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KIBO MINING PLC - Mbeya Definitive Mining Feasibility Study: Results from Geotechnical Drill Programme Received

Release Date: 20/01/2016 09:00
Code(s): KBO     PDF:  
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Mbeya Definitive Mining Feasibility Study: Results from Geotechnical Drill Programme Received

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:  IE00B97C031
("Kibo" or "the Company")

20 January 2016

Mbeya Definitive Mining Feasibility Study: Results from Geotechnical Drill Programme Received

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed 
mineral exploration and development company, is pleased to announce the results from Phase 1 of 
Stage 2 of the Mbeya Definitive Mining Feasibility Study (MDMFS). This is a critical work 
stream of the final stage of the broader Mbeya Coal to Power Project (MCPP), Mining Feasibility 
Study.  

Key highlights

* 820 meter geotechnical diamond core drill programme confirmed slope angles of pit design to 
  be well within safety requirements;

* Programme results provided unexpected opportunity to further improve and optimize pit 
  design;

* Programme results confirmed decision not to do any river diversion as viable and prudent; and

* Restatement of Mbeya Coal Resource commences.

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the latest results and also 
with the overall progress of the MDMFS. Since announcing the very first set of results from the 
concept study and with every announcement since, the MCPP has consistently demonstrated that 
it is a project with considerable financial and technical substance. This will stand us in good stead 
during the coming weeks when we work on finalizing the power purchase agreement and other 
commercial agreements associated with the MCPP."

Background MDMFS: Phase 1

Kibo and its advisers, Minxcon Projects, are now in receipt of the final results for Phase 1 of Stage 
2 of the MDMFS, which was completed during Q3 2015. The work mostly comprised of a 
geotechnical drilling programme on the Mbeya coal mine site (please see the RNS dd. 15 October 
2015).  The bulk of the work done during Phase 1, Stage 2, of the MDMFS consisted of an 820 
meter diamond core drill programme. This mission-critical component of the MDMFS was 
required to confirm the ground conditions in and around the final pit position, which in turn 
determines the final slope angles in the pit design. The final slope angles are an absolute pre-
requisite for final and detailed mine design. The better than expected results from the geotechnical 
programme not only confirmed the slope angles but also made it possible to further improve the 
detailed mine design that will be completed during the MDMFS. It is expected that this 
improvement in the detailed mine design will make a positive contribution at a technical level and 
will also further enhance the overall economics of the Mbeya Coal Mine.
The drill programme comprised a total of 8 holes, accurately angled and directed at specific 
strategic positions to penetrate the pit hanging wall at depths varying from 95 - 120m and totalling 
820m. Geotechnical samples were collected from the recovered core and submitted for laboratory 
analysis and these results now form the basis of the geotechnical input parameters for the final 
mine design. 

An immediate next step in the MDMFS will involve the restatement of the Mbeya coal resource. 
This will be based on the technical work that was done on the coal resource during the feasibility 
studies to date, the additional geological data gained from the geotechnical drill programme, as 
well as the data from earlier exploration drilling, sampling and laboratory analysis that has not yet 
been incorporated in the Mbeya coal resource statement. 

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 / Anna 
Legge
+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, the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa Coal to 
Power Project ("RCPP"), 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 the Mbeya project with an integrated Coal-Power interim study report 
to be released in the near term. On 20th April 2015, Kibo signed a Joint Development Agreement 
for the 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 the 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.
Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for 
nickel, PGMs, gold and strategic metals including lithium.
 
Kibo Mining further holds the Pinewood (coal & uranium) project where the company has 
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has also 
entered 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


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

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

Johannesburg
20 January 2016
Corporate and Designated Adviser
River Group



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