Haneti- Airborne Geophysical Data Acquisition

RNS Number : 3650H

Kibo Mining Plc

13 March 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")

 

Dated: 13 March  2015

Haneti Nickel Project- Airborne Geophysical Data Acquisition

Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce the Company has commenced an Airborne Geophysical Data Review in respect of the Company's Haneti Nickel Project.

Highlights

·    Recently flown high resolution aerial geophysical survey data acquired from the Geological Survey of Tanzania for the Haneti project

·    Detailed processing and interpretation of this data by a geophysical consultant experienced in Ni-Cu-PGM style mineralisation targeting, will now commence

·   Result of the work will assist with regional geological interpretation, help generate additional target areas for Ni-Cu-PGM style mineralisation and contribute to a better understanding of existing drill targets on the project prior to drilling

·   Data acquisition represents significant boost to exploration at Haneti as it represents a large cost saving relative to Kibo independently commissioning the flight survey.

Louis Coetzee, Chief Executive Officer of Kibo Mining plc, commented: "The Company's Haneti Nickel Project has delivered increasingly diverse and attractive results. Our main focus has been on identifying the potential for a large Nickel Sulphide deposit, however as outlined in previous announcements, Haneti is also evidently prospective for gold, PGMs, lithium and tantalum/niobium. 

The recently announced Geochemical Interpretation strengthened our confidence in the project significantly, which was borne from extensive previous exploration work on the ground.  Having access to this Airborne Geophysical Data will add considerably to our information about the project and enable us to conduct further project assessment, at minimal additional cost.

With historic exploration, Geochemical Interpretation and now Airborne Geophysical Data we are aiming to significantly enhance our understanding of the Haneti project and its considerable prospectivity. This will establish the basis from which significant value can be generated for shareholders through future work programmes and potential project partnerships.

We are pleased to advance the Haneti project in parallel to our work with prospective development partners at our Rukwa Coal to Power Project and our Imweru Gold Project.  Further updates across the Company's portfolio are expected to follow shortly."

Airborne Geophysical Survey Data Acquisition:

Kibo has acquired high resolution aerial geophysical survey data (magnetic, gravity, radiometric and electromagnetic) from the Geological Survey of Tanzania (GST), covering its wholly owned Haneti project in central Tanzania. It will now commission detailed processing and interpretation of this data from an experienced geophysical consultant to assist with the further understanding of the geology of the project and generate new target areas particularly for Nickel-Copper-PGM style mineralisation. The decision to proceed with this work follows the recently announced results (refer to RNS of the 27^th January 2015) from an independent geochemical interpretation report which identified the Mihanza Hill area as a prime drill target for Ni-Cu-PGM style mineralisation, and by implication the potential to locate other similar targets within the project on strike and adjacent to Mihanza Hill within the nickel sulphide prospect Haneti-Itiso Ultramafic Complex (HIUC).

Technical Information:

During 2012/2013 the GST commissioned high resolution aero-geophysical surveys over parts of central and southern Tanzania. The surveys comprised the collection of magnetic, gravity, radiometric and electromagnetic data. The electromagnetic data (VTEM Survey) was only carried out over selected areas within the survey blocks. The magnetic and radiometric surveys were flown on a line spacing of 250 m while the gravity was flown on line spacing of 2.5 km. The surveys were carried out by Geotech Airborne Limited and Sander Geophysics Limited and data quality control was done by the British Geological Survey in collaboration with the GST. Pleasingly, the survey blocks covered the Company's nickel, gold and lithium prospective Haneti project and survey data has recently been made available for purchase by private companies.

This data is of significantly better quality than the 1970's regional data already available for Tanzania as result of improvements in data acquisition techniques, closer line spacing and the inclusion of airborne gravity and electromagnetic data which were previously unavailable. This new geophysical data, when combined with the Company's extensive existing field exploration database, should enable a more detailed understanding of the geological structure of Haneti including an improved interpretation model of the sub-surface extent of HIUC which comprises the target rock formation for Ni-Cu-PGM style mineralisation. The interpretation  report will then better assist the Company to target areas for follow up infill and extension sampling as recommended in the recent geochemical interpretation report  (Refer RNS 27 January 2015) as well as helping with a better understanding of the  existing drill targets particularly at Mihanza and Mwaka Hills prior to drilling.

It should be noted that the Mihanza Hill target in particular has been identified from this recent geochemical interpretation report as showing surface soil and rock sampling results in key elements (Ni ,Cu, Cr & PGMs) characteristic of a mineralised "chonolith type" intrusion and is considered a priority drill target. The nature of this "chonolith" model of mineralisation is that the host intrusion often shows a complex pipe-like geometry with a relatively small subsurface footprint and comprising a number of irregular mineralised bodies within the mineralised district. Careful interpretation of the airborne geophysical data should assist with refining this model and potentially identifying similar type targets to Mihanza within the HIUC which is currently interpreted to extend up to 8o kilometres along strike.

As the aerial l extent of the geophysical survey data covers the entire Haneti project as well as peripheral areas, the interpretation should also assist with acquiring a greater understanding of the regional geological setting of the project with regard to its overall prospectivity for not just Ni-Cu-PGM style mineralisation but also for gold and pegmatite related lithium mineralisation for which the Company has also had encouraging indications from sampling to date.

Maps showing the location of the prospects discussed above can be found on the Haneti project page of the Company's website (www.kibomining.com).

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss Abigail Wayne	[phone]	Hume Capital Securities Plc	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lucinda Alderson	[phone]	Bell Pottinger	Investor and Media 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 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 Rukwa.

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 signed a MOU to enter into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has signed a MOU to enter 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

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

*Kibo holds 90% of the Imweru Mineral Resource

*   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/t has 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)

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*
Category	West Zone	East Zone South	East Zone Mid	East Zone North	Total
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

13 March 2015

Corporate and Designated Adviser

River Group

 

END

 

 

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