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KIBO MINING PLC - Uranium Joint Venture Commences

Release Date: 26/02/2015 11:00
Code(s): KBO     PDF:  
Wrap Text
Uranium Joint Venture Commences

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: 26 February 2015

Uranium Joint Venture Commences
 
On 21 November 2014, AIM listed exploration and development company Kibo Mining Plc 
("Kibo" or the "Company")(AIM: KIBO; JSE AltX: KBO) announced that it had entered into a 
Memorandum of Understanding ("MOU") with Metal Tiger Plc ("Metal Tiger") regarding a 50/50 
Joint Venture ("JV") on Kibo's uranium-prospective tenements in Tanzania ("Pinewood 
Portfolio") wholly owned by Kibo's 100% owned subsidiary company, Kibo Uranium Ltd ("KB 
Uranium").

Highlights:

* Joint Venture Activities have commenced with first funds paid
* Metal Tiger holds 50% interest in  the Pinewood Portfolio
* Portfolio consists of 43 licences, offers, applications and tenders with a combined surface 
  area of approximately 9,033 square kilometre in Tanzania

Kibo Mining is pleased to announce that it has now commenced activities under the JV with Metal 
Tiger. Metal Tiger has transferred the first tranche of funds to cater for the ongoing licence fees 
and maintenance costs and Metal Tiger has been issued with new ordinary shares in KB Uranium 
such that it now holds 50% of KB Uranium representing a 50% stake in the joint venture on  the 
Pinewood Portfolio.

Kibo's CEO, Louis Coetzee, commented: "Kibo Mining is pleased to confirm the 
commencement of Joint Venture activities with Metal Tiger in respect of the Pinewood Uranium 
Portfolio.  Pinewood is highly prospective for Uranium and the key to unlocking the value in the 
project holds is to move it into active operational status. This announcement today confirms the 
first step in that process, with ongoing costs to be funded by Metal Tiger enabling Kibo to benefit 
from future upside without the cost of operational activities.

Recently there have been indicators of a potential recovery in the Uranium sector and the 
restoration of operational activities at Pinewood, if ultimately coinciding with a Uranium market 
recovery, could prove highly value generative for both Kibo Mining and Metal Tiger."

Uranium Prospective Joint Venture Areas - Pinewood Portfolio

Kibo Uranium Limited, now a 50% owned subsidiary of Kibo Mining Plc, and 50% owned 
subsidiary of Metal Tiger, owns a portfolio of Uranium prospective assets licences for exploration 
in Tanzania (collectively the "Pinewood Portfolio").

The Pinewood Portfolio of exploration licences is located in the southern western corner of 
Tanzania, between the regional capitals of Iranga, Mbeya and Songea. The portfolio consists of 43 
licences, offers, applications and tenders with a combined surface area of approximately 9,033 
square kilometres.

Key Terms of the Uranium Project Joint Venture

The parties have commenced under their JV agreement, operating under their MOU on the 
following terms: 

* Kibo Uranium Limited ("KB Uranium"), 50% owned by Kibo Mining Plc and 50% owned 
  by Metal Tiger Plc, owns the Pinewood Portfolio.

* Metal Tiger has commenced meeting the expenses in relation to the licence renewal fees 
  and other maintenance costs of the Pinewood Portfolio for a minimum of 1 year (estimated 
  to be approximately $100,000) and up to a maximum of 3 years.

* Metal Tiger is to expend the first US$800,000 under the JV in expenses and exploration 
  relating to the Pinewood Portfolio, at which point costs moving forward are shared 50/50 
  between the parties.

* At any time following the first anniversary of the JV, on not less than 90 days notice to 
  Kibo, Metal Tiger may elect to cease sole funding of the JV expenditure.

* Should Metal Tiger elect to not continue with the JV after the minimum term of one year, or 
  fail to expend US$100,000 by the first anniversary of the JV, or should Metal Tiger fail to 
  expend the full expenditure by the third anniversary of the JV then:

    - if less than US$300,000 of the agreed expenditure, the 50% interest in the JV owned 
      by Metal Tiger shall revert back to KB Uranium subject to them exercising a claw-
      back option;

   - if greater than $300,000 of agreed expenditure, KB Uranium shall have the right to 
     exercise the claw-back option in respect of Metal Tiger's interest in KB Uranium 
     however Metal Tiger shall retain a 10% free carry in the Pinewood Portfolio.  

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 Thole
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

26 February 2015

Designated and Corporate Adviser

River Group




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