Haneti Nickel Project- Positive Geochemical Update

RNS Number : 1216D

Kibo Mining Plc

27 January 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: IE00B61XQX41

("Kibo" or "the Company")

 

Dated: 27  January 2015

Haneti Nickel Project- Positive Geochemical Update

Highlights

·     Mihanza Hill prospect ("Mihanza")  soil anomaly proves to be consistent with that expected for a significant Ni-Cu-PGE sulphide deposit

·     Key parameters of anomaly indicate a signature with the potential to represent a significant magmatic Ni-Cu sulphide source

·     Characteristics of Mihanza Ni-Cu anomaly suggests a possible "chonolith" intrusion which dramatically improves the probability of exploration success

·     Mihanza results validates and independently confirms the Ni- Cu- PGM potential of the Haneti project

Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce that it has received an independent geochemical interpretation report (the "Report") based on detailed analyses of its soil and rock geochemical over the nickel-copper-PGM Haneti project in central Tanzania. The report confirms the Mihanza area as a robust drill target with the potential to represent the surface expression of a significant Ni-Cu-PGE style sulphide deposit at depth. The work was carried out by consultant geochemist Dr. Nigel Brand Geoservices Pty Ltd of Perth Western Australia who has global experience interpreting geochemical data over nickel sulphide style mineralisation targets particularly in Australia and East Africa. 

The geochemical analyses were primarily based on soil and rock sampling results from Kibo's 2013 exploration programme at Haneti. This geochemical study is the first component of desktop based exploration data analyses that the Company is undertaking to extract maximum benefit from available geological, geochemical and geophysical data for the project before it commences the next phase of exploration which will include drilling of priority targets. Maps showing the location of the prospects discussed below can be found on the Haneti project page of the Company's website (www.kibomining.com).

Louis Coetzee, Chief Executive Officer of Kibo Mining plc, commented: " With this new report to hand the case for further exploration and development at Haneti is compelling. We aredelighted that the geochemical work undertaken has highlighted the nickel sulphide potential at Haneti and ratified historic exploration work and our own findings as previously announced.  Various additional work is underway to review the entire dataset from Haneti with a view to further improving our understanding. We are now confidently moving forward to enable rapid visible progress at Haneti, for the benefit of the company and our shareholders.  Further updates will follow."

Technical Discussion

Mihanza Prospect

The Report's most important finding is that the geochemical data for Mihanza strongly supports the view that this is a robust drill target with the potential to represent the surface expression of a significant Ni-Cu-PGE style sulphide deposit at depth. Mihanza together with Mwaka Hill (Mwaka) were previously identified from the results of the Company's exploration surveys to represent two well defined drill targets that it intends to test. In regard to the Mihanza target, the principal conclusions from the Report are:

•     Mihanza Hill forms a discrete, coherent and robust Ni-Cu-Cr (PGE) soil anomaly supported by rock chip data. This anomaly has developed on the gentle slopes and is not considered to be a function of a weathered topographic high

•     When benchmarked against another soil data set collected over a mineralized ultramafic complex in East Africa the Mihanza Hill data shows close similarities to the Cu and Cr distribution, higher in Pd and Ni 

·     Mihanza Hill forms a discrete, coherent and robust  nickel-copper-chromium soil anomaly, supported by rock chip data

·     The key parameters of this anomaly indicate a signature with the potential to represent a significant magmatic Ni-Cu sulphide source

•     Although limited the PGE soil data is anomalous and provides supporting evidence for a sulphide association

•     Gossanous rock chip samples lie within the zone of coincident Ni-Cu and strongly support the potential for Ni-Cu sulphides at Mihanza Hill

·     The Mihanza Hill anomaly is consistent with that expected for a significant Ni-Cu-PGE sulphide deposit

·    This is a drill ready target and the nature of the Mihanza Ni-Cu anomaly suggests a possible chonolith intrusion (see below) which dramatically improves the probability of exploration success 

The suggestion of a "chonolith" intrusion as the potential host to sulphide mineralisation at Mihanza is supported in the Report by the nature of the soil anomaly, the supporting rock sample data (grades of up to 13% nickel and 2.3 grams per tonne combined platinum & palladium have been previously reported at Mihanza) and its regional setting at the southeast edge of the Tanzanian Craton associated with deep crustal lineaments. Significantly, "chonolith" intrusions are recognised as important hosts to nickel sulphide mineralisation at  Glencore/Barrick's Kabanga nickel sulphide deposit (~58 million tonnes @ 2.6% Ni) located, ~ 670 km to the northwest of Haneti on the northwest margin of the Tanzanian craton. Among other major global chonolith associated nickel sulphide deposits are Norilsk (Russia) and Voiseys Bay (Canada).  The importance of recognising a chonolith intrusion the potential setting for any associated Ni sulphide mineralisation at Mihanza can be appreciated from the fact noted in the Report that there are 62 chonoliths reported in the world, 58 of them have mineralization of which 26 are mines and 9 are current projects. 

Mwaka Hill Prospect

The report findings for the Mwaka is that the Ni and weak Cu anomaly results probably reflect residual enrichment of nickel (laterisation process) in an underlying ultramafic rock on a topographic high and that  geochemical support  for an underlying sulphide body at depth is weak.  However, this interpretation is based on an interpretation of the geochemical results alone and does not consider the two EM conductors that have been identified from geophysical surveys carried out by the Company in 2012. These conductors indicate potential sulphide mineralisation at depth and sustain Mwaka as a viable drill target that will still require drill testing.

Other Areas

Similar to Mwaka, there is no strong evidence from the soil and rock geochemistry for Ni sulphide mineralisation associated with the Kwahemu-Yobo area along trend to the South, but the Report recommends that the sampling grids be expanded and infilled in this area to allow for a more comprehensive detailed analyses. Similarly the Report finds that the other prospects (Mihanza South Igari-Chini, Mwinditi, Mukulingu, Miti and Ndolonoti) need more detailed sampling in order to carry out the detailed geochemical analysis that was possible for Mihanza.

Regional Implications of Results

Based on the robustness of the Mihanza anomaly, the Report recommends continuing expansion and infill sampling over the other prospects and other areas along the Mihanza trend many of which have not yet been sampled at an adequate density to allow for the detailed interpretation possible at Mihanza. It is worth noting that approximately only 25 km (31%) of the 80 km strike of  nickel sulphide prospective Haneti Itiso Ultramafic Complex  has been sampled in detail to date.

This Report focused exclusively on the nickel sulphide potential of the Haneti project and as previously reported the gold and lithium/strategic mineral potential of the project has also been demonstrated and will be followed up as part of future follow on exploration programmes.

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 and Trinity McIntyre	[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 with an integrated Coal-Power interim study report to be released in the near term.

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, with Preliminary Economic Assessment study findings to be released in the near term.

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

27 January 2015

Corporate and Designated Adviser

River Group

 

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