Wrap Text
Mbeya Coal to Power Project (MCPP): Restatement of the Mbeya Coal Resource 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")
11 April 2016
Mbeya Coal to Power Project (MCPP): Restatement of the Mbeya Coal Resource
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 the
restatement of the Mbeya coal resource has now been completed. This represents another
key milestone as the MCPP approaches the final stages of its development ahead of
Financial Close.
Key highlights
*Increase in total Mineral Resource from 109.23 million tonnes (Mt) to 120.793 Mt
representing a 10.42% increase over the previously disclosed Mineral Resource
*Re-classification of total Coal Resource into Measured Resource of 20.904 Mt,
Indicated Resource of 88.601 Mt and Inferred Resource of 11.28 Mt
*Final Raw Quality attributes of coal are within specification for power plant design
*Restatement represents a substantial increase in the quality and confidence level of
the Mineral Resource which will provide a critical input to the reserve statement of the
Mining Definitive Feasibility Study (MDFS) currently underway
*91% of restated resource now qualifies for inclusion in ultimate reserve statement
Louis Coetzee, CEO of Kibo Mining, said: "The restated Mbeya coal resource is a further
example of the MCPP feasibility study exceeding our expectations. The work undertaken
was primarily aimed at improving confidence levels in the resource, to enable the MDFS
to state an appropriate coal reserve. This objective was exceeded, with 91% of the total
resource now in the Measured and Indicated categories. An unexpected 10.4% increase in
the overall resource was also delivered.
The restated Mbeya coal resource also provides comfort that the mine will have sufficient
reserve capacity, subject to viable MDFS results, to satisfy the energy needs for potential
future expansions of the Mbeya Power Plant.
Restatement of the Mbeya coal resource is a critical activity in the MDFS work
programme. With this completed, progress on the MDFS can remain on schedule.
We continue to make good progress with all three main work streams of the MCPP
integrated feasibility study and overall progress remains on schedule, as per the timeline
that can be viewed at: MCPP Timeline & Description."
Background
As part of the MDFS on the MCPP, Kibo undertook a geotechnical diamond drilling
programme over the proposed coal mine site in mid-2015 (refer RNS dated 15th October
2015). While primarily designed to test the ground conditions around the final pit position
and determine the final slope angle for the pit design, the drill samples recovered also gave
the opportunity to test the metallurgical properties of the coal and contribute to a
restatement of the overall Mbeya coal resource. Initial results from the drilling pertaining to
the pit design and metallurgical testing have already been announced (refer RNS of the 20th
January and 17 February 2016 respectively). The restatement of the Mbeya Mineral
resource is now being announced and is based on a re-assessment of the historic drill results
used to establish the existing Mineral Resource, the recently acquired sample results from
the geotechnical drill programme and all other relevant data acquired during the course of
the feasibility studies currently underway on the MCPP.
The work for the resource restatement was carried out by Coenie van Niekerk of Gemecs
(Pty) Limited and represents a restatement of the Mbeya (formerly Rukwa) Mineral
Resource by the same author. The resource is stated as a NI 43-101 compliant resource.
Table 1: Restated Mbeya Resource Statement (dated 31 March 2016)
SEAM SEAM NI43-101 IN SITU % IN SITU RAW QUALITIES (AIR DRIED)
THIKNESS CLASS Megatons GEOLOGICAL Megatons RD ASH IM VM CV TS
No discount DISCOUNT with discount gm/cc % % % % %
S4 Measured 0 -5% 0
S3U 2,25 Measured 3,186 -5% 3,027 1,65 43,7 5,3 23,1 14,6 1,96
S3L 2,58 Measured 3,722 -5% 3,536 1,58 36,6 6,2 25,2 16,9 1,45
S2 3,89 Measured 6,279 -5% 5,965 1,56 34,7 6,5 24,5 17,3 1,31
S1U 2,61 Measured 4,180 -5% 3,971 1,67 38,4 5,7 23,1 16,1 1,00
S1L 2,92 Measured 4,159 -5% 3,951 1,56 33,7 6,0 23,6 17,8 0,86
S0 1,39 Measured 0,477 -5% 0,453 1,59 37,7 6,2 22,5 16,0 0,42
Measured 22,004 -5% 20,904 1,60 36,91 6,02 23,92 16,68 1,26
S4 1,04 Indicated 3,49 -10% 3,14 1,74 48,6 5,2 22,1 12,8 1,36
S3U 2,09 Indicated 12,17 -10% 10,95 1,67 45,5 5,3 22,2 14,2 1,55
S3L 2,00 Indicated 13,08 -10% 11,77 1,64 41,3 5,1 24,0 15,6 1,97
S2 3,41 Indicated 25,64 -10% 23,08 1,58 36,9 5,8 24,4 16,8 1,10
S1U 2,26 Indicated 18,16 -10% 16,34 1,72 44,3 5,0 22,0 14,2 1,02
S1L 2,74 Indicated 21,29 -10% 19,16 1,67 38,1 5,2 22,6 16,4 0,66
S0 1,31 Indicated 4,61 -10% 4,15 1,66 41,4 5,5 21,4 15,2 0,69
Indicated 98,446 -10% 88,601 1,65 40,79 5,31 23,01 15,52 1,15
S4 0,82 Inferred 0,4 -15% 0,3 1,87 56,9 5,1 18,9 9,6 0,99
S3U 2,48 Inferred 2,3 -15% 2,0 1,69 46,9 5,1 21,5 13,5 1,49
S3L 1,79 Inferred 1,8 -15% 1,5 1,75 47,6 5,2 21,7 13,2 2,43
S2 3,00 Inferred 2,2 -15% 1,9 1,54 33,7 6,4 24,6 17,7 1,32
S1U 2,26 Inferred 2,8 -15% 2,4 1,74 42,3 5,8 21,9 14,2 1,01
S1L 2,93 Inferred 3,6 -15% 3,1 1,68 35,6 5,5 23,2 17,0 0,85
S0 1,13 Inferred 0,1 -15% 0,1 1,67 44,3 5,4 20,5 13,9 0,50
Inferred 13,280 -15% 11,288 1,69 40,99 5,58 22,51 15,17 1,29
GRAND TOTAL 133,729 120,793 1,65 40,17 5,45 23,11 15,68 1,18
Technical Notes:
-Minimum Seam thickness = 0.50m
-Maximum % Raw Ash = 70%
-Borehole densities:
*Measured 8bh/100h
*Indicated 4bh/100ha
*Inferred 1bh/100ha
-Geological Discount for unforeseen geological features
*Measured Resources 5%
*Indicated resources 10%
*Inferred Resources 15%
The restated total Mineral Resource has increased from 109.39 Mt disclosed in the previous
resource statement from April 2012 to 120.793 Mt. This represents a 10.42 % increase in the
total Resource and incorporates geological discounts on the calculated resources of each coal
seam of between -5% to -15% (commensurate with each resource classification). Comparison
of changes within the individual resource classifications (Measured, Indicated and Inferred)
are shown below.
Table 2: Comparison between Restated Mbeya Resource and Previous Resource
Statement (dated April 2012)
Resource Category Previous Resource Restated Resource Increase/decrease
Mt Mt (Table 1) Mt
Measured 0 20.904 +20.904
Indicated 71.34 88.601 +17.261
Inferred 38.05 11.28 -26.77
Total 109.39 120.79 11.4
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 2 above), 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 Definitive Feasibility Study for the Mbeya project with an integrated Bankable
Feasibility Report for the MCPP 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 and a 168,000oz NI 43-101 compliant gold Mineral Resource
at Lubando Project 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 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 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
Review by Qualified Persons
The information in this announcement that relates to the Mbeya Coal Mineral Resource is taken from
a report 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
11 April 2016
Designated and Corporate Advisor
River Group
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