Wrap Text
Haneti Nickel Project- Positive Geochemical Update
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")
Dated: 27 January 2015
Haneti Nickel Project- Positive Geochemical Update
Highlights
* Mihanza Hill prospect ("Mihanza") soil anomaly proves to be consistent with that
expected for a significant Ni-Cu-PGE sulphide deposit
* Key parameters of anomaly indicate a signature with the potential to represent a significant
magmatic Ni-Cu sulphide source
* Characteristics of Mihanza Ni-Cu anomaly suggests a possible "chonolith" intrusion which
dramatically improves the probability of exploration success
* Mihanza results validates and independently confirms the Ni- Cu- PGM potential of the
Haneti project
Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX: KBO), the Tanzania focused
mineral exploration and development company, is pleased to announce that it has received an
independent geochemical interpretation report (the "Report") based on detailed analyses of its soil
and rock geochemical over the nickel-copper-PGM Haneti project in central Tanzania. The report
confirms the Mihanza area as a robust drill target with the potential to represent the surface
expression of a significant Ni-Cu-PGE style sulphide deposit at depth. The work was carried out
by consultant geochemist Dr. Nigel Brand Geoservices Pty Ltd of Perth Western Australia who
has global experience interpreting geochemical data over nickel sulphide style mineralisation
targets particularly in Australia and East Africa.
The geochemical analyses were primarily based on soil and rock sampling results from Kibo's
2013 exploration programme at Haneti. This geochemical study is the first component of desktop
based exploration data analyses that the Company is undertaking to extract maximum benefit from
available geological, geochemical and geophysical data for the project before it commences the
next phase of exploration which will include drilling of priority targets. Maps showing the location
of the prospects discussed below can be found on the Haneti project page of the Company's
website (www.kibomining.com).
Louis Coetzee, Chief Executive Officer of Kibo Mining plc, commented: " With this new report to
hand the case for further exploration and development at Haneti is compelling. We are delighted
that the geochemical work undertaken has highlighted the nickel sulphide potential at Haneti and
ratified historic exploration work and our own findings as previously announced. Various
additional work is underway to review the entire dataset from Haneti with a view to further
improving our understanding. We are now confidently moving forward to enable rapid visible
progress at Haneti, for the benefit of the company and our shareholders. Further updates will
follow."
Technical Discussion
Mihanza Prospect
The Report's most important finding is that the geochemical data for Mihanza strongly supports
the view that this is a robust drill target with the potential to represent the surface expression of a
significant Ni-Cu-PGE style sulphide deposit at depth. Mihanza together with Mwaka Hill
(Mwaka) were previously identified from the results of the Company's exploration surveys to
represent two well defined drill targets that it intends to test. In regard to the Mihanza target, the
principal conclusions from the Report are:
* Mihanza Hill forms a discrete, coherent and robust Ni-Cu-Cr (PGE) soil anomaly
supported by rock chip data. This anomaly has developed on the gentle slopes and is not
considered to be a function of a weathered topographic high
* When benchmarked against another soil data set collected over a mineralized ultramafic
complex in East Africa the Mihanza Hill data shows close similarities to the Cu and Cr
distribution, higher in Pd and Ni
* Mihanza Hill forms a discrete, coherent and robust nickel-copper-chromium soil anomaly,
supported by rock chip data
* The key parameters of this anomaly indicate a signature with the potential to represent a
significant magmatic Ni-Cu sulphide source
* Although limited the PGE soil data is anomalous and provides supporting evidence for a
sulphide association
* Gossanous rock chip samples lie within the zone of coincident Ni-Cu and strongly
support the potential for Ni-Cu sulphides at Mihanza Hill
* The Mihanza Hill anomaly is consistent with that expected for a significant Ni-Cu-PGE
sulphide deposit
* This is a drill ready target and the nature of the Mihanza Ni-Cu anomaly suggests a
possible chonolith intrusion (see below) which dramatically improves the probability of
exploration success
The suggestion of a "chonolith" intrusion as the potential host to sulphide mineralisation at Mihanza is
supported in the Report by the nature of the soil anomaly, the supporting rock sample data (grades of
up to 13% nickel and 2.3 grams per tonne combined platinum & palladium have been previously
reported at Mihanza) and its regional setting at the southeast edge of the Tanzanian Craton associated
with deep crustal lineaments. Significantly, "chonolith" intrusions are recognised as important hosts to
nickel sulphide mineralisation at Glencore/Barrick's Kabanga nickel sulphide deposit (~58 million
tonnes @ 2.6% Ni) located, ~ 670 km to the northwest of Haneti on the northwest margin of the
Tanzanian craton. Among other major global chonolith associated nickel sulphide deposits are Norilsk
(Russia) and Voiseys Bay (Canada). The importance of recognising a chonolith intrusion the potential
setting for any associated Ni sulphide mineralisation at Mihanza can be appreciated from the fact noted
in the Report that there are 62 chonoliths reported in the world, 58 of them have mineralization of
which 26 are mines and 9 are current projects.
Mwaka Hill Prospect
The report findings for the Mwaka is that the Ni and weak Cu anomaly results probably reflect
residual enrichment of nickel (laterisation process) in an underlying ultramafic rock on a
topographic high and that geochemical support for an underlying sulphide body at depth is weak.
However, this interpretation is based on an interpretation of the geochemical results alone and
does not consider the two EM conductors that have been identified from geophysical surveys
carried out by the Company in 2012. These conductors indicate potential sulphide mineralisation
at depth and sustain Mwaka as a viable drill target that will still require drill testing.
Other Areas
Similar to Mwaka, there is no strong evidence from the soil and rock geochemistry for Ni sulphide
mineralisation associated with the Kwahemu-Yobo area along trend to the South, but the Report
recommends that the sampling grids be expanded and infilled in this area to allow for a more
comprehensive detailed analyses. Similarly the Report finds that the other prospects (Mihanza
South Igari-Chini, Mwinditi, Mukulingu, Miti and Ndolonoti) need more detailed sampling in
order to carry out the detailed geochemical analysis that was possible for Mihanza.
Regional Implications of Results
Based on the robustness of the Mihanza anomaly, the Report recommends continuing expansion and
infill sampling over the other prospects and other areas along the Mihanza trend many of which have
not yet been sampled at an adequate density to allow for the detailed interpretation possible at
Mihanza. It is worth noting that approximately only 25 km (31%) of the 80 km strike of nickel
sulphide prospective Haneti Itiso Ultramafic Complex has been sampled in detail to date.
This Report focused exclusively on the nickel sulphide potential of the Haneti project and as
previously reported the gold and lithium/strategic mineral potential of the project has also been
demonstrated and will be followed up as part of future follow on exploration programmes.
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
27 January 2015
Sponsor and Corporate Adviser
River Group
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