Kibo Mining Plc Haneti Geophysics Final Report (8082S)

TIDMKIBO

RNS Number : 8082S

Kibo Mining Plc

13 July 2015

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")

13 July 2015

Haneti Nickel Project: Airborne Geophysical Data Interpretation Results: Significant Depth Extent and Strike Length of Ultramafic Complex with Two New Mafic-Ultramafic Zones

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 the final report from an independent Airborne Geophysical Data Interpretation carried out over its Haneti project in central Tanzania. The results from the preliminary findings were announced on the Company's RNS dated 24 June 2015.

Highlights

-- The final report confirms the location, strike extent and internal structure of two newly interpreted composite mafic-ultramafic zones extending significantly the previously known "footprint" of the Haneti-Itiso Ultramafic Complex (HIUC);

-- The newly outlined mafic-ultramafic zones, with strike lengths of approximately 30 km (Southwest Zone) and 10-20 km (Northwest Zone) occur to the Southeast and the Northwest of the central 80 km long (strike length) HIUC respectively and may represent folded repetitions and fault off-set extensions of the HIUC;

-- Modelling of the high magnetic anomaly over the Mihanza drill prospect shows that the magnetic susceptibility increases with depth and the prospective rocks extend to 800 m which indicates the potential for a significant volume of nickel prospective target rock at this location alone;

-- The data from the geophysical study will continue to be evaluated both in-house and by the Company's consultants to assist with geological modelling, new ground acquisition exploration targeting and exploration programme design.

Louis Coetzee, Chief Executive Officer of Kibo Mining plc, said: "We are pleased to announce the completion of this phase of geophysical interpretation work at our Haneti project. The results emerging from our desktop studies, which commenced late last year, aimed to extract optimum benefit from our existing exploration database and the Tanzanian Government geophysical data which recently became available.

The interpretation and modelling has produced exciting results, showing the HIUC rocks occur over a far greater strike length than previously thought. This work enabled the prospectivity of Haneti for nickel sulphide mineralisation to be enhanced significantly, at minimum cost, and provides a more detailed picture of the sub-surface extent and geological structure. This will assist us in implementing a more focused drilling programme."

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 27(th) 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 prospective 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, now with Western Geophysics (Pty) Ltd. (having recently moved from Spinifix Geophysics (Pty) Ltd.) 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 HIUC be modeled which will assist with more focused targeting for follow up exploration and definition of drill targets. In addition to the preliminary results previously announced in the Company's RNS of the 24(th) June, the final interpretation report has provided more detailed in-fill interpretation work as well as presenting the results of 3D inversion modeling on one of the Company's priority drill targets at Mihanza Hill.

The integrated interpretation results now show that the areal extent of the known sub-outcrop of the HIUC can now be significantly extended into areas where it was not previously mapped. The principal interpreted extensions occur to the Southwest and the Northeast of the central known 80 km strike extent of the HIUC. The Southwest Zone extends over a strike length of 30 km and is up to 6 km wide. It shows similar tight folding on the highly magnetic interpreted ultramafic bands as is seen on the magnetic signature of the central HIUC and is also similarly orientated in a Northwest-Southeast direction. The Northeast Zone appears to be part of a different structural terrane where its dominant strike trend is East-West and is interpreted as comprising domains of tightly folded mafic-ultramafic rocks with strike lengths of approximately 10 km to 20 km. The tight folding and folding within the now extended HIUC suggests that it comprises similar age, once continuous bands of mafic-ultramafic rocks subsequently highly deformed and folded by orogenic processes.

The high magnetic anomaly over the Mihanza drill target was modeled using a 3D inversion modeling technique to better understand how the magnetic signature over the prospect varies with depth. The model indicates the magnetite (the principal mineral that creates a magnetic signature in rocks) content appears to have been deposited in an en-echelon pattern and appears to increase with depth (increase in magnetic susceptibility), most noticeably from 300 m to the modelled depth of 800 m. The implications of these results is that there is a considerable "root" to the Mihanza ultramafic outcrop which points to a large volume of rock that could have positive implications for the differentiation of nickel sulphide rich magmas and provides a large volume of nickel prospective target rock at this location alone.

This geophysical study has generated a large number of processed images for magnetic, gravity and radiometric data which will continue to be evaluated both in-house and by the Company's consultants to assist with geological modelling, new ground acquisition exploration targeting and exploration programme design. While the interpretation just completed made most use of the magnetic data as it is the most appropriate, from that available, for Ni-Cu-PGM style targeting, the other geophysical data will continue to be interrogated to assist the exploration effort over the Haneti region for nickel, gold and lithium related pegmatite mineralisation.

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 areal 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.

Contacts

 
                     [phone]   Kibo Mining           Chief Executive Officer 
   Louis Coetzee                           plc 
------------------  -------------------  --------------------  ------------------------ 
 Andreas Lianos      [phone]   River Group           Corporate Adviser 
                                                                 and Designated Adviser 
                                                                 on JSE 
------------------  -------------------  --------------------  ------------------------ 
 Jon Belliss         [phone]      Beaufort Securities   Broker 
                      8300                 Limited 
------------------  -------------------  --------------------  ------------------------ 
 Oliver Morse        [phone]      RFC Ambrian           Nominated Adviser 
                                           Limited               on AIM 
------------------  -------------------  --------------------  ------------------------ 
 Daniel Thöle   [phone]       Bell Pottinger       Investor and Media 
                      2500                                       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, the Mbeya Coal to Power Project ("MCPP"), 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 20(th) 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

 
 
                                                  Cut-                      Metric                    Gold       Contained 
               Material                            off       Specific       Tonnes      Short         Grade        Gold 
     Area       Type          Classification      (g/t)      Gravity         (t)        Tons          (g/t)    Ounces (troy) 
=========  =============  ==================  =========  ============  ============  ============  ========  =============== 
     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 
 =============  ============================  =========  ============  ============  ============  ========  =============== 
Central         Total          Indicated         0.40        2.77         2,732,000     3,012,000     1.168          103,000 
=========  =============  ==================  =========  ============  ============  ============  ========  =============== 
 
     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 
 =============  ============================  =========  ============  ============  ============  ========  =============== 
Central         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 
=========  =============  ==================  =========  ============  ============  ============  ========  =============== 
 
       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 
  ==========================================  =========  ============  ============  ============  ========  =============== 
    Imweru Property           Combined 
     Total                     (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 Central and 25 g/t at Imweru East, the cut-off grade is based on a gold price of US$1,200 and a 90% metallurgical recovery is assumed in calculation of cut-off grade. A base case of 0.40 g/t has been selected.

** Classification of Mineral Resources incorporates the terms and definitions from the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) published by the 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     East Zone        East Zone          Total 
                                                 South            Mid           North 
---------------------------  -------------  --------------  -------------  -----------------  ------------ 
     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 19(th) 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 17(th) 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 31(st) 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

13 July 2015

Corporate and Designated Adviser

River Group

This information is provided by RNS

The company news service from the London Stock Exchange

END

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