Wrap Text
Mbeya Coal to Power Project: Special Analysis Test Results Provides Further Impetus to Definitive Feasibility Study
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")
17 February 2016
Mbeya Coal to Power Project: Special Analysis Test Results Provides Further Impetus to
Definitive Feasibility Study
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed
mineral exploration and development company is pleased to announce the special analysis
(specific metallurgical tests) test results on the Mbeya coal resource of the Mbeya Coal to Power
Project ("MCPP").
Key Highlights
* Ash fusion temperature (in both oxidizing and reducing environments) well above boiler
operating temperature;
* Abrasive index of coal well within specifications for use with the fluidized bed
technology;
* The Hardgrove Grindability Index ("HGI") test shows coal to be within specifications for
use with fluidized bed technology;
* Sulphur content well within tolerance;
* Lime injection technology will be able to comfortably keep Sulphur Dioxide emissions
within required international emission standards; and
* Ash content within tolerance levels for similar coal deposits in Southern Africa.
Louis Coetzee, CEO of Kibo Mining, said: "The results from the metallurgical test work on the
Mbeya coal resource, marks another major step forward in the development of the MCPP.
Feasibility work done to date on the Mbeya coal resource independently concluded that the
mining component of the MCPP is a very robust mining project with outstanding economic and
technical fundamentals. This did however not consider specific metallurgical properties of the
coal as such and whether the properties of the Mbeya coal would be equally complimentary to the
technical fundamentals of the power component of the MCPP.
The metallurgical test results received have proven that the Mbeya coal not only meets, but
exceeds, the standard technical requirements of the power plant. With these latest test results the
Mbeya coal resource has now passed all the technical and economic requirements to qualify as a
suitable long term fuel source to the Mbeya Power Plant.
We can now focus all our attention and resources on concluding the remaining mostly
administrative and commercial aspects of the MCPP DFS".
Background
The recently completed diamond drilling programme on the MCPP was designed to collect
detailed geotechnical data within the mining area, as well as to collect samples to test specific
metallurgical properties of the Mbeya coal. This data was required to enable ongoing work on the
MCPP DFS.
Eight final diamond core holes were drilled and as part of the metallurgical programme, each drill
hole was logged and sampled in detail, following a strict procedure laid out by the Competent
Person (CP) and in accordance with accepted international standards. A total of 44 composite
samples were prepared. These samples were confined to the individual coal seams so as to provide
representative sample coverage over each coal seam.
Each sample was analysed for:
*Average relative density (ARD);
*Wash analyses with each fraction allayed for: Proximate, Gross calorific value (GCV)
and sulphur;
*Inherent moisture;
*Volatile matter;
*Ash;
*Calorific value;
*Total sulphur;
*Hydrogen;
*Carbon;
*Ash fusion temperature (AFT) in oxidizing atmosphere;
*Ash fusion temperature (AFT) in reducing atmosphere;
*Abrasiveness;
*Hardgrove grindability index (HGI);
*Nitrogen;
*Ash Analyses;
*Chlorine; and
*Chloride.
The results from the analyses were considered by several industry professionals and it was found
that in all cases the metallurgical properties of the coal, met and or exceeded the quality standards
for use in a fluidized bed power station. All the consulting experts concluded that the coal
metallurgy and quality was suitable for use in a fluidized bed coal power station.
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
17 February 2016
Designated and Corporate Advisor
River Group
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