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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”)
14 October 2014 Commencement of Definitive Feasibility Study on Imweru Gold Project
Highlights
•
Definitive Feasibility Study (“DFS”) for Imweru commences; •
Imweru holds sufficient existing JORC compliant gold resources to support production;
•
Imweru to enter production in the near to medium term, subject to feasibility study results; •
Both Kibo’s flagship projects now in early development; Kibo Mining plc (“Kibo” or the “Company”) , the mineral exploration and development company focused
on gold, nickel, coal and uranium projects in Tanzania, is delighted to announce the commencement of a
Definitive Mining Feasibility Study on the Imweru Gold Project (“Imweru”), Kibo’s flagship gold project
within the Lake Victoria Goldfields region of Tanzania. Imweru contains a total estimated Indicated
and Inferred gold resource of 550,000 oz. The Imweru DFS will run concurrent to the Rukwa Definitive
Mining Feasibility Study (which is already underway) and means that both the Company’s flagship projects
will now be in early development.
The decision to commence the Imweru DFS follows the conclusion of an internal optimization study of the
Imweru project. This study indicates that resource data gathered from previous exploration work is
sufficiently robust to support viable gold production from Imweru in the near to medium term, subject to
necessary feasibility work and mine planning.
Kibo has appointed Minxcon Projects (www.minxcon.co.za), to conduct the Imweru DFS which is
estimated to be completed within 12 months. This appointment officially commences the development of
the project. The Imweru DFS will be delivered in two clear stages, namely:
•
Stage1: This stage will comprise the Pre–feasibility Study (PFS), covering conventional pre-feasibility
elements associated with the development of a potential gold mine. The PFS will be delivered in two
phases to ensure systematic de-risking of the project:
ü Phase 1: Preliminary Economic Assessment (PEA) - a continuation of the ongoing assessment of
the Imweru project, aiming to confirm all technical and financial assumptions thus far and to define
future feasibility study deliverables.
ü Phase 2: PFS, aiming to further refine the results from the PEA, and to confirm the mining and
processing method, mine plan, and economics of the future Imweru Mine.
•
Stage 2: This stage will comprise the Definitive Feasibility Study (DFS), which will incorporate all the
work done during Stage 1. Stage 2 will aim to finalise the mine design as well as a bankable financial
model.
Phase 1, Stage 1 of the DFS, is scheduled for completion by early to mid-December 2014.
Kibo, consistent with its declared strategy, is keen to see commercial development of its projects, and the
Imweru Gold Project thus far indicates that:
•
it 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; and
•
significant localised infrastructure exists, recognising the significant gold exploration and mining
activities already undertaken in the region.
Louis Coetzee CEO of Kibo Mining said: "Announcing the Imweru DFS is a significant milestone for Kibo.
The Company will have both its flagship projects in early development and has now officially entered Stage
3 of its declared three-stage corporate strategy. Stage 1 focussed on the acquisition of projects with good
value propositions, Stage 2 focussed on the development of the acquired value propositions and Stage 3 will
focus on the realization of the value that was created during Stage 2. Of particular importance is the fact
that Rukwa and Imweru were brought to their current status amidst an extremely difficult market in which it
was and remains extremely difficult to access funding. This was achieved in accordance with the schedule
which was flagged in 2012 at the time Kibo’s new corporate strategy was announced.
Careful planning preceded the decision to commence with the Imweru DFS, to ensure that adequate
resources are in place to conduct and manage both studies simultaneously. Particular care was taken to
make sure that implementation of the Imweru study will not in any way affect work on the Rukwa Coal to
Power Project, which remains the Company’s number one priority”
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
Designated Adviser on JSE
Jon Belliss
+44 (0) 20 3693 1470
Abigail Wayne
Hume
Capital
Broker
Securities Plc
Oliver Morse
+61 8 94802500
RFC
Trinity McIntyre
+61 8 94802500
Limited
Ambrian
Nominated Adviser on AIM
and
Daniel Thöle
+44 (0) 203 772 2500
Lydia Eades
+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
Material
Type
Classification
Cutoff
(g/t)
Specific
Gravity
Metric
Tonnes (t)
Short Tons
Gold
Grade
(g/t)
Contained Gold
Ounces (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
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
Total
Inferred
0.40
2.82
9,569,000
10,548,000
1.051
323,000
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
Imweru Property
Inferred
0.4
2.79
12,222,000
13,473,000
1.137
447,000
Total
Combined
(inf+ind)
0.4
2.79
14,954,000
16,485,000
1.143
550,000
Area
Central
Central
East
* 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)
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
Cutoff
(g/t)
Material
Type
Classification
Total
Indicated
0.40
2,732,000
Total
Inferred
0.40
Total
Inferred
Central
East
Metric
Tonnes (t)
Gold
Grade
(g/t)
Contained
Gold
Ounces
(troy)
% Gold
Ounces
attributable
to Kibo
Total Gold
Ounces
attributable
to Kibo
1.168
103,000
90%
92,700
9,569,000
1.051
323,000
90%
290,700
0.40
2,653,000
1.449
124,000
90%
111,600
Indicated
0.4
2,732,000
1.168
103,000
90%
92,700
Imweru Property
Inferred
0.4
12,222,000
1.137
447,000
90%
402,300
Total
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 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
14 October 2014
Corporate and Designated Adviser
River Group