Kibo Mining Plc Mbeya Definitive Mining Feasibility Study Results (3030M)

TIDMKIBO

RNS Number : 3030M

Kibo Mining Plc

20 January 2016

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: IE00B97C031

("Kibo" or "the Company")

20 January 2016

Mbeya Definitive Mining Feasibility Study: Results from Geotechnical Drill Programme Received

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce the results from Phase 1 of Stage 2 of the Mbeya Definitive Mining Feasibility Study (MDMFS). This is a critical work stream of the final stage of the broader Mbeya Coal to Power Project (MCPP), Mining Feasibility Study.

Key highlights

 
      --   820 meter geotechnical diamond core drill programme confirmed 
            slope angles of pit design to be well within safety requirements; 
      --   Programme results provided unexpected opportunity to further 
            improve and optimize pit design; 
      --   Programme results confirmed decision not to do any river 
            diversion as viable and prudent; and 
      --   Restatement of Mbeya Coal Resource commences. 
 

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the latest results and also with the overall progress of the MDMFS. Since announcing the very first set of results from the concept study and with every announcement since, the MCPP has consistently demonstrated that it is a project with considerable financial and technical substance. This will stand us in good stead during the coming weeks when we work on finalizing the power purchase agreement and other commercial agreements associated with the MCPP."

Background MDMFS: Phase 1

Kibo and its advisers, Minxcon Projects, are now in receipt of the final results for Phase 1 of Stage 2 of the MDMFS, which was completed during Q3 2015. The work mostly comprised of a geotechnical drilling programme on the Mbeya coal mine site (please see the RNS dd. 15 October 2015). The bulk of the work done during Phase 1, Stage 2, of the MDMFS consisted of an 820 meter diamond core drill programme. This mission-critical component of the MDMFS was required to confirm the ground conditions in and around the final pit position, which in turn determines the final slope angles in the pit design. The final slope angles are an absolute pre-requisite for final and detailed mine design. The better than expected results from the geotechnical programme not only confirmed the slope angles but also made it possible to further improve the detailed mine design that will be completed during the MDMFS. It is expected that this improvement in the detailed mine design will make a positive contribution at a technical level and will also further enhance the overall economics of the Mbeya Coal Mine.

The drill programme comprised a total of 8 holes, accurately angled and directed at specific strategic positions to penetrate the pit hanging wall at depths varying from 95 - 120m and totalling 820m. Geotechnical samples were collected from the recovered core and submitted for laboratory analysis and these results now form the basis of the geotechnical input parameters for the final mine design.

An immediate next step in the MDMFS will involve the restatement of the Mbeya coal resource. This will be based on the technical work that was done on the coal resource during the feasibility studies to date, the additional geological data gained from the geotechnical drill programme, as well as the data from earlier exploration drilling, sampling and laboratory analysis that has not yet been incorporated in the Mbeya coal resource statement.

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 
--------------------  -------------------  --------------------  ------------------------ 
                                              Bell Pottinger        Investor and Media 
   Daniel Thöle     [phone]                                 Relations 
     / Anna Legge              2500 
--------------------  -------------------  --------------------  ------------------------ 
 

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"), previously called Rukwa Coal to Power Project ("RCPP"), 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 
----------  -----------------  ----------  ------------- 

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