Technical Report Confirms Imweru Upside Potential

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")

 

February 24^th, 2014

 

Technical Report on the Imweru Gold Project Confirms Resource Upside Potential

 

Highlights

·      Independent JORC-compliant resource report on the  Imweru Gold Project received

·      Report includes a revised JORC-compliant resource estimate reflecting recent drilling results and updated economic and geologic factors 

·      Significantly improved confidence in the geological model and the resource base 

·      Confirmation of potential expansion of resource base through further  drill programmes

·      High priority drill targets identified on regional ground holding

·      Recommended two phase work program incorporating further resource definition drilling, testing of the priority regional targets and preliminary scoping study work

 

 

Kibo Mining plc ("Kibo" or the "Company") , the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, has received an independent JORC-compliant resource report ("the Report") for its Imweru project, located in the prolific Lake Victoria Goldfields of northern Tanzania.The Report incorporates the results from the Company's recently announced Phase 1 drilling results at Imweru (refer to previous RNS dated 14 January 2014). The Report was prepared by Canadian consultancy group Tetra Tech EBA on behalf of the Company, and contains the following key data:

 

·      39% increase in total estimated combined  Indicated and Inferred gold resource ounces to 426,000 oz (12.3 million tonnes at 1.08 g/t, 0.4 g/t cut-off) over the previous estimate for the Imweru Central Mineralised  Zone ("ICMZ") where the recent drilling was carried out

 

·      24% of the 426,000 oz newly estimated total gold resource at IMCZ  is now categorised in the  higher confidence Indicated category, with the remaining 323,000 oz. (9.6 million tonnes at 1.05 g/t, 0.4 g/t cut-off) in the Inferred category

 

·      Total estimated Indicated and Inferred gold resource at Imweru now stands at 550,000 oz. ( 15.0 million tonnes at 1.14 g/t, 0.4 g/t cut-off)

 

·      Improved understanding of the shear hosted gold mineralisation at Imweru. Phase 1 drilling highlights significant potential to increase the quantity and quality of the resource

 

·      Additional high priority gold drill targets identified from review of the Company's extended ground holding in the Geita region

 

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

 

"We are delighted to announce receipt of this report which confirms our previous statement that the drill results from Imweru exceeded our expectations. This will allow Kibo to implement a focussed and specialized exploration campaign on specific targets at Imweru to effectively enhance its resource. We are confident moving into the next phase of the project and its near term commercialization. The independent recognition of high quality drill targets within the Kibo ground holdings in the Geita region bodes well for our strategy to build a significant mineable gold resource inventory in this region, close to existing gold mining infrastructure. I look forward to providing further updates in due course."

 

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	Hume Capital	Broker
Stuart Laing	+61 8 94802500	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lydia Eades	+44 (0) 207 8611606 +44 (0) 207 8613126	Bell Pottinger	Investor and Media Relations

 

 

Technical data

 

Table 1 below presents a table showing the new resource estimates in the JORC Code resource categories at the base case economic cut-off grade for the reporting of the resource of 0.4 g/t Au. The table is taken from the JORC-compliant Report by Tetra Tech EBA.

 

Table 1

 

Area	Material Type	Classification	Cut- off (g/t)	Specific Gravity	Metric Tonnes (t)	Short Tons	Gold Grade (g/t)	Contained Gold Ounces (troy)
Central	Laterite	Indicated	0.40	2.50	131,000	144,000	1.785	8,000
	Saprolite	Indicated	0.40	2.50	706,000	778,000	1.387	32,000
	Bedrock	Indicated	0.40	2.89	1,895,000	2,089,000	1.043	64,000
	Total	Indicated	0.40	2.77	2,732,000	3,012,000	1.168	103,000
Central
	Laterite	Inferred	0.40	2.50	685,000	755,000	1.317	29,000
	Saprolite	Inferred	0.40	2.50	1,047,000	1,154,000	1.040	35,000
	Bedrock	Inferred	0.40	2.89	7,838,000	8,640,000	1.029	259,000
	Total	Inferred	0.40	2.82	9,569,000	10,548,000	1.051	323,000
East	Total	Inferred	0.40	2.70	2,653,000	2,925,000	1.449	124,000
Imweru Property Total		Indicated	0.4	2.77	2,732,000	3,012,000	1.168	103,000
		Inferred	0.4	2.79	12,222,000	13,473,000	1.137	447,000
		Combined (inf+ind)	0.4	2.79	14,954,000	16,485,000	1.143	550,000

 

* Total estimates are rounded, based on composites capped at 26 g/t gold at Imweru Centraland 25 g/t at Imweru East, the cut-off grade isbased on a gold price of US$1,200 and a 90% metallurgical recovery is assumed in calculation of cut-offgrade. A base case of 0.40 g/thas been selected.

** Classification of MineralResources incorporates the terms and definitions from the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) published bythe Joint Ore Reserve Committee (JORC)

 

Pursuant to the terms of an inherited agreement with Barrick East Africa Exploration LTD (BEAL), Kibo currently has an effective 90% interest in the Imweru Project, with Barrick having a 10% carried interest up to a decision to mine atr which point they have to contribute or dilute to a 2% net smelter royalty. BEAL also has a first right of refusal pursuant to which they can buy the 90% interest in the project at an agreed market related value after completion of a Bankable Feasibility Study. Kibo remains the operator of the project.

 

Kibo's 90% attributable interest in the Imweru Mineral Resources are shown in Table 2 below

 

  Table 2

Area	Material Type	Classification	Cut- off (g/t)	Metric Tonnes (t)	Gold Grade (g/t)	Contained Gold Ounces (troy)	% Gold Ounces attributable to Kibo	Total Gold Ounces attributable to Kibo
Central	Total	Indicated	0.40	2,732,000	1.168	103,000	90%	92,700
	Total	Inferred	0.40	9,569,000	1.051	323,000	90%	290,700
East	Total	Inferred	0.40	2,653,000	1.449	124,000	90%	111,600

 

Imweru Property Total	Indicated	0.4	2,732,000	1.168	103,000	90%	92,700
	Inferred	0.4	12,222,000	1.137	447,000	90%	402,300
	Combined (inf+ind)	0.4	14,954,000	1.143	550,000	90%	495,000

 

Resource Estimate

 

Tetra Tech EBA ("Tetra Tech"), acting as independent geological consultants for the Company reviewed the recent drilling results from the Imweru Central Mineralized Zone (ICMZ) together with historic drill results from the Imweru East Mineralised Zone (IEMZ), to produce an updated resource model and estimate for gold mineralisation at the Imweru project. In preparing its final report, Tetra Tech also reviewed the previous resource report titled "Technical Report on the Imweru property (Updated), Mwanza, Tanzania" dated March 1, 2010. This report was NI 43-101 compliant and was prepared for Great Basin Gold Rusaf Gold Limited by EBA Engineering Consultants Ltd (now part of Tetra Tech EBA). 

 

The updated resource estimate (total of Indicated and Inferred resource) at the ICMZ shows an increase from 10,858,724 tonnes at 0.87 g/t (305,779 oz.) to 9,249,000 tonnes at 1.29 g/t (383,000 oz.) of Au at a comparable cut-off grade of 0.5 g/t. representing a 25% increase in gold ounces and a 48% in grade over the previous estimate. At the new base case economic cut-off grade at 0.4 g/t based on a gold price of $1,200 per oz (0.5 g/ cut-off grade and $750 per oz and were used in the previous estimate), the estimated resource for the ICMZ is 12,301,000 tonnes at 1.076 g/t (426,000 oz.) which represents an overall 39% increase in resource ounces from the previous estimate. Additionally, 103,000 oz of this new resource of 426,000 oz is classified in the Indicated category with the remaining 323,000 in the Inferred category.

 

The IEMZ did not receive any additional drilling during the recent Phase 1 drill programme and the previously reported resource estimate at the IEMZ of 6,791,174 tonnes at 1.48 g/t (323,806 oz) is being restated. TheIEMZ was restated using the existing block model (Fier, 2010) reflecting an adjustment to alower cut-off for gold grade, from 0.5 g/t to 0.4 g/t and to account for changes in mineral tenement holdings in the period preceding Kibo's acquisition of Imweru. The re-stated resource estimate at the IEMZ zone is now 2,653,000 tonnes of Inferred resource at 1.449 g/t (124,500 oz). The IEMZ restatement also took into account specific geological complexities in the IEMZ which could impact on the future economic viability of the IEMZ as a standalone project.

 

Resource Modelling

 

The resource estimate was completed by Tetra Tech EBA using Dassault Systemes GEMS geological modelling software using information from 801 drill holes, of which 94 were used to define mineralization solids which constrained a block model.  The data was interpolated into the block model using the inverse distance weighted (IDW) method and was constrained by the mineralized solids. The Imweru mineralised zones have been modelled as numerous, semi-continuous quartz and calcite filled brittle-ductile shear structures that have variable strike direction with an overall average strike of approximately 080 degrees. Numerous zones of continuous mineralization are noted to occur with within the main structures often exhibiting oblique southwest-northeast trend to the overall strike. The shear zones have sub-vertical dip extent fluctuating from a maximum of approximately 70 degrees to the south to 70 to the north. Local variations in both the strike and dip in the vein orientations may be associated with local pinch and swelling in the mineralized thickness. Diorite has been modelled as the predominant host to the shear structures, and where it is unmineralized it is considered as waste material. Grade modelling for the Imweru Central zone was generated from cross sectional interpretation using raw drill hole assay grades and a 0.2 g/t Au cut-off threshold to create 3-dimensional triangulated mineralization solids. These mineralized solids were used as the basis for calculation of internal 1 metre composites. Hard boundaries were used in the grade model interpretation as these are suited to the nature of Archean gold shear and vein mineralization and are supported from observations of drill core and RC cutting reviewed at Imweru Central. The mineralization solids were limited to a minimum of 2 metres width. The deep weathering profile was modelled for Imweru Central and broadly divided into the laterite and saprolite sequences based on logged drillhole lithologies. Gold mineralization intersected by drilling within these units has been included in the model under the assumption of mineral continuity from the unweathered bedrock horizon through the weathering profile. Statistical analyses of specific gravity (S.G.) results from drill core measured as part of the core logging process allowed the representative S.G. values shown in Table 1 to be allocated to the mineralised zones.

 

Review by Qualified Person

 

Information in this announcement that relates to the Imweru mineral resources is taken from the report titled "Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent Persons Report" dated February 17^th  2014 (the "Report"). The Report states a JORC-compliant 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 extensive 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 has also been reviewed by Noel O'Keeffe, P.Geo, who is a Member of the Institute of Geologists of Ireland. Noel O'Keeffe is Exploration Director of Kibo. Noel O'Keeffe has more than five years relevant experience in the style of mineralisation and type of deposit under consideration.

 

Johannesburg

24^th  February  2014

Corporate and Designated Adviser

River Group