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")
24 June 2015
Haneti Nickel Project- Airborne Geophysical Data Interpretation Results
Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce that it has received positive preliminary results from an independent Airborne Geophysical Data Interpretation carried out over its Haneti project in central Tanzania. The interpretation used recently acquired high resolution data acquired from the Geological Survey of Tanzania (see RNS of the 13th March 2015). Data processing and interpretation was carried out by Spinifex Geophysics of Perth, Western Australia.
Highlights
· High resolution magnetic and gravity data show the interpreted aerial extent and geological structure of the Ni-Cu-PGM prospective Haneti-Itiso Ultramafic Complex (HIUC) confirming its continuity over 80 kilometers of strike length;
· A number of other areas have been identified within the HIUC showing similar magnetic and gravity signatures as the known ultramafic outcrops e.g. Mihanza and Mwaka Hills, and which can be confidently interpreted as new areas of sub-cropping ultramafic rocks and targets for follow up exploration;
· The interpretation results resolves some of the internal geological structure of the HIUC, showing it is comprised of a number of attenuated and folded ribbons of ultramafic rocks within the general granite-gneiss country rock which will assist geological interpretation and help focus exploration on areas with best potential;
· The interpretation has identified a new zone of ultramafic rocks over a strike length of approximately 30 km similar to the HIUC, which will be a new target zone for follow up exploration;
· The results will allow Kibo to further rationalise the Haneti project by relinquishing areas where no ultramafic target rocks prospective for Ni-Cu-PGM style mineralisation are indicated;
Louis Coetzee, Chief Executive Officer of Kibo Mining plc, said: "We are extremely pleased with the results emerging from this geophysical interpretation, which significantly enhanced our understanding of the geological structure of the Haneti project at minimal cost. The results will allow us to identify further priority areas for follow-up work and from which additional drill targets similar to those already defined at Mihanza and Mwaka Hills for Ni-Cu-PGM style mineralisation will be developed.
The latest results reconfirm our strong belief in the significant potential of Haneti and its considerable prospectivity. We believe Haneti can generate significant value for shareholders through future work programmes, which amongst others includes a priority first phase drill programme and potential subsequent project partnerships.
We are pleased to see the Haneti project come into its own and take its place as a driver of shareholder value alongside our Mbeya Coal to Power Project and our Imweru Gold Project. Further updates across the Company's portfolio are expected to follow shortly."
Airborne Geophysical Survey Interpretation Results
Introduction
Kibo acquired high resolution airborne geophysical survey data (magnetic, gravity and radiometric) from the Geological Survey of Tanzania (GST), covering its wholly owned Haneti project in central Tanzania. Following an initial in-house review, the data was forwarded to the Perth based geophysical consultants Spinifex Geophysics for detailed processing and interpretation to assist with the further understanding of the geology of the project and generate new target areas particularly for Ni-Cu-PGM style mineralisation. The decision to proceed with this work followed on from the results (see RNS of the 27th January 2015) of an independent geochemical interpretation report which identified the Mihanza Hill area as a prime drill target for Ni-Cu-PGM style mineralisation, and by implication the potential to locate other similar targets within the project on strike and adjacent to Mihanza Hill within the nickel sulphide prospect Haneti-Itiso Ultramafic Complex (HIUC).
Detailed Results
Digital processing of the geophysical data to produce a number of high resolution images over the Haneti project has enabled a detailed geological interpretation to be carried out by independent geophysical consultant Steve Massey, Spinifix Geophysics of Perth, Western Australia. Specifically, the results have permitted a more detailed picture of the sub-surface extent and geological structure of the Ni-Cu-PGM prospective Haneti-Itiso Ultramafic Complex (HIUC) be modeled which will assist with more focused targeting for follow up exploration and definition of drill targets. The interpretation confirms that the HIUC extends over a strike length of up to 80 km as a series of broadly northwest-southeast trending attenuated and folded ribbons of ultramafic rocks within the general granite-gneiss country rock. Kibo's exploration programmes to date have concentrated on the central 25 km of this nickel prospective rock sequence (equivalent to approximately 31% of the entire HIUC strike length) where it has already established drill targets at Mihanza Hill and Mwaka Hill that it plans to drill during 2015. The geophysical signatures of the outcropping Mihanza and Mwaka targets can be clearly seen in the interpretation and have helped to infer extensive zones of sub-cropping ultramafic rocks of similar composition through the HIUC. This will permit the identification of the priority areas for follow-up mapping, soil sampling, and ground geophysical surveys to develop other drill targets similar to Mihanza & Mwaka. A notable feature from the interpretation is the complexly folded internal structure of the HIUC which is most clearly interpreted from the magnetic data and extends the sub-cropping footprint of the HIUC over a wider area than previously interpreted. This feature is common in similar nickel prospective ultramafic sequences in East Africa and, while making the geology more complex, may result in secondary enrichment resulting from re-mobilisation of primary sulphides as seen in other Ni-Cu-PGM style deposits globally.
In addition to assisting with a more detailed resolution of the HIUC, the geophysical interpretation has also indicated a new zone of northwest-south east trending mafic-ultramafic rocks in the south-west of the surveyed block over 30 km strike. These rocks provide the Company with a new target zone prospective for Ni-Cu-PGM style mineralisation similar in structure to the HIUC.
The Company is continuing to work with Spinifix to carry more detailed modelling and interpretation work on the geophysical data to extract as much information as possible pertaining not just to the Ni-Cu-PGM potential but also the gold and lithium-niobium-tantalum potential of the project. Specific modelling on the Mihanza and Mwaka drill targets will be undertaken prior to drilling, to optimally locate the proposed drill holes on these prospects. This approach is consistent with our strategy to obtain the maximum information from our exploration database on Haneti by focussed desk studies carried out both in-house and by experienced consultants prior to recommencing field exploration including drilling.
An additional benefit from this geophysical interpretation is that it will permit the Company to continue to consolidate the Haneti tenement package.
Background Technical Information
During 2012/2013 the GST commissioned high resolution aero-geophysical surveys over parts as central and southern Tanzania. The surveys comprised the collection of magnetic, gravity, radiometric and electromagnetic data. The electromagnetic data (VTEM Survey) was only carried out over selected areas within the survey blocks. The magnetic and radiometric surveys were flown on a line spacing of 250 m while the gravity was flown on line spacing of 2.5 km. The surveys were carried out by Geotech Airborne Limited and Sander Geophysics Limited and data quality control was done by the British Geological Survey in collaboration with the GST. Pleasingly, the survey blocks covered the Company's nickel, gold and lithium prospective Haneti project and survey data has recently been made available for purchase by private companies.
This data is of significantly better quality than the 1970's regional data already available for Tanzania as a result of improvements in data acquisition techniques, closer line spacing and the inclusion of airborne gravity and electromagnetic data which were previously unavailable. This new geophysical data, when combined with the Company's extensive existing field exploration database, is now enabling a more detailed understanding of the geological structure of Haneti including an improved interpretation model of the sub-surface extent of HIUC which comprises the target rock formation for Ni-Cu-PGM style mineralisation. The geophysical interpretation is assisting the Company to target areas for follow up infill and extension sampling as recommended in the recent geochemical interpretation report (see RNS 27 January 2015) as well as helping with a better understanding of the existing drill targets particularly at Mihanza and Mwaka Hills prior to drilling.
It should be noted that the Mihanza Hill target in particular has been identified from this recent geochemical interpretation report as showing surface soil and rock sampling results in key elements (Ni ,Cu, Cr & PGMs) characteristic of a mineralised "chonolith type" intrusion and is considered a priority drill target. The nature of this "chonolith" model of mineralisation is that the host intrusion often shows a complex pipe-like geometry with a relatively small subsurface footprint and comprising a number of irregular mineralised bodies within the mineralised district. Careful interpretation of the airborne geophysical data should assist with refining this model and potentially identifying similar type targets to Mihanza within the HIUC, which is currently interpreted to extend up to 8o kilometres along strike.
As the aerial extent of the geophysical survey data covers the entire Haneti project as well as peripheral areas, the interpretation is assisting the Company with acquiring a greater understanding of the regional geological setting of the project with regard to its overall prospectivity for not just Ni-Cu-PGM style mineralisation but also for gold and pegmatite related lithium mineralisation for which the Company has also had encouraging indications from sampling to date.
Maps showing the location of the prospects discussed above and a preliminary geophysical interpretation map of the central Ni-Cu-PGM prospective area can be found on the Haneti project page of the Company's 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) 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 the Mbeya project 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 MCPP 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 also 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 content of this announcement including resource reports and the references to them.
Johannesburg
24 June 2015
Corporate and Designated Adviser
River Group
