their hard work and 
professionalism in the timely delivery of this key report.

It is the Company's stated intention to secure the earliest possible value crystallisation through 
commercial development of its key projects, one of which is the Imweru Gold Project. At the 
point of commissioning the Imweru DFS, the Company had been able to confirm that in respect of 
the Imweru Project:

* there was sufficient JORC compliant gold Mineral Resources (550,000 total ounces) to 
  support early production;
* here was a high degree of confidence that additional exploration would add to the resource 
  inventory to supplement existing resources and extend prospective mine life;
* mineralisation appeared suitable for traditional processing methodologies and that feed ore 
  would be suitable for a variety of processing options; and
* substantial localised infrastructure exists, recognising the considerable gold exploration and 
  mining activities already undertaken in the region.

The PEA was intended to build on the work completed historically, and provide an indication as to 
the potential economic value of the greater Imweru gold project and notably, the cash flow early 
production could provide to the Company, with a view to assist the Company to become self-
funding at the earliest opportunity. It is therefore important to note that early production at Imweru 
Central is primarily aimed at providing funding support for the full production potential of the 
greater Imweru gold deposit and not Imweru Central only. 


PEA Report Overview

We are pleased to confirm that the findings from the PEA study are positive in terms of the 
objectives stated above and confirm, and in certain key respects exceed, the Company's 
expectations with regard to the inherent technical and commercial value of the project.  

Notably, the forecast free cash flow to be delivered by the project is expected to be sufficient to 
fund the future development of Imweru as well as ongoing exploration and development at the 
Company's remaining Lake Victoria Gold Projects. It could also potentially supplement funding at 
the Company's Haneti project, where there is considerable prospectivity for nickel sulphides, 
PGMs, gold, lithium and tantalum/niobium.

Detailed PEA Report Announcement to follow

We are currently undertaking a review of the PEA Report and will update shareholders as soon as 
possible detailing the key report findings and outlining the options available.

Louis Coetzee, CEO of Kibo Mining plc said "For some time we have stated our belief that the 
Kibo assets, both individually and collectively, have considerable value.  We have sought to 
confirm this belief through the commissioning of independent Competent Person's Reports, having 
recognised that without independent verification the market could not properly and fairly value 
the Company.  

We are therefore delighted that this PEA Report has delivered positive findings, particularly as it 
demonstrates we have a robust and attractive gold project in the Lake Victoria area, something 
which provides value for shareholders but which represents only one commodity of the four 
commodities in the Kibo asset portfolio and only one of the Company's seven gold projects.

Following our technical review and full report to shareholders on this PEA, our focus will be 
optimised commercialisation. The quality of the data and the technical findings thus far has 
provided various options as to how this project can be progressed, all of which have distinct 
advantages. 

We would also remind readers that the Company announced on 11th December 2014 receipt of the 
Power Pre-Feasibility Report for the Rukwa Coal to Power Project. Technical review of that 
report is in progress and we will be reporting in detail on the positive findings as soon as 
possible.  

Furthermore, we would also note that your company remains active in a number of additional 
areas including:

* Haneti geochemical work and partner discussions; 
* Due diligence completion and planning for the Joint Venture with Metal Tiger plc at the 
  Pinewood Uranium project;
* discussions to secure a partner for development of our Morogoro Gold Project.  

Therefore, alongside the significant developments at our Rukwa Coal to Power Project and our 
Imweru Gold Project, your company is pushing ahead in numerous areas and will report on each 
area as events transpire.

We recognise that extensive news is flowing out to market in this period. To assist the market's 
understanding of the Kibo asset portfolio we will release before year end an operational and 
strategic overview for the Company covering and summarising all areas of operations, current 
status and forward looking plans."

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
Abigail Wayne
+44 (0) 20 3693 1470
Hume Capital Securities Plc
Broker

Oliver Morse and Trinity McIntyre
+61 8 9480 2500
RFC Ambrian Limited
Nominated Adviser on AIM

Daniel Thöle
Lucinda Alderson
+44 (0) 203 772 2500
Bell Pottinger
Investor and Media Relations

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 (See Table 1 below), 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 is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-
Feasibility Study for Rukwa with initial findings to be released in the near term.

The Company also has extensive gold focused interests including Lake Victoria Goldfields and 
Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC 
compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 
43-101 compliant gold Mineral Resource at Lubando Project (See Table 3 below) in which the 
Company holds a 90% attributable interest. The Company is currently undertaking a Definitive 
Feasibility Study on its Imweru Project, with Preliminary Economic Assessment study findings 
to be released in the near term. 

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

Kibo Mining also holds the Pinewood (coal & uranium) project where the company has signed 
a MOU to enter into a 50/50 Exploration Joint Venture with Metal Tiger PLC.

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   

Technical data

Rukwa Mineral Resource
Table 1 below presents a table showing the Mineral Resource estimate for the Rukwa Coal Project. The 
table is taken from an NI 43 101-Compliant Report by GEMECS (Pty) Ltd dated April 2012.

Table 1
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 holds 100% of the Rukwa Mineral Resource



Imweru Mineral Resource
Table 2 below presents a table showing the Mineral Resource estimate for the Imweru  Project  at  a 
base case economic cut-off grade for the reporting of the resource  of  0.4 g/t. The table is taken from a 
JORC-Compliant Report by Tetra Tech EBA dated February 2014.

  Table 2

Area                      Material      Classification        Cut-off      Specific      Metric       Short Tons  Gold        Contained Gold                     
                            Type                               (g/t)        Gravity     Tonnes (t)                Grade 
                                                                                                                  (g/t)        Ounces (troy)

Central
                         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

                         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

East                       Total           Inferred            0.40          2.70     2,653,000     2,925,000    1.449          124,000


Imweru Property Total
                                           Indicated           0.4           2.77     2,732,000     3,012,000    1.168           103,000
                                            Inferred           0.4           2.79    12,222,000    13,473,000    1.137           447,000

                                           Combined 
                                           (inf+ind)           0.4           2.79    14,954,000     16,485,000   1.143           550,000
*Kibo holds 90% of the Imweru mineral resource            


*   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)


Lubando Mineral Resource 
Table 3 below presents a table showing the Mineral Resource estimate for the Lubando Project at a base 
case economic cut-off grade for the reporting of the resource of 0.5 g/t Au. The table is taken from an 
NI 43 101-Compliant Report by EBA Engineering Consultants Limited (now part Tetra Tech EBA) 
dated August 2009.

TABLE3: LUBANDO MINERAL RESOURCE SUMMARY - BASECASE*

Category                    West Zone     East Zone South     East Zone Mid      East Zone North        Total
Measured Resource

Measured Resource(t)        107,900           4,880             16,900               54,440            184,150
Grade(g/t)                    1.6             2.52               1.72                 2.48               1.95
Total Gold(oz)               5,900            400                 950                4,340              11,500


Indicated Resource

Indicated Resource(t)      280,710           18,330           61,000               149,350             509,420
Grade(g/t)                  1.6               2.23             1.89                  2.73               1.99
Total Gold(oz)            14,500             1,300             3,700                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              1.56              3.34                3.13               2.03
Total Gold(oz)             44,550           3,300             22,500              53,900            124,200

* Kibo holds 90% of the Lubando mineral Resource

* Numbers are rounded. Composites capped at 10.85g/t gold. Cut-off grade of 0.5 g/t gold based on a gold price of US$850/oz 
and assumed 100% metallurgical recovery.CIM definitions were followed for Mineral Resources.

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 and Lubando Project (and thus a 90% attributable 
interest in the Imweru and Lubando Mineral Resources shown in Table 2 and 3 above), 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. 

Review by Qualified Persons

The information in this announcement that relates to the Rukwa Coal Mineral Resource is taken from a 
report titled "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

Information in this announcement that relates to the Imweru Mineral Resource 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 Mineral 
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 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 in this announcement that relates to the Lubando Mineral Resources is taken from a report 
titled  "Technical Report on the Lubando property, Mwanza, Tanzania" dated 31st  August 2009" (the 
"Report") The  Report is NI 43-101 compliant and was 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. Fieris 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. 

The Company's Exploration Director, Noel O'Keeffe has reviewed the resource reports and the references 
to them in this announcement.



Johannesburg
16 December 2014
Corporate and Designated Adviser
River Group




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