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: 16 September 2013
Recent Encouraging Stream Sampling Results from Morogoro North Project
· Positive gold-in-stream sampling results from three out of four licenses sampled
· Licences located in similar geology to East Africa Metal's Handeni project
· 18 samples show gold values > 0.05 ppm with a maximum value of 0.108 ppm
Kibo Mining ("Kibo" or the "Company") (AIM: KIBO), (JSE: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce that it has received encouraging gold-in-stream geochemical results from sampling carried out earlier this year at its Morogoro North project. Results for three out of the four Prospecting Licenses ("PLs") show strong anomalous gold values at a number of sample locations and up to a maximum of 0.108 ppm on PL 2250/09.
The Company considers these results (see detail discussion below) to be very encouraging and they provide attractive target areas for follow up work. The sampled PLs are all located 60 km to 100 km East of East Africa Metal's (formerly Canaco Resources) Magambazi Deposit within similar geology comprising amphibolites and biotite gneisses of high metamorphic grade. The published gold resource for Magambazi (Source: East Africa Metal's website) is 15.2 Mt @ 1.48 grams per tonne (721,300 ounces) in the Indicated category and 6.7 million tones @ 1.36 grams per tonne (292,400 ounces) in the Inferred category.
The stream sampling results being reported are from samples taken as part of Kibo's Stage 1 exploration programme at its Morogoro North project carried out in late 2012 and early 2013. The Company has already reported the stream sampling results for PLs 6717/2010 and 6598/2010 in the southern part of the project (Gairo and Berega Blocks) as part of its exploration updates (RNS releases) of 21 June and 14 November 2012 respectively.
Louis Coetzee, CEO of the Company, commented today:
"The Company is pleased with the latest results from our Morogoro North project. Although the initial stage 1 and 2 sampling programs indicated low gold values as previously reported, we remained confident in our geological interpretation and exploration strategy for the Morogoro North Project. The additional sampling work towards the North produced significant anomalies and seems to correlate well with recent regional discoveries. These results not only support and confirm our initial exploration strategy for the project, but also provided us with the required level of technical understanding and confidence which definitely warrants additional follow-up work.
With the next field season now entering its planning phase, the Company finds itself in a position where it can confidently plan progressive work programs for 2014, based on the positive results and continuous progress reported on all its projects over the past few months."
Additional Technical Information
The Morogoro North project is located to the North and East of the towns of Morogoro and Dodoma respectively, in central Tanzania and provide the Company with a large early stage ground holding in a relatively new gold exploration region of Tanzania. The project originally comprised licence interests ( PLs, Offers and Applications) totaling about 4,000 km2 but following a recent licence consolidation in order to focus on the most prospective tenements within the package, the Company's total interests now cover just over 1,000 km2. The results being reported are from four PLs, 6601/10, 6249/10,6250/09 and 7947/12 with a combined area of 361 km2 and are located in the northern part of the project. The dominant geology on all four PLs comprises amphibolites & biotite gneisses of relatively high metamorphic grade belonging to the Paleo-Proterozoic Usagaran System.
In total, 286 stream sediment samples were taken (sample density of approx 1 sample per 1.2 km2).An additional 25 samples were also taken for QA/QC purposes. In the field, appropriate high energy sample sites were sought behind boulders are on stream bars where poorly sorted gravel and cobble bars could be found. Pits were excavated to a 1m or more to obtain about 25 kg of material from close to bedrock or the stream bed. The samples were returned to a central preparation location where they were wet sieved to -80mesh, air dried and 1 to 2 kg of sample material packaged for transport to ALS Chemex's preparatory laboratory in Mwanza. In Mwanza the samples were pulverized to 70um and the pulps air freighted to the ALS Chemex analytical laboratory in Johannesburg. The samples were analyzed for Au gold by 50g fire assay with an ICP-AES finish.
The gold-in-stream results for PL 6601/10 were disappointing with 79 of the 80 samples taken showing gold values of < 0.01 ppm. The remaining sample showed the highest value for the PL of 0.018 ppm. It is likely the Company will now relinquish this area.
The combined sample statistics for the stream results over PLs 6249/09, 6250/09 and 7497/12 are shown in the table below.
Number of Samples |
Gold-In-Stream Values in ppm |
% of Total* |
|
|
|
54 |
< 0.001 (Lower Detection Limit) |
26% |
114 |
0.001 to < 0.01 |
55% |
14 |
0.01 to < 0.02 |
7% |
6 |
0.02 to <0.05 |
3% |
18 |
0.05 to 0.108 |
9% |
Total Samples = 206 |
Maximum Value = 0.108 |
|
*Rounded to nearest whole number |
The Company considers values of greater than 0.02 ppm gold sufficiently high to warrant follow up and in particular the 9% of the samples with values in the 0.05 to 0.108 ppm range.
The anomalous values of > 0.02 ppm are relatively evenly spread over all three PL and outline a number of gold anomalous sub-areas for follow up work.
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 mineralisation 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 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 with existing mineral resources.
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 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 Rukwa project is substantially more advanced than Kibo's existing 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
16 September 2013
Corporate and Designated Adviser
River Group
