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Haneti Nickel Project- Airborne Geophysical Data Interpretation Results
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: IE00B97C0C31
("Kibo" or "the Company")
24 June 2015
Haneti Nickel Project- Airborne Geophysical Data Interpretation Results
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
positive preliminary results from an independent Airborne Geophysical Data Interpretation carried
out over its Haneti project in central Tanzania. The interpretation used recently acquired high
resolution data acquired from the Geological Survey of Tanzania (see RNS of the 13th March
2015). Data processing and interpretation was carried out by Spinifex Geophysics of Perth,
Western Australia.
Highlights
High resolution magnetic and gravity data show the interpreted aerial extent and geological
structure of the Ni-Cu-PGM prospective Haneti-Itiso Ultramafic Complex (HIUC)
confirming its continuity over 80 kilometers of strike length;
A number of other areas have been identified within the HIUC showing similar magnetic
and gravity signatures as the known ultramafic outcrops e.g. Mihanza and Mwaka Hills,
and which can be confidently interpreted as new areas of sub-cropping ultramafic rocks
and targets for follow up exploration;
The interpretation results resolves some of the internal geological structure of the HIUC,
showing it is comprised of a number of attenuated and folded ribbons of ultramafic rocks
within the general granite-gneiss country rock which will assist geological interpretation
and help focus exploration on areas with best potential;
The interpretation has identified a new zone of ultramafic rocks over a strike length of
approximately 30 km similar to the HIUC, which will be a new target zone for follow up
exploration;
The results will allow Kibo to further rationalise the Haneti project by relinquishing areas
where no ultramafic target rocks prospective for Ni-Cu-PGM style mineralisation are
indicated;
Louis Coetzee, Chief Executive Officer of Kibo Mining plc, said: "We are extremely pleased with
the results emerging from this geophysical interpretation, which significantly enhanced our
understanding of the geological structure of the Haneti project at minimal cost. The results will
allow us to identify further priority areas for follow-up work and from which additional drill
targets similar to those already defined at Mihanza and Mwaka Hills for Ni-Cu-PGM style
mineralisation will be developed.
The latest results reconfirm our strong belief in the significant potential of Haneti and its
considerable prospectivity. We believe Haneti can generate significant value for shareholders
through future work programmes, which amongst others includes a priority first phase drill
programme and potential subsequent project partnerships.
We are pleased to see the Haneti project come into its own and take its place as a driver of
shareholder value alongside our Mbeya Coal to Power Project and our Imweru Gold Project.
Further updates across the Company's portfolio are expected to follow shortly."
Airborne Geophysical Survey Interpretation Results
Introduction
Kibo acquired high resolution airborne geophysical survey data (magnetic, gravity and
radiometric) from the Geological Survey of Tanzania (GST), covering its wholly owned Haneti
project in central Tanzania. Following an initial in-house review, the data was forwarded to the
Perth based geophysical consultants Spinifex Geophysics for detailed processing and
interpretation to assist with the further understanding of the geology of the project and generate
new target areas particularly for Ni-Cu-PGM style mineralisation. The decision to proceed with
this work followed on from the results (see RNS of the 27th January 2015) of an independent
geochemical interpretation report which identified the Mihanza Hill area as a prime drill target for
Ni-Cu-PGM style mineralisation, and by implication the potential to locate other similar targets
within the project on strike and adjacent to Mihanza Hill within the nickel sulphide prospect
Haneti-Itiso Ultramafic Complex (HIUC).
Detailed Results
Digital processing of the geophysical data to produce a number of high resolution images over the
Haneti project has enabled a detailed geological interpretation to be carried out by independent
geophysical consultant Steve Massey, Spinifix Geophysics of Perth, Western Australia.
Specifically, the results have permitted a more detailed picture of the sub-surface extent and
geological structure of the Ni-Cu-PGM prospective Haneti-Itiso Ultramafic Complex (HIUC) be
modeled which will assist with more focused targeting for follow up exploration and definition of
drill targets. The interpretation confirms that the HIUC extends over a strike length of up to 80 km
as a series of broadly northwest-southeast trending attenuated and folded ribbons of ultramafic
rocks within the general granite-gneiss country rock. Kibo's exploration programmes to date have
concentrated on the central 25 km of this nickel prospective rock sequence (equivalent to
approximately 31% of the entire HIUC strike length) where it has already established drill targets
at Mihanza Hill and Mwaka Hill that it plans to drill during 2015. The geophysical signatures of
the outcropping Mihanza and Mwaka targets can be clearly seen in the interpretation and have
helped to infer extensive zones of sub-cropping ultramafic rocks of similar composition through
the HIUC. This will permit the identification of the priority areas for follow-up mapping, soil
sampling, and ground geophysical surveys to develop other drill targets similar to Mihanza &
Mwaka. A notable feature from the interpretation is the complexly folded internal structure of the
HIUC which is most clearly interpreted from the magnetic data and extends the sub-cropping
footprint of the HIUC over a wider area than previously interpreted. This feature is common in
similar nickel prospective ultramafic sequences in East Africa and, while making the geology
more complex, may result in secondary enrichment resulting from re-mobilisation of primary
sulphides as seen in other Ni-Cu-PGM style deposits globally.
In addition to assisting with a more detailed resolution of the HIUC, the geophysical interpretation
has also indicated a new zone of northwest-south east trending mafic-ultramafic rocks in the
south-west of the surveyed block over 30 km strike. These rocks provide the Company with a new
target zone prospective for Ni-Cu-PGM style mineralisation similar in structure to the HIUC.
The Company is continuing to work with Spinifix to carry more detailed modelling and
interpretation work on the geophysical data to extract as much information as possible pertaining
not just to the Ni-Cu-PGM potential but also the gold and lithium-niobium-tantalum potential of
the project. Specific modelling on the Mihanza and Mwaka drill targets will be undertaken prior to
drilling, to optimally locate the proposed drill holes on these prospects. This approach is consistent
with our strategy to obtain the maximum information from our exploration database on Haneti by
focussed desk studies carried out both in-house and by experienced consultants prior to
recommencing field exploration including drilling.
An additional benefit from this geophysical interpretation is that it will permit the Company to
continue to consolidate the Haneti tenement package.
Background Technical Information
During 2012/2013 the GST commissioned high resolution aero-geophysical surveys over parts as
central and southern Tanzania. The surveys comprised the collection of magnetic, gravity,
radiometric and electromagnetic data. The electromagnetic data (VTEM Survey) was only carried
out over selected areas within the survey blocks. The magnetic and radiometric surveys were
flown on a line spacing of 250 m while the gravity was flown on line spacing of 2.5 km. The
surveys were carried out by Geotech Airborne Limited and Sander Geophysics Limited and data
quality control was done by the British Geological Survey in collaboration with the GST.
Pleasingly, the survey blocks covered the Company's nickel, gold and lithium prospective Haneti
project and survey data has recently been made available for purchase by private companies.
This data is of significantly better quality than the 1970's regional data already available for
Tanzania as a result of improvements in data acquisition techniques, closer line spacing and the
inclusion of airborne gravity and electromagnetic data which were previously unavailable. This
new geophysical data, when combined with the Company's extensive existing field exploration
database, is now enabling a more detailed understanding of the geological structure of Haneti
including an improved interpretation model of the sub-surface extent of HIUC which comprises
the target rock formation for Ni-Cu-PGM style mineralisation. The geophysical interpretation is
assisting the Company to target areas for follow up infill and extension sampling as recommended
in the recent geochemical interpretation report (see RNS 27 January 2015) as well as helping with
a better understanding of the existing drill targets particularly at Mihanza and Mwaka Hills prior
to drilling.
It should be noted that the Mihanza Hill target in particular has been identified from this recent
geochemical interpretation report as showing surface soil and rock sampling results in key
elements (Ni ,Cu, Cr & PGMs) characteristic of a mineralised "chonolith type" intrusion and is
considered a priority drill target. The nature of this "chonolith" model of mineralisation is that the
host intrusion often shows a complex pipe-like geometry with a relatively small subsurface
footprint and comprising a number of irregular mineralised bodies within the mineralised district.
Careful interpretation of the airborne geophysical data should assist with refining this model and
potentially identifying similar type targets to Mihanza within the HIUC, which is currently
interpreted to extend up to 8o kilometres along strike.
As the aerial extent of the geophysical survey data covers the entire Haneti project as well as
peripheral areas, the interpretation is assisting the Company with acquiring a greater
understanding of the regional geological setting of the project with regard to its overall
prospectivity for not just Ni-Cu-PGM style mineralisation but also for gold and pegmatite related
lithium mineralisation for which the Company has also had encouraging indications from
sampling to date.
Maps showing the location of the prospects discussed above and a preliminary geophysical
interpretation map of the central Ni-Cu-PGM prospective area can be found on the Haneti project
page of the Company's 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) 207 382 8300
Beaufort
Securities Limited
Broker
Oliver Morse
+61 8 9480 2500
RFC Ambrian
Limited
Nominated Adviser on AIM
Daniel Thšle
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 (Òthe MCPPÓ) 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 Mbeya with initial findings to be released in the near term. On 20 April 2015,
Kibo signed a Joint Development Agreement for completion of the Definitive Feasibility Studies and
development of the MCPP with China based EPC contractor SEPCO III.
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
24 June 2015
Corporate and Designated Adviser
River Group
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