Wrap Text
Mbeya Coal to Power Project: Critical Next Step of Integrated Feasibility Study Completed
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")
08 February 2016
Mbeya Coal to Power Project: Critical Next Step of Integrated Feasibility Study Completed
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed
mineral exploration and development company, is pleased to announce that Phase 1 of the Mbeya
Coal to Power Project ("MCPP"), Integrated Bankable Feasibility Study ("IBFS"), has been
successfully completed.
Key highlights
Successful integration of three primary MCPP feasibility study work streams;
Pivotal meetings with all key Government stakeholders completed; and
Formal appointment of Shangoni Management Services LTD as environmental consultant.
Louis Coetzee, CEO of Kibo Mining, said: "The completion of the first phase of the IBFS is a
critical step in the overall feasibility work which is now progressing at pace. The four key work
streams, (MDFS, PDFS, EIA and IBFS) are all active and progressing in parallel. This is in itself
the strongest indicator of the considerable momentum with which the feasibility work on the
MCPP is advancing, and fast nearing completion.
We took great care during the preceding stages of the MCPP feasibility work to ensure that solid
foundations are put in place on which the MCPP can be developed. These would be particularly
important during the final stages of the feasibility work, when the project is invariably subjected
to stringent external stress tests. During the past week the MCPP underwent its first significant
external stress test and withstood this with ease. This bodes well for the intricate commercial and
funding related negotiations in the coming weeks and months."
Background IBFS: Phase 1
Before the MCPP can advance to financial close, it must first deliver an appropriately competent
IBFS that meets internationally accepted technical and financial standards. The key contributors to
this integrated IBFS are the following:
Definitive Mining Feasibility Study ("DMFS")
Definite Power Feasibility Study ("DPFS")
Environmental Impact Assessment ("EIA") for both the Mbeya coal Mine and the Mbeya
Power Station
In recent announcements by the Company (please see the announcements dated 05 November
2015, 14 December 2015, 07 January 2016 and 12 January 2016), the commencement of the
DMFS and DPFS was announced, followed by various updates on the progress in this regard. As
the critical contributors to the IBFS, these two studies had to be implemented first, followed by the
EIA, the third critical contributor to the IBFS. With these three main contributors to the IBFS well
underway the next critical step was to implement Phase 1 of the IBFS, which comprises the
integration of the three fundamental works flows mentioned above, to enable the IBFS to be
conducted in parallel to the DMFS, DPFS and EIA. During a five-day work session in Tanzania
that started on 31 January 2016 which was attended by Kibo as project sponsor and by the project
teams of Tractebel, MinXcon and Shangoni, the Company successfully integrated the work flow
of the main IBFS contributors and in doing so also completed Phase 1 of the IBFS.
The work session referred to above involved critical co-ordinating and planning meetings with all
the key Government departments and stakeholders concerned with the MCPP and included
amongst others the Tanzanian Ministry for Energy and Minerals, TANESCO (national electricity
utility company) and EWURA (regulator - electricity and water). The work programme finally
concluded with an extensive technical site visit to the MCPP project site by all the project teams
mentioned above.
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 Thöle
+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 MCPP�) 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
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
08 February 2016
Designated and Corporate Advisor
River Group
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