Kibo Mining Eyes Pact with Lake Victoria to Create Tanzania Gold JV

By Alex MacDonald

LONDON--Tanzania-focused miner Kibo Mining PLC (KIBO.LN) said Thursday it has entered into a preliminary pact with Australia-based Lake Victoria Gold Ltd. to combine their respective Imweru and Imwelo gold projects in Tanzania.

The joint venture, which has yet to be named, would have a combined resource base of about 755,300 gold ounces at 1.5 grams of gold per ton of rock with potential to increase it to more than 1 million ounces in a relatively short time frame.

The joint venture would aim to produce 50,000 ounces of gold a year within 12 to 18 months after being formed and would then target 100,000 ounces of gold output annually within 24 to 30 months.

Both projects are located in northern Tanzania, about 35 kilometers west of AngloGold Ashanti Ltd.'s (ANG.JO) Geita Mine, which had a resource base of 23 million gold ounces at 4 grams of gold per ton of rock prior to mining.

Kibo Mining shares rose 7.9% to 5.125 pence a share, resulting in a market capitalization of GBP18 million or $26 million.

-Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

June 02, 2016 03:40 ET (07:40 GMT)

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