TIDMKIBO
RNS Number : 3080O
Kibo Mining Plc
08 February 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")
08 February 2016
Mbeya Coal to Power Project: Critical Next Step of Integrated
Feasibility Study Completed
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focussed mineral exploration and development
company, is pleased to announce that Phase 1 of the Mbeya Coal to
Power Project ("MCPP"), Integrated Bankable Feasibility Study
("IBFS"), has been successfully completed.
Key highlights
-- Successful integration of three primary MCPP feasibility study work streams;
-- Pivotal meetings with all key Government stakeholders completed; and
-- Formal appointment of Shangoni Management Services LTD as environmental consultant.
Louis Coetzee, CEO of Kibo Mining, said: "The completion of the
first phase of the IBFS is a critical step in the overall
feasibility work which is now progressing at pace. The four key
work streams, (MDFS, PDFS, EIA and IBFS) are all active and
progressing in parallel. This is in itself the strongest indicator
of the considerable momentum with which the feasibility work on the
MCPP is advancing, and fast nearing completion.
We took great care during the preceding stages of the MCPP
feasibility work to ensure that solid foundations are put in place
on which the MCPP can be developed. These would be particularly
important during the final stages of the feasibility work, when the
project is invariably subjected to stringent external stress tests.
During the past week the MCPP underwent its first significant
external stress test and withstood this with ease. This bodes well
for the intricate commercial and funding related negotiations in
the coming weeks and months."
Background IBFS: Phase 1
Before the MCPP can advance to financial close, it must first
deliver an appropriately competent IBFS that meets internationally
accepted technical and financial standards. The key contributors to
this integrated IBFS are the following:
1. Definitive Mining Feasibility Study ("DMFS")
2. Definite Power Feasibility Study ("DPFS")
3. Environmental Impact Assessment ("EIA") for both the Mbeya
coal Mine and the Mbeya Power Station
In recent announcements by the Company (please see the
announcements dated 05 November 2015, 14 December 2015, 07 January
2016 and 12 January 2016), the commencement of the DMFS and DPFS
was announced, followed by various updates on the progress in this
regard. As the critical contributors to the IBFS, these two studies
had to be implemented first, followed by the EIA, the third
critical contributor to the IBFS. With these three main
contributors to the IBFS well underway the next critical step was
to implement Phase 1 of the IBFS, which comprises the integration
of the three fundamental works flows mentioned above, to enable the
IBFS to be conducted in parallel to the DMFS, DPFS and EIA. During
a five-day work session in Tanzania that started on 31 January 2016
which was attended by Kibo as project sponsor and by the project
teams of Tractebel, MinXcon and Shangoni, the Company successfully
integrated the work flow of the main IBFS contributors and in doing
so also completed Phase 1 of the IBFS.
The work session referred to above involved critical
co-ordinating and planning meetings with all the key Government
departments and stakeholders concerned with the MCPP and included
amongst others the Tanzanian Ministry for Energy and Minerals,
TANESCO (national electricity utility company) and EWURA (regulator
- electricity and water). The work programme finally concluded with
an extensive technical site visit to the MCPP project site by all
the project teams mentioned above.
Contacts
+27 (0) 83 Kibo Mining Chief Executive
Louis Coetzee 2606126 plc Officer
------------------ ------------ --------------- -------------------
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
------------------ ------------ --------------- -------------------
Jon Belliss +44 (0) 207 Beaufort Broker
382 8300 Securities
Limited
------------------ ------------ --------------- -------------------
Oliver Morse +61 8 9480 RFC Ambrian Nominated Adviser
2500 Limited on AIM
------------------ ------------ --------------- -------------------
Daniel Thöle +44 (0) 203 Bell Pottinger Investor and Media
/ Anna Legge 772 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"), 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 and a 168,000oz NI 43-101
compliant gold Mineral Resource at the Lubando Project 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
---------- ----------------- ---------- -------------
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