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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")
13 July 2015
Haneti Nickel Project: Airborne Geophysical Data Interpretation Results: Significant Depth
Extent and Strike Length of Ultramafic Complex with Two New Mafic-Ultramafic Zones
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 the
final report from an independent Airborne Geophysical Data Interpretation carried out over its
Haneti project in central Tanzania. The results from the preliminary findings were announced on
the Company's RNS dated 24 June 2015.
Highlights
*The final report confirms the location, strike extent and internal structure of two newly
interpreted composite mafic-ultramafic zones extending significantly the previously known
"footprint" of the Haneti-Itiso Ultramafic Complex (HIUC);
*The newly outlined mafic-ultramafic zones, with strike lengths of approximately 30 km
(Southwest Zone) and 10-20 km (Northwest Zone) occur to the Southeast and the Northwest
of the central 80 km long (strike length) HIUC respectively and may represent folded
repetitions and fault off-set extensions of the HIUC;
*Modelling of the high magnetic anomaly over the Mihanza drill prospect shows that the
magnetic susceptibility increases with depth and the prospective rocks extend to 800 m
which indicates the potential for a significant volume of nickel prospective target rock at this
location alone;
*The data from the geophysical study will continue to be evaluated both in-house and by the
Company's consultants to assist with geological modelling, new ground acquisition
exploration targeting and exploration programme design.
Louis Coetzee, Chief Executive Officer of Kibo Mining plc, said: "We are pleased to announce
the completion of this phase of geophysical interpretation work at our Haneti project. The results
emerging from our desktop studies, which commenced late last year, aimed to extract optimum
benefit from our existing exploration database and the Tanzanian Government geophysical data
which recently became available.
The interpretation and modelling has produced exciting results, showing the HIUC rocks occur
over a far greater strike length than previously thought. This work enabled the prospectivity of
Haneti for nickel sulphide mineralisation to be enhanced significantly, at minimum cost, and
provides a more detailed picture of the sub-surface extent and geological structure. This will
assist us in implementing a more focused drilling programme."
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 prospective
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, now with Western Geophysics (Pty) Ltd. (having recently
moved from Spinifix Geophysics (Pty) Ltd.) 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 HIUC be modeled which will assist with more focused targeting for follow
up exploration and definition of drill targets. In addition to the preliminary results previously
announced in the Company's RNS of the 24th June, the final interpretation report has provided
more detailed in-fill interpretation work as well as presenting the results of 3D inversion modeling
on one of the Company's priority drill targets at Mihanza Hill.
The integrated interpretation results now show that the areal extent of the known sub-outcrop of
the HIUC can now be significantly extended into areas where it was not previously mapped. The
principal interpreted extensions occur to the Southwest and the Northeast of the central known 80
km strike extent of the HIUC. The Southwest Zone extends over a strike length of 30 km and is up
to 6 km wide. It shows similar tight folding on the highly magnetic interpreted ultramafic bands as
is seen on the magnetic signature of the central HIUC and is also similarly orientated in a
Northwest-Southeast direction. The Northeast Zone appears to be part of a different structural
terrane where its dominant strike trend is East-West and is interpreted as comprising domains of
tightly folded mafic-ultramafic rocks with strike lengths of approximately 10 km to 20 km. The
tight folding and folding within the now extended HIUC suggests that it comprises similar age,
once continuous bands of mafic-ultramafic rocks subsequently highly deformed and folded by
orogenic processes.
The high magnetic anomaly over the Mihanza drill target was modeled using a 3D inversion
modeling technique to better understand how the magnetic signature over the prospect varies with
depth. The model indicates the magnetite (the principal mineral that creates a magnetic signature
in rocks) content appears to have been deposited in an en-echelon pattern and appears to increase
with depth (increase in magnetic susceptibility), most noticeably from 300 m to the modelled
depth of 800 m. The implications of these results is that there is a considerable "root" to the
Mihanza ultramafic outcrop which points to a large volume of rock that could have positive
implications for the differentiation of nickel sulphide rich magmas and provides a large volume of
nickel prospective target rock at this location alone.
This geophysical study has generated a large number of processed images for magnetic, gravity
and radiometric data which will continue to be evaluated both in-house and by the Company's
consultants to assist with geological modelling, new ground acquisition exploration targeting and
exploration programme design. While the interpretation just completed made most use of the
magnetic data as it is the most appropriate, from that available, for Ni-Cu-PGM style targeting, the
other geophysical data will continue to be interrogated to assist the exploration effort over the
Haneti region for nickel, gold and lithium related pegmatite mineralisation.
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 areal 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.
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
LimitedNominated Adviser on AIM
Daniel Thšle
+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
13 July 2015
Designated and Corporate Advisor
River Group
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