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: IE00B61XQX41
("Kibo" or "the Company")
Dated: 9 September 2013
Haneti Joint Venture Project Update: First Laboratory Results
· New Ni-PGM prospective ultramafic outcrops identified
· Preliminary soil samples results confirm Mihanza and Mwaka as initial priority drill targets
· Regional programme identified new ultramafic occurrences
· Initial soil sampling programme completed ahead of schedule
· Follow up soil sampling completed over new target areas identified from geological mapping
Kibo Mining ("Kibo" or the "Company") (AIM: KIBO), (JSE: KBO), the Tanzania focused mineral exploration and development company, is pleased to provide a further interim operational update of its Tanzanian Haneti Joint Venture Project, which is being funded by its joint venture partner, Votorantim Metais. This update reports on project activities for the period since the last RNS, and ending August 31, 2013.
The current soil sampling and mapping work is focused on metamorphosed ultramafic rocks which are targets for nickel, gold and platinum group metal element ("PGE") mineralization. Previous sampling and mapping programmes identified anomalous nickel and gold grades and the current sampling programme is intended to provide additional detailed surface geochemical data to support and confirm the final selection of locations for initial test drilling, in the absence of sufficient surface geology that will normally aid in determining these decisions.
The discoveries of new ultramafic outcrops, the additional information gained from the geological mapping programme and the latest geochemical soil sampling results have added significantly to the understanding of the geology of the project. Specifically, at Mwaka and Mihanza the latest soil geochemical results together with previous soil geochemical, trenching and geophysical results have confirmed these prospects as initial priority drill targets.
Louis Coetzee, CEO of the Company, commented today:
"The Company is extremely pleased with the progress made to date. The project is well managed and we are confident that the main objective of the sampling programme, i.e. gaining an improved understanding of the geology in order to identify and prioritize drill targets, has by and large been achieved. The final objective of the current programme after completion of all field activities will be to recommend a detailed drill programme to test for mineralization."
Additional Technical Information
This RNS reports on exploration results available since the previous interim update (RNS dated 31 July 2013) and covers the period ending August 31, 2013. A highlight during the period was the discovery of two previously unknown ultramafic outcrops - one at Mihanza South and a second unnamed body 9 km northwest of Mindii from magnetic and satellite photo interpretation. These provide further evidence of the continuity of the Ni-PGM prospective ultramafic belt and provide new target areas for follow up sampling and possible drill target definition.
Operationally, the sampling teams continue to show excellent productivity, collecting more than the planned number of soil samples for the month and completing the planned sampling program early in August, two months ahead of schedule. To date 2,428 soil samples have been taken and submitted to the laboratory. In addition to soil sampling over existing targets at Mwaka, Mihanza and Kwahemu, sampling has now been completed over newly generated target areas at Mukulingu, Mitu, Ndolanti, Mihanza South and Igari Cheni.
Preliminary soil sampling results received for the Mihanza and Mwaka targets show anomalous metal concentrations that are consistent with previous surveys. These new results have provided further infill sampling and analytical results for an expanded element suite than was previously available. This expanded soil geochemical database will greatly assist in geological interpretation and the selection of drill hole locations. A summary of the soil results for the most relevant elements for Ni-PGM and gold mineralization are discussed below.
High metal-in-soil values for nickel, chromium, cobalt, iron were reported over mapped ultramafic lithologies at Mwaka and Mihanza with values of up to 10,000 ppm, 1,530 ppm, 306 ppm and 13.75% respectively. Copper values were up to 359 ppm and highest values correlate well with high gold values on Mwaka Hill of up 0.294 ppm. Highest platinum and palladium values (soils from selected sampling lines only analysed for these elements) were 0.038 ppm and 0.039 ppm respectively. The platinum and palladium values, while not significantly anomalous are consistent with values previously obtained from sampling at Mwaka.
High gold-in-soil values of up to 0.320 ppm were obtained on the south eastern side of Mihanza and these will require further investigation. It is proposed to follow up with trenching and sampling in this area. Preliminary inspection of the gold anomalous suggests that it may be associated with quartz veining at the contact between metagabbros and ultramafic serpentinites.
In addition to sampling and mapping on the known ultramafic belts east of Haneti, a regional reconnaissance mapping, prospecting and sampling programme is in progress in order to generate new Ni-PGM and gold targets on the project. To date new ultramafic occurrences have been identified in the south of the project at Dulu and Gulali and these are currently being mapped and sampled. The regional programme will continue to the end of September.
Review by qualified person
The information in this RNS that relates to exploration results, mineral resources or ore reserves is based on information reviewed by Noel O'Keeffe, PGeo, who is a Member of the Institute of Geologists of Ireland and is Kibo's Exploration Director. Noel O'Keeffe has at least five years experience within the sector which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a qualified person. Noel O'Keeffe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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) 20 3216 2630 |
XCAP |
Broker |
Stuart Laing |
+61 8 94802500 |
RFC Ambrian Limited |
Nominated Adviser on AIM |
Matt Beale |
+44 (0)7966 389196 |
Fortbridge |
Investor Relations |
Updates on the Company's activities are regularly posted on its website www.kibomining.com
General Background & Strategy
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM in London on 27 April 2010 and AltX in Johannesburg on 30 May 2011. The Board of Kibo is composed of professionals whose experience include mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial control of public companies. It is supported by competent and motivated a Tanzanian staff that operates from Kibo's operations office in Dar es Salaam.
The mineral assets of the Company comprise five projects areas in Tanzania - Haneti (nickel, PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal & Uranium).
The Haneti project is the subject of a joint venture with Brazilian Votorantim Metais Participações Ltda, a member of Votorantim Group. The Rukwa and Pinewood projects are situated close to the Mtwara Corridor, an area where the Tanzanian Government has committed to significant infrastructure development and which has seen recent multi-million dollar investment in coal and coal-fired power stations and uranium exploration.
The Lake Victoria project covering a gold prospective licence portfolio in Tanzania's premier gold mining region, the Lake Victoria Goldfield, been recently enhanced by the addition of two brownfield gold projects Imweu and Lubando. Both projects have NI 43-101 compliant total gold resource of approximately 798,000 ounces (total of Measured, Indicated and Inferred for both projects). These projects provide the Company with drill ready targets supporting its objective to increase the size and quality of the existing resource in the short term.
The Rukwa project is substantially more advanced than Kibo's other exploration projects, with a significant Mineral Resource of thermal coal already defined. The project enjoys strong support expressed by the Tanzanian Government for the expedited development of a coal mine and mine-mouth coal-fired power plant and which is further enhanced by the now formal relationship between the Korean Government owned Korean East - West Power Co. Ltd. ("EWP") and Kibo. In this relationship the parties have entered into a formal MOU which states the parties' respective commitments towards the joint development of the Rukwa Coal to Power Project ("RCPP"), where EWP will be responsible for developing and operating the power generation side of the RCPP and Kibo will be responsible for developing and operating the mining side of the RCPP.
Kibo's objective is to build shareholder value in a sustainable manner. This objective will be pursued primarily through active exploration of its own projects and by using the Company's experience in Tanzania to acquire attractive exploration and development assets on competitive terms that can be moved swiftly up the value curve by using the Company's own skills base whilst also seeking to benefit from strategic collaborative relationships with industry leaders who have special skills and competencies within their chosen fields of focus. Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.
Johannesburg
9 September 2013
Corporate and Designated Adviser
River Group
