Positive Phase 1 Drilling Results From Imweru

Kibo Mining Plc

(Incorporated in Ireland)

Registration Number: 451931

(External registration number: 2011/007371/10)

Share code on the JSE: KBO

Share code on the AIM: KIBO

ISIN: IE00B61XQX41

("Kibo" or "the Company")

 

Date: January 14, 2014

 

Positive Phase 1 Drilling Results From The Imweru Gold Project

 

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; JSE AltX: KBO) the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania is pleased to announce that it has now received all Phase 1 drilling results from its Imweru project, located in the Lake Victoria Goldfields of northern Tanzania.The drill programme which was completed in late November 2013, comprised 21 drill holes for a combined total of 3,265 m of reverse circulation (RC) and diamond drilling (DD).

 

·     Gold mineralisation was intersected in 19 of the 21 holes drilled.

 

·     Best intersections include:

 

ü 2.08 metres  @ 11.37 g/t Au (Hole IDD001)

ü 7.00 metres @ 1.68 g/t Au (Hole IDD002)

ü 8.86 metres @ 1.70 g/t Au (Hole IDD002)

ü 4.56 metres @ 1.93 g/t Au (Hole IDD002)

ü 4.75 metres @ 3.25 g/t Au (Hole IDD003)

ü 7.00 metres @ 3.69 g/t Au (Hole IRC022)

o  Including 2.00 metres @ 8.20 g/t Au

ü 3 metres @ 9.02 g/t Au (Hole IRC023)

ü 18 metres @ 1.67 g/t Au (Hole IRC023)

o  Including 5.00 metres @ 4.90 g/t Au

ü 6 metres @ 2.14 g/t Au (Hole IRC026)

ü 5 metres @ 1.57 g/t Au (Hole IRC027)

ü 4 metres @ 3.09g/t Au (Hole IRC027)

 

·     New mineralised zones were intersected which have not been incorporated in the  previous resource estimate and should contribute to an increase in the updated resource estimate

 

·     Mineralisation remains open down dip and along strike

 

·     The Company is now awaiting completion of an independent update of the existing resource statement, prior to carrying out a Phase 2 drill programme.

 

Louis Coetzee, C.E.O. of Kibo commented:

 

"The drill results from Imweru exceed our expectations and confirm not just the continuation of the Imweru mineralised zones between previously drilled locations but new mineralised zones at depth. These results improved our confidence levels in the potential to significantly increase both the quality and quantity of the current resource on the project. We now look forward to producing an updated JORC-compliant resource estimate before proceeding to the next development phase of the project"

 

Table 1 below presents drill hole details and a summary of mineralised intersections.

 

 Drill Hole Intersection Summary Table

 

Hole ID	Dip	Azimuth	End of Hole Depth (m)	From (m)	To (m)	*Down Hole Interval (m)	**Gold Grade (g/t)	Comments
IDD001	-60	0	250	89	91	2	1.26
				150	151.05	1.05	0.86
				216	217	1	0.62
				232.85	234.93	2.08	11.37	Includes 1.15m @ 24g/t (uncut)
IDD002	-60	0	250	17	18	1	1.95
				97.61	101	3.39	1.99	Includes 0.7 5 m @ 7.73 g/t
				104.99	106	1.01	1.06
				125	126	1	0.75
				136	143	7	1.68
				155.5	164.36	8.86	1.70
				171	172	1	0.52
				177.13	181.69	4.56	1.93
				183	184	1	1.89
				193	194	1	0.77
IDD003	-60	180	250	196.25	201	4.75	3.25
IRC016	-60	0	151	31	32	1	1.49
				86	88	2	2.73
IRC017	-60	0	149	104	106	2	1.02
				124	125	1	5.41
				142	145	3	1.63
IRC018	-60	0	151	92	93	1	2.10
				117	118	1	0.65
				138	139	1	0.78
IRC019	-60	0	80	No significant intersection
IRC020	-60	0	150	No significant intersection
IRC021	-60	0	151	36	37	1	0.74
				59	61	2	1.07
				75	76	1	0.79
				129	132	3	2.27
				146	147	1	0.59
IRC022	-60	0	173	57	58	1	0.83
				116	118	2	1.97
				135	136	1	1.15
				155	162	7	3.69	Includes 2 m @  8.20 g/t Au
IRC023	-60	0	150	24	25	1	2.15
				108	111	3	9.02	Includes 1m @ 211 g/t (uncut)
				118	136	18	1.67	Includes 5m @  4.90 and 1m @ 46.20 (uncut)
				135	136	1	0.63
IRC024	-60	0	150	51	52	1	0.59
				81	89	8	055
				85	86	1	0.51
				88	89	1	1.97
				138	139	1	5.36
				147	148	1	2.49
IRC025	-55	180	150	66	67	1	6.10
				73	74	1	0.53
				81	82	1	0.85
				89	90	1	3.92
				125	126	1	0.52
				139	140	1	0.98
				141	142	1	0.63
IRC026	-55	180	150	37	43	6	2.14	Includes 1m @ 7.35 g/t
				70	72	2	1.61
				82	83	1	0.99
				145	146	1	4.07
IRC027	-55	180	150	17	19	2	0.54
				41	46	5	1.57	Includes 1m @ 6.89 g/t
				50	52	2	1.21
				96	100	4	3.09	Includes 2 m @ 5.83 g/t
				108	109	1	0.65
				146	147	1	1.67
IRC028	-55	180	150	52	56	4	0.79
				71	72	1	1.06
				139	140	1	0.56
				141	142	1	0.55
IRC029	-55	180	150	17	18	1	0.52
				29	36	7	0.58	Includes  1 m @ 1.35 g/t, 1 m @ 1.06 g/t  and 1 m @ 1.32 g/t
				35	36	1	1.22
				41	42	1	1.34
				52	53	1	0.52
				102	103	1	0.57
				125	126	1	1.28
				143	144	1	1.22
IRC030	-55	0	142	94	95	1	2.08
				121	124	3	0.67
				133	134	1	1.08
IRC031	-55	0	100	17	18	1	1.66
				40	41	1	0.56
				65	66	1	1.83
IRC32	-55	0	118	54	55	1	2.30
				69	73	4	0.53
				72	73	1	1.29
IRC033	-55	0	100	89	90	1	2.06

 

*Down hole interval widths have not been interpreted as true widths and further detailed modelling and interpretation of the drill results will be required to establish in more detail the geometry of the mineralised shear zone.

**A lower cut-off grade of 0.5 g/t has been used in presenting the mineralised intervals. Internal dilution within reported intervals does not exceed core lengths of 3m @ 0.1 g/t.  Gold sample values exceeding 20 g/t have been cut to 20 g/t in calculating the mineralised intervals and the uncut single sample gold grades are shown in the comments column where applicable. All gold values shown are the weighted average for the respective intersections and are rounded to two decimal places.

 

Technical Notes 

 

Details of Drilling

A programme of reverse circulation ("RC") and core ("DD") drilling comprising 21 holes ( 3 DD and 18 RC) totalling 3,265 metres was undertaken to infill drill and test the depth continuation of the previously drilled Imweru Central Mineralised Zone ("ICMZ") on Kibo's  Imweru project located approximately 35 km west of the town of Geita in northern Tanzania. The ICMZ forms part of a larger mineralised corridor on the project extending over 10 km along strike for which an existing NI 43-101 compliant Inferred gold resource of 629,000 gold ounces has been estimated from drilling by previous operators (refer resource statement below).

 

The recent drilling was completed over a strike length of 2.3 kilometres with holes angled at 55 to 60 degrees to the north or south and drilled to down hole depths of between 80 and 250 metres. The three holes (IDD001 to IDD003) were collared as RC holes within the weathered horizon but changed to DD holes from their intersection of fresh rock at depths of 98.9 metres,78 metres and 90 metres respectively to their final depths of 250 downhole metres. The drill programme was designed to provide in-fill drilling along the strike of the ICMZ as well as targeting deeper mineralisation to previously identified intersections (>150 downhole metres). Table 1 above presents final drill hole details and results. A lower cut of grade 0.3 g/t Au and a higher cut-off grade of 20 g/t Au was used in compiling the mineralised intersections shown on Table 1 and gold values are rounded to two decimal places. A map showing the drill hole locations and representative cross sections can be found on the Company's website at http://kibomining.com. The results of the exploration campaign will be used to produce an updated geological model and mineral resource estimate that is currently underway.

 

Discussion of Results

 

The drilling results exceed company expectations and demonstrated both the on-strike continuity of the ICMZ modelled from previous drilling programmes and the existence of new mineralised zones. The infill drilling has resulted in drill hole spacing of approximately 50m along the strike of the mineralisation which should provide for a more robust and improved resource estimate to be produced.

 

The results from  holes IRC016 to 018, 020 to 021 and DD hole IDD001 in the western part of the ICMZ  show mineralised intersections consistent with widths, grades and down hole locations encountered in previously drilled neighbouring holes confirming the  continuity of gold  mineralisation in the western part of the ICMZ. Significantly the drilling results in these holes indicate some new mineralised zones not previously intersected the best of which is the 3 metres @ 1.63 g/t Au from 142 metres to 145 metres in IRC 017. Additional narrower previously undetected gold mineralised zones are also indicated from the results both to the north and south of the currently modelled extent of the ICMZ.

 

The results from holes IRC019, 022-025 and DD hole IDD002 further along strike to the east confirm and extend the mineralisation encountered from previous drilling and suggest mineralised zones to be dipping to the south at both shallow angles of about 45 degrees  and sub-vertically. The higher grade and width intersections in IRC023 are particularly noteworthy (3 metres @ 9.02 g/t Au and 18 metres @ 1.67 g/t Au). These intersections contain 1 m high grade samples assaying 211 g/t Au and 46.20 g/t Au which have been cut to 20 g/t Au to give the more conservative intersection grade as shown in Table 1). A comparison of holes IRC019 and IRC022 shows that IRC019 may not have been drilled sufficiently deep to intersect mineralised zones at >100 metres down hole depth subsequently drilled in IRC022. The possibility of some shallower dipping mineralised zones may have positive implications for an open-pit mine design should  the company determine the project has merit to proceed to preliminary economic studies.

 

The results from holes IRC026 to 029 and DD hole ID003 in the central part of the ICMZ confirm that the mineralised zones dip steeply to the north along this section. The drill results taken together confirm a broad mineralised envelope between down hole depths of approximately 30 metres to150 metres containing scattered 1 to 6 metre higher grade zones of 0.5 to 3 g/t Au. Best higher grade intersections include 6 m @ 2.14 g/t in IRC026, 4 m @ 3.09 g/t in IRC027 and 4.75 m at 3.25 g/t in IDD003. The results from holes IRC030 to 033 in the eastern part of the ICMZ also confirm narrow mineralised intervals of mostly 1 m in width with grades in the range 0.5 to 2 g/t Au. similar to that encountered in previous drilling. These narrow intersections confirm continuity of the mineralised gold envelope which remains open-ended to the east.

 

The mineralised intersections within all the holes are within variably oxidised granododiorite and diorite which is strongly foliated and sheared with weak to moderate disseminated pyrite and trace chalcopyrite. Other alteration includes chlorite, sericite, carbonate and quartz vein stockwork and silica flooding the former becoming more intensive in association with the gold mineralised zones. Preliminary interpretation suggests that the gold mineralisation is carried in quartz veins and quartz vein stockworks while the overall geometries of the mineralised stockworks is controlled by moderate to steeply dipping shears and faults showing variable orientations to both the north and south across the mineralised zone. Work is on-going in modelling the mineralisation in 3D to better understand the detailed geometry of the mineralised zones and controls on mineralisation in order to plan the next drilling phase.

 

The Company is now integrating these recent results with those from previous drilling to produce an updated resource estimate to JORC standard and to determine the most appropriate next phase of development for the Imweru project planned for the first half of 2014. It should be noted that the ICMZ represents only 2.5 km of the potential 10 km strike length of gold mineralised geology on the project.

 

Sampling, Analyses and Quality ControlProcedures

 

The drilling was undertaken by Layne Drilling from Mwanzaand supervised by the Company's Tanzanian exploration staff 

under the directionof Mzuri Exploration Services Exploration Manager Graham Norton and project geologist Smith Jordan.

 

RC drill samples were collected at 1 metre down-hole intervals from surface. Each 1 metre RC sample was weighed, homogenised and sub-sampled on-site by riffle splitting to produce approximately a 1.5 kilogram sample for laboratory submission. DD core was removed from site under strict Company supervision to the nearby project camp site.  DD core was halved by electric diamond saw with one core half submitted for analyses and the other half left in the core box for reference. DD sample intervals were a nominal 1 metre but varied in some instances at the core logging geologist's discretion. Standards, duplicates and blanks were inserted in all sampling stream in compliance with the Company's quality control procedures. Samples were dispatched to the ALS Chemex ("ALS") preparatory laboratory in Mwanza under the Company's chain of custody procedure by Company personnel. Field sample rejects (RC) and drill core are stored in a locked container at the Company's field camp under security guard protection.

 

The drill samples for analyses were dried, weighed, sieved/jaw crushed, riffle split and pulverised at ALS facility to produce a 50 g sub-sample for fire assay analyses and 1 gram for multi-element analyses. Sub-samples were dispatched to ALS laboratory in Johannesburg where the analyses was carried out. Laboratory standards, duplicates and blanks are analysed with each sample batch analysed in accordance with the laboratory's quality control procedures. On-going monitoring of quality control samples and a review of the final quality control report for the drilling found no discrepancies.

 

Kibo Mining - Notes to editors

 

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania's largest mineral right portfolios, including the Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold), and Pinewood (Coal & Uranium) projects.

 

Its projects are located both 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.

 

Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.

 

Updates on the Company's activities are regularly posted on its website www.kibomining.com 

 

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
Daniel Thöle	+44 0207 8611606	Bell Pottinger	Investor and Media Relations

 

Kibo - gold exploration projects

 

The Lake Victoria project covers a gold prospective licence portfolio in Tanzania's premier gold mining region, the Lake Victoria Goldfield, has been recently enhanced by the addition of two brownfield gold projects: Imweru and Lubando. Both projects have NI 43-101 compliant gold resource.

 

TABLE1: IMWERU MINERAL RESOURCE SUMMARY-BASECASE*
Category	Measured Resource	Indicated Resource	Inferred Resource
Resource (t)	-	-	17,649,900
Grade (g/t)	-	-	1.11
Grade (oz/ton)	-	-	0.032
Total Gold (oz)	-	-	629,6000

*Numbers are rounded. Composites capped at 25 g/t gold. Cut-off grade of 0.5 g/t gold based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.

 

Review by Qualified Person

 

Historic information in this announcement that relates to the Imweru mineral resources is taken from the report titled "Technical Report on the Imweru property (Updated), Mwanza, Tanzania" dated March 1, 2010" (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. Fier is 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 and is a "Qualified Person" for reporting gold resources to the NI 43-101 Standard.  New information contained in this announcement that relates to exploration results, mineral resources or ore reserves has been reviewed by Noel O'Keeffe, PGeo, who is a Member of the Institute of Geologists of Ireland. Noel O'Keeffe is a Exploration Director of Kibo. 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.

 

Johannesburg

14 January 2014

Corporate and Designated Adviser

River Group