Kibo Energy PLC

Earnings Release • Sep 2, 2014

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RNS Number : 5039Q

Kibo Mining Plc

02 September 2014

Kibo Mining Plc

(Incorporated in Ireland)

Registration Number: 451931

(External registration number: 2011/007371/10)

Share code on the JSE: KBO

Share code on the AIM: KIBO

ISIN: IE00B61XQX41

("Kibo" or the "Company")

02 September 2014

Interpretation and Evaluation of Imweru Exploration Results Delivers Further Strategic Options for Development of Imweru

Highlights

·     Near term production may be possible from Imweru, subject to required feasibility work, and mine planning

·     Imweru holds sufficient existing JORC compliant gold resources to support production

·     Confidence that additional exploration will add to the resource inventory

·     Mineralisation appears suitable for traditional processing methodologies

Kibo Mining plc ("Kibo" or the "Company") , the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce an update for shareholders with regard to the Imweru project, the Company's flagship gold project within the Lake Victoria Goldfields region of Tanzania. 

In line with previous announcements, the Company's principal operational focus during recent months has been the progression of the Rukwa Coal to Power project and negotiations with a strategic partner for that project. Matters pertaining thereto continue to progress, as stated in the last market update dated 21 August 2014.

The progress at Rukwa has not been the only area of development within the Company with active, cost effective work being  undertaken to further assess and evaluate all the Company's gold, nickel, coal and uranium project portfolios. In particular, considerable internal review work has been undertaken to evaluate the Company's flagship Imweru gold project, in the Lake Victoria Goldfields. Imweru currently has a JORC compliant gold resource of 550,000 ounces (495,000 ounces currently attributable to Kibo). See Tables 1 and 2 below for Technical Detail.

Kibo recognises that the market, and those with a commercial interest in the type of project that Imweru represents, are keen to see the project developed in a manner that enables the earliest effective commercialisation.

Consistent with  the Company's strategy, Kibo is also keen to see commercial development of its projects, whether by way of  the Company owning and operating producing assets, or by disposal of assets on favourable terms. The Company also recognises that whether the ultimate direction is production or sale, commercialisation of interests moves Kibo toward self-financing status, thus reducing reliance on the market for financing of activities. 

Kibo's recent work has therefore concentrated on a full internal review of historic Imweru exploration data to identify the optimal route for further development. This internal review, which is ongoing, has been undertaken by the Company and  validated by two independent technical consultants which confirm the Company's review findings.

The review has concluded that the exploration work undertaken to date and the resource data gathered from this work demonstrate the potential viability of early gold production from the Imweru project.

The review has demonstrated  the following key elements for the Imweru Project:

·     Imweru holds sufficient existing JORC compliant gold resources to support production.

·     There is a high degree of confidence that additional exploration will add to the resource inventory to supplement existing resources and extend prospective mine life.

·     Mineralisation appears suitable for traditional processing methodologies and that feed ore would be suitable for a variety of processing options.

·     Significant localised infrastructure exists, recognising the considerable quantity of gold exploration and mining activities already undertaken in the region.

·     Subject to necessary feasibility work, and mine planning, it may be possible to produce gold from Imweru in the near term.

As indicated above, Kibo has a number of value crystallisation options for the Imweru Project and we are currently considering the optimal strategy, and will update shareholders as appropriate.

Whilst this strategic review continues the Company hasalready initiated a number of selective and cost efficient work steps to further understand the mineralisation and the metallurgy thereof, which will be required when optimising potential future gold production activities.  These steps form an integral part of feasibility study work that ordinarily is undertaken before mine planning can be finalised.

Louis Coetzee CEO of Kibo Mining said: "The board of Kibo Mining have full confidence in the potential of the Imweru Project which was acquired in 2013. 

The board are delighted with the review findings and notably that this resource potentially could be accelerated into early production, with the significant value generation that this would deliver to the Company and its shareholders.  Kibo intends to report regularly with regard to continuing developments at Imweru, alongside news from Rukwa, as we move to value crystallisation at the Coal to Power project."

Kibo Mining - Notes to editors

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania's largest mineral right portfolios, including the - Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold), and Pinewood (Coal & Uranium) projects.

Its projects are located both 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.

Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.

Updates on the Company's activities are regularly posted on its website www.kibomining.com 

Contacts

Louis Coetzee	+27 (0) 83 2606126	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	+27 (0) 83 4408365	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss Abigail Wayne	+44 (0) 20 3693 1470	Hume Capital Securities Plc	Broker
Oliver Morse Trinity McIntyre	+61 8 94802500 +61 8 94802500	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lydia Eades	+44 (0) 203 772 2500 +44 (0) 203 772 2500	Bell Pottinger	Investor and Media Relations

Technical data

Table 1 below presents a table showing the resource estimates in the JORC Code resource categories at the base case economic cut-off grade for the reporting of the resource of 0.4 g/t Au for the Imweru Project. The table is taken from the JORC-compliant Report by Tetra Tech EBA.

Table 1

Area	Material Type	Classification	Cut- off (g/t)	Specific Gravity	Metric Tonnes (t)	Short Tons	Gold Grade (g/t)	Contained Gold Ounces (troy)
Central	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
Total	Indicated	0.40	2.77	2,732,000	3,012,000	1.168	103,000
Central
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
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
Imweru Property Total		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
Combined (inf+ind)	0.4	2.79	14,954,000	16,485,000	1.143	550,000

* Total estimates are rounded, based on composites capped at 26 g/t gold at Imweru Centraland 25 g/t at Imweru East, the cut-off grade isbased on a gold price of US$1,200 and a 90% metallurgical recovery is assumed in calculation of cut-offgrade. A base case of 0.40 g/thas been selected.

** Classification of MineralResources incorporates the terms and definitions from the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) published bythe Joint Ore Reserve Committee (JORC)

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 Project, 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.

Kibo's 90% attributable interest in the Imweru Mineral Resources are shown in Table 2 below

Table 2

Area	Material Type	Classification	Cut- off (g/t)	Metric Tonnes (t)	Gold Grade (g/t)	Contained Gold Ounces (troy)	% Gold Ounces attributable to Kibo	Total Gold Ounces attributable to Kibo
Central	Total	Indicated	0.40	2,732,000	1.168	103,000	90%	92,700
Total	Inferred	0.40	9,569,000	1.051	323,000	90%	290,700
East	Total	Inferred	0.40	2,653,000	1.449	124,000	90%	111,600

Imweru Property Total	Indicated	0.4	2,732,000	1.168	103,000	90%	92,700
Inferred	0.4	12,222,000	1.137	447,000	90%	402,300
Combined (inf+ind)	0.4	14,954,000	1.143	550,000	90%	495,000

Review by Qualified Person

Information in this announcement that relates to the Imweru mineral resources is taken from the report titled "Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent Persons Report" dated February 17th 2014 (the "Report"). The Report states a JORC-compliant 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 extensive 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 has also been reviewed by Noel O'Keeffe, P.Geo, who is a Member of the Institute of Geologists of Ireland. Noel O'Keeffe is Exploration Director of Kibo. Noel O'Keeffe has more than five years' relevant experience in the style of mineralisation and type of deposit under consideration.

Johannesburg

02 September 2014

Corporate and Designated Adviser

River Group

This information is provided by RNS

The company news service from the London Stock Exchange

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