TIDMKIBO
RNS Number : 7621R
Kibo Mining Plc
01 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")
01 July 2015
Shareholder Operational Update: Second Quarter 2015
Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX:
KBO), the Tanzania focused mineral exploration and development
company, is pleased to announce an operational update to outline
the current status of company activities and the extent of progress
made to build the value of the Company's assets for
shareholders.
QUARTER HIGHLIGHTS AND CEO COMMENTS
Kibo Mining has entered into a dynamic phase in its development
with material progress being made across the asset portfolio.
Highlights of this development progress in the second quarter of
2015 include:
- Signing of the Joint Development Agreement ("JDA") between
Kibo and SEPCOIII, enabling the Mbeya Coal to Power Project
("MCPP") to be taken to the next level of development;
- MCPP (Mining): Definitive Mining Studies confirmed the
extremely robust and feasible nature of the Rukwa Coal Mine, with
the Pre-feasibility Study one month from completion;
- The MCPP (Power) development, bolstered by the signed JDA, has
progressed greatly in terms of partner participation and advanced
planning;
- The MCPP is fast approaching financial close, and significant
time has been spent on negotiation and planning in this regard;
- Work on the Imweru project pre-feasibility study has commenced;
- The Haneti project exploration objectives for 2015, after
analysis of the latest high resolution aerial geophysical data,
were confirmed and the proposed drill programme is ready for
deployment. It is planned to implement the programme immediately
after the imminent Rukwa Geotechnical Drill Programme;
- The two joint venture programmes (Morogoro and Pinewood) have
commenced with the Morogoro exploration programme. A Morogoro soil
sample batch that was in storage was submitted for laboratory
analysiss for which results are awaited. A review and update of the
current Pinewood Project technical reports is in progress for
further field work.
- Operational expenses for the reporting period remained within
approved budget with no over-expenditure;
- Financings undertaken in the quarter provided a solid
underlying cash position within the company, covering operational
expenditure for the medium term;
- Negotiations with third parties to participate in or acquire
various assets held by the Company continued. Successfully
concluding such negotiations will bolster and/or protect the
Company's underlying cash position and further increase investor
confidence in Company projects.
Louis Coetzee, C.E.O. of Kibo Mining commented:
"We are very pleased to report to shareholders the tremendous
progress the Company has made on shareholders' behalf during recent
months despite the continuing turbulence in the natural resources
equity environment.
Kibo has made strong progress in 2015, bolstered by the
financial support demonstrated by an early conversion of warrants
by Metal Tiger plc in January and thereafter by the additional
funds raised from secondary placings. This update is designed to
assist shareholders' understanding of the progress that is being
made, the current position of Kibo and also the forward plans we
intend to execute to further build the value of the company.
It is worth mentioning that we are participating in a race to
value creation and in this regard two factors are prevalent.
-- Firstly, that Tanzania as a country is eager to see the
development of its natural resources and is highly supportive of
those companies investing properly in this regard. The
opportunities are immense and we are rapidly building the value of
our in-country interests to reflect this.
-- Secondly, that the bearish natural resource climate is
potentially nearing its conclusion and a turnaround in fortunes is
likely due. We are positioning Kibo in a manner that will draw
investor interest and capital as that recovery ensues. When the
recovery starts in earnest, there will be many companies vying for
attention and we want investors keenly focussed on Kibo right from
the start.
In the case of Kibo we feel attention by investors is warranted.
In the MCPP we have a world class opportunity to develop a major
strategic power generation asset in Tanzania. The Kibo programme is
however much more robust than the MCPP only, with interests in
strategic precious, base metal and energy projects, lending
diversity and depth to our business model and enabling investors to
gain access to the substantial mineral resource opportunities of
Tanzania.
Whilst share price pressures are frustrating, shareholders
should note that Kibo is progressing at some pace, and there will
be news flow in the coming days, weeks and months that will further
demonstrate the progress being made."
KIBO MINING PLC COMPANY PROJECT OVERVIEW
Mbeya Coal to Power Project ("MCPP")
- The required technical work for the project development phase
of the MCPP is nearing completion:
ü The mining PFS is currently 87% complete;
ü The Power PFS was completed by end of FY 2014. All planning
and preparation for the next phases of the PFS is complete;
ü The process to facilitate permitting, certification and
licensing intensified during the reporting period, with increased
interaction and negotiations with TANESCO and the Ministry for
Energy and Minerals ("MEM"). In this regard, an extensive
submission was made to the MEM outlining the strategic gap between
power demand, strategic planning objectives and current installed
capacity in the TANESCO Power System Master Plan;
ü The Environmental Assessment scope of work and solicitation of
contractors for this work component is complete. The formal
environmental assessment will take place in two phases, namely
Mining and Power;
Mining
The mining portion of the MCPP development remained on track and
on schedule during the reporting period. The following are the key
highlights:
- Phase 2, Stage 1, Definitive Mining Feasibility Study, (Mining
PFS) commenced during this reporting period (RNS 1 April 2015);
- A successful site visit to the Rukwa Coal mine site by Mining
Consultants Minxcon, who act as the Qualified Persons ("QP") to the
MCPP (Mining component), confirmed the conclusions and assumptions
published in the Phase 1, Stage 1, Definitive Mining Feasibility
Study Report, and approved commencement of Phase 2 of Stage 1;
- The trade-off studies performed as part of the PFS identified
potential for significant operating expenditure ("OPEX")
reductions, thereby increasing project value and profitability
potential. The highlights of these studies included:
ü A 12 hour daylight shift cycle will be followed
ü Primary and Secondary Transport will be performed by
vehicle;
ü The total overburden and inter-burden is minable through
free-digging by Hydraulic Excavator. Blasting is therefore not
required for waste stripping and will potentially decrease OPEX
significantly;
ü The Surface Continuous Miner was proved to be a feasible
mining method;
ü Mine Infrastructure lay-out finalised;
- The PFS is still below budget, on schedule and on target for
release by end of July 2015.
Power
- The planned continuation of the Definitive Power Feasibility
Study ("Power DFS") was briefly interrupted by the development
period required to ensure that the JDA reaches unconditional status
by end of Q2. Substantial technical and developmental work was
however done in the meantime which included:
ü Defining the full Scope of the Power Feasibility Study
ü Defining roles and responsibilities for the Power Feasibility
Scope of Work:
Ø Integrated Project Structure, of which a first appointment, a
Project Coordinator, was made.
Ø Owner's Team
Ø Owner's Engineer
Ø EPC Contractor
Ø Independent Quantity Surveyor
ü Scope of the Feasibility Level Environmental Impact Study.
ü Technical integration with the Mining Definitive Feasibility
Study
- It is expected that the Power DFS will immediately resume full
operational status upon completion of the above process. The
following main aspects will be covered during this phase:
ü Coal and ash analyses
ü Site selection study
ü Limestone resource study
ü Power station basic design
ü Prepare, evaluate and negotiate EPC technical
specification
ü Prepare, evaluate and negotiate O&M technical
specification
ü Feasibility study report sections
ü Detailed Power Station Design
ü Ash Disposal Study
ü Water Management Study
ü Geotechnical Investigations
ü Grid Study
ü Roads
ü Permanent Staff Accommodation
Imweru
The continuation of the Imweru Definitive Feasibility study was
approved and initial work is underway and will be fully implemented
once adequate funding has been secured.
Desktop work on the project is currently in process after
completion of a successful site visit by Minxcon, Kibo's
independent consultants on the project.
Lake Victoria Programme - Excluding Imweru
This project remains under a Care and Maintenance programme. No
operational work was completed during the reporting period.
Morogoro Programmes
Due to the very low prospectivity of the Morogoro North Project
it was discontinued and its license package was surrendered to the
Ministry for Energy and Minerals in its entirety.
.
The Morogoro South Project (now called the Morogoro Project) was
included in a Joint Venture with Metal Tiger PLC on January 19,
2015. An exploration programme was designed comprising the
following broad activities:
- Follow up detailed soil geochemistry over targets identified
in Matombo region (Block A Strike Extension) during the 2012 field
programme
- Exploration pits and trenches in the Matombo area
- First pass exploration drilling in the Matombo area, Block A (Estimated 1,200m)
- Detailed geological mapping to continue in all areas
- Reconnaissance mapping the areas west of Morogoro
- Stream sediment sampling and rock chip sampling in the areas west of Morogoro
An additional, reduced operational programme was accepted and
approved, comprising the laboratory analysiss of an existing batch
of samples in storage. In order to further define the southern
extension of "Block A" gold mineralization, a limited follow up
sampling program and an assessment and preliminary reconnaissance
mapping exercise on PL6622/2010 and PL8299/2012 was also submitted
for approval. The sample batch in storage was submitted for
laboratory analyses and results are awaited. No other operational
activities were approved during the reporting period.
Haneti Programme
Based on the findings and recommendations from previous studies,
including a geochemical interpretation study completed in Q1 2015,
a follow - up two-phase exploration programme was developed and
approved.
Approved Exploration Programme
- Phase 1: Analysis and interpretation of newly acquired high
resolution aerial geophysical data.
- Phase 2: Upon completion of phase 1, and provided that the
interpretation of the data supports the planned objectives, the
implementation of an exploration drill programme will follow.
Operational Results to Date:
Following positive results from a geochemical interpretation of
the project, the Haneti exploration programme was provisionally
approved for the implementation of Phase 1, only. After acquisition
of the geophysical data, which is currently being analysed and
integrated into the existing geological database, the following
preliminary results were obtained (as announced per RNS on 24 June
2015):
- High resolution magnetic and gravity data show the interpreted
areal 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 to be 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 of
most 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.
Pinewood
No operational work was completed during the reporting period.
However a review and update of the historic technical reports
prepared in respect of Pinewood and surrounding Uranium deposits is
being undertaken to further refine and define next exploration
campaigns.
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
Lucinda Alderson 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
(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 MCPP 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
Material Cut- Specific Metric Gold Contained
Area Type Classification off Gravity Tonnes Short Grade Gold Ounces
(g/t) (t) Tons (g/t) (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*
-------------------------------------------------------------------------------------------------------
East Zone East Zone
Category West Zone South East Zone North Total
Mid
--------------------------- -------------- ------------- ------------- ------------- -------------
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
01 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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