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:IE00B97C0C31
("Kibo" or "the Company")
29 April 2015
SEPCO III Completes Successful Site and Country Visit to Tanzania
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to announce that, following the announcement of the Joint Development Agreement ("JDA") with SEPCO III (RNS dated April 20, 2015), Kibo hosted SEPCO III for a successful country and project site visit to Tanzania, from 23 April 2015 until 27 April 2015.
Highlights
· First and strategically most important condition precedent in SEPCO III JDA fulfilled
· Project site visit completed successfully, with all visit objectives met
The SEPCO III site visit included a visit to the RCPP mine and power plant site and surrounding areas and fulfilled a key condition precedent to the JDA. The visit also included plenary meetings with the Minister for Energy and Minerals as well as senior officials of the Ministry of Energy and Minerals and related departments. The key objectives of the site visit were:
1) To familiarise the SEPCOIII team with local in-country conditions and those related to operational and business conditions in Tanzania;
2) To physically visit the RCPP project site and to conduct an extensive on-site technical work shop;
3) To plan and finalize the scope of work required to successfully execute and complete Stage 2 of the RCPP Definitive Feasibility Study, i.e. delivery of an integrated Bankable Feasibility Study for the RCPP; and
4) To officially introduce SEPCO III to all the relevant Tanzanian Government departments and authorities as the Company's RCPP development partner.
The SEPCO III delegation comprised a team of commercial, financial and engineering specialists who engaged in various work and planning sessions with the Company's RCPP technical team that included senior representatives from Minxcon Projects (Pty) Ltd, and Aurecon South Africa (Pty) Ltd, the two professional consulting companies responsible for conducting all the feasibility work done on the RCPP to date.
Louis Coetzee, CEO of the Company, commented today: "The fact that we are able to provide the market with an update on the fulfilment of the most important condition precedent in the JDA so soon after it was signed, is strong confirmation that in SEPCO III Kibo has engaged a highly professional, competent and committed joint venture partner that is as serious as Kibo in pursuing the successful and timely delivery of the RCPP.
The site visit comprised five very productive days that totally exceeded our expectations in terms of progress made on all relationship levels associated with the JDA. This bodes well for the further development of the RCPP and we look forward to updating the market on further progress."
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 |
Elliot Hance | +44 (0) 207 382 8300 | Beaufort Securities Limited | Broker |
Oliver Morse | +61 8 9480 2500 | RFC Ambrian Limited | Nominated Adviser on AIM |
Daniel Thöle Lucinda Alderson | +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 1 below), and is developing a 250-350MW mouth-of-mine thermal power station with an established management team that includes Standard Bank as Financial Advisor. Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for Rukwa with an integrated Coal-Power interim study report to be released in the near term. On 20th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the RCPP 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 (See Table 2 below) and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) 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 Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including Lithium.
Kibo Mining further 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 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
Technical data
Rukwa Mineral Resource
Table 1 below presents a table showing the Mineral Resource estimate for the Rukwa Coal Project. The table is taken from an NI 43 101-Compliant Report by GEMECS (Pty) Ltd dated April 2012.
Table 1
RUKWA COAL RESOURCE SUMMARY- GEMECS (Pty) Ltd |
| SEAM | NI 43-101 | IN SITU |
SEAM | THICKNESS | CLASS | MILLION TONS |
S4 | 1.14 | Indicated | 2.17 |
S3U | 2.04 | Indicated | 6.92 |
S3L | 2.3 | Indicated | 12.63 |
S2 | 3.45 | Indicated | 23.43 |
S1U | 2.48 | Indicated | 7.34 |
S1L | 2.92 | Indicated | 17.4 |
S0 | 1.08 | Indicated | 1.44 |
Total Indicated Resources | | 71.34 |
S4 | 1.31 | Inferred | 1.38 |
S3U | 2.24 | Inferred | 2.94 |
S3L | 2.27 | Inferred | 3.86 |
S2 | 3.42 | Inferred | 7.94 |
S1U | 2.05 | Inferred | 6.5 |
S1L | 3.15 | Inferred | 12.83 |
S0 | 1.06 | Inferred | 2.6 |
Total Inferred Resources | | 38.05 |
TOTAL RESOURCES | | *109.39 |
*Kibo holds 100% of the Rukwa Mineral Resource
Imweru Mineral Resource
Table 2 below presents a table showing the Mineral Resource estimate for the Imweru Project at a base case economic cut-off grade for the reporting of the resource of 0.4 g/t. The table is taken from a JORC-Compliant Report by Tetra Tech EBA dated February 2014.
Table 2
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 |
*Kibo holds 90% of the Imweru Mineral Resource
* 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/t has 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)
Lubando Mineral Resource
Table 3 below presents a table showing the Mineral Resource estimate for the Lubando Project at a base case economic cut-off grade for the reporting of the resource of 0.5 g/t Au. The table is taken from an NI 43 101-Compliant Report by EBA Engineering Consultants Limited (now part Tetra Tech EBA) dated August 2009.
TABLE3: LUBANDO MINERALRESOURCE SUMMARY - BASECASE* |
Category | West Zone | East Zone South | East Zone Mid | East Zone North | Total |
Measured Resource | | | | | |
Measured Resource(t) | 107,900 | 4,880 | 16,900 | 54,440 | 184,150 |
Grade(g/t) | 1.69 | 2.52 | 1.72 | 2.48 | 1.95 |
Total Gold(oz) | 5,900 | 400 | 950 | 4,340 | 11,500 |
Indicated Resource | | | | | |
Indicated Resource(t) | 280,710 | 18,330 | 61,000 | 149,350 | 509,420 |
Grade(g/t) | 1.61 | 2.23 | 1.89 | 2.73 | 1.99 |
Total Gold(oz) | 14,500 | 1,300 | 3,700 | 13,120 | 32,600 |
Inferred Resource | | | | | |
Total Resource(t) | 1,090,000 | 65,470 | 209,340 | 535,330 | 1,900,140 |
Grade(g/t) | 1.27 | 1.56 | 3.34 | 3.13 | 2.03 |
Total Gold(oz) | 44,550 | 3,300 | 22,500 | 53,900 | 124,200 |
*Kibo holds 90% of the Lubando Mineral Resource
* Numbers are rounded. Composites capped at 10.85g/t gold. Cut-off grade of 0.5 g/t gold based on a gold price of US$850/oz and assumed 100% metallurgical recovery.CIM definitions were followed for Mineral Resources.
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 and Lubando Project (and thus a 90% attributable interest in the Imweru and Lubando Mineral Resources shown in Table 2 and 3 above), with Barrick having a 10% carried interest up to a decision to mine at which point they have to contribute or be diluted 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.
Review by Qualified Persons
The information in this announcement that relates to the Rukwa Coal Mineral Resource is taken from a report titled "Independent Technical Report for the Rukwa Coal Project, Mbeya Region, United Republic of Tanzania" dated 19th April 2012 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
Information in this announcement that relates to the Imweru Mineral Resource is taken from the report titled "Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent Persons Report" dated February 17th 2014 (the "Report"). The Report states a JORC-compliant Mineral 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 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 in this announcement that relates to the Lubando Mineral Resources is taken from a report titled "Technical Report on the Lubando property, Mwanza, Tanzania" dated 31st August 2009" (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. Fieris 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.
The Company's Exploration Director, Noel O'Keeffe has reviewed the resource reports and the references to them in this announcement.
Johannesburg
29 April 2015
Corporate and Designated Adviser
River Group
