Significant Anomaly Identified at Morogoro South P

RNS Number : 0735R

Kibo Mining Plc

14 November 2012

 

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")

Significant Anomaly Identified at Morogoro South Project

Dated: 14  November 2012

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO, AltX: KBO) the multi commodity exploration and development company focused on Tanzania, is pleased to provide an exploration update.  The Company has received results from its infill soil and stream sediment sampling at the Morogoro North and Morogoro South projects in central and south eastern Tanzania.

Highlights

·    Numerous gold anomalies have been defined by the soil sampling programme located above and adjacent to the Ruvu Nappe structure

·    These anomalies are significant gold bearing targets that will be trench sampled in early 2013 and drill tested later in the year

·    One of these anomalies extends over 0.3km², returned gold values up to 0.41g/t and remains open to the South (Block A)

·    A significant barite anomaly was also discovered during the soil sampling programme

Morogoro North

·    In fill gold-in- stream sediment sampling results from PLs 6717/2010 and 6598/2010 at Morogoro North show low values. 

Louis Coetzee  CEO of Kibo commented:

"These encouraging results have confirmed our belief that the Morogoro licences have the potential to contain a significant gold deposit.  The Morogoro South licence covers a 15km section of the Ruvu Nappe structure that has been demonstrated by this soil sampling programme to be an important control on the gold mineralisation.  With numerous targets generated we look forward to reporting the results of an extensive trenching programme and our planned maiden drill programme in 2013."

While infill stream sediment sample gold results over PLs 6717/2010 and 6598/2010 are low, these areas represent just a small part of the Morogoro North project and the company's sampling teams have already commenced sampling licences further north closer to the Handeni gold district where significant exploration success has been achieved in recent years. Kibo is optimistic  that with its on-going systematic field exploration programmes over the remainder of the Morogoro North project, more significant exploration results should be forthcoming.    

Operations Details

Introduction

Kibo completed a Stage 1 field exploration programme across all its projects during the first quarter of 2012 and the results were reported in the Company's operations update dated 21 June 2012. The results of a follow on programme at the Morogoro North and Morogoro South projects are now available resulting from further infill soil and stream sediment sampling undertaken by the Company's field teams during the second and third quarters of 2012. The purpose of this infill sampling was to further resolve the encouraging gold values  reported from the earlier programme by increasing the density of sampling points around soil and stream anomalous gold areas.

The following section describes in detail the recent exploration results. Maps to accompany this section can be found under the "Projects" menu on the Company's website www.kibomining.com.

Morogoro South

Stage 1 exploration results identified six areas of anomalous gold-in-soil results from wide spaced regional soil sampling lines. Eight  rectangular in-fill sampling blocks were completed over these six areas  and the sampling details are shown on the table below.

Block Name	Area (Km2)	Sample Grid Spacing (metres)	No of Samples
A	0.9	50  X 100	209
B	0.7	50  X 100	161
C	0.7	50  X 100	151
D	0.5	50  X 100	120
E	0.4	50  X 100	99
F	0.7	50  X 100	165
G	0.5	50  X 100	121
H	0.6	50  X 100	148
Total	5		1,174

The results for each sampled block are discussed below.

Block A

Block A is located close to the  northern border of PL 5625/2009 on the Ruvu Nappe, the key gold prospective geological structure identified on the Morogoro South project. The infill gold-in-soil results define a coherent N-S  trending anomaly extending over the length of the sampled area, up to 600 m in width and open-ended on  its South side. The  gold anomaly is defined by values in the range 20 to 100 ppb  with a maximum value of 414 ppb (0.414 g/t). The gold anomaly is strongly associated with anomalous arsenic (in the range 50-100 ppm) and has a weaker correlation with bismuth and antimony. 

Block B

Block B is located in the northern part of  PL 6541/2010 and was placed to follow up on a single point regional anomaly of 92 ppb gold. The in-fill soil sample results do not amplify or extend the anomaly significantly and just show some scattered low level single point values in the 10 to 20 ppb gold range. The multi-element geochemical data does however define a high barite anomaly over the sampled areas defined on values in the range 1,000 to 6,000 ppm. The significance of this high barite  remains to be evaluated and will be followed up during the next field programme.

Block C

Block C occurs on PL 5585/2009 and was positioned over three consecutive gold values in  the range 20 to 50 ppb  along a regional sample line from Stage 1 exploration. The infill results were disappointing and did not reproduce or extend the previously returned gold-in-soil values apart from a few scattered < 20 ppb values. Low level nickel anomalism from the mult-element geochemistry most likely reflects background values from basic gneisses which form the bedrock over the sampled area.

Block D

Block D is located 2.7 km south of Block A within PL 5625/2009 further south  along the Ruvu Nappe. It was sampled to follow up on some  low level 10-30 ppb gold values from Stage 1 exploration. The infill results do amplify the earlier anomaly and define a NNW-SSE trending low level anomaly over the 1 km length of the sampled block. Gold values are generally in the range 10-50 ppb with one maximum value of 229 ppb at the northern end of the grid. While the gold-in-soil values are not as high or as extensive as in Block A, they are significant as they indicate continued gold anomalism in this area further south  along the Ruvu Nappe. Similar to Block A, there is also an arsenic association with the gold anomaly although it is less well developed with a maximum value of  40 ppb.

Block E

Block E is located 2.2 km SSW of Block D within PL 5625/2009 and 4.5 km west of the main Ruvu Nappe thrust zone. It was placed to follow up on a singular regional gold anomaly of 33 ppb Au from Stage 1 exploration. The results were disappointing and did not replicate or extend the earlier anomaly. Some weak anomalism from the multi-element geochemistry  in barite, nickel, zinc and manganese most likely reflects background values of bedrock.

Block F

Block F is located in the southern part of PL 6541/10 and is located further south along the Ruvu Nappe about 5 km SE of Block D. It was sampled to follow up on four consecutive regional gold values of 16,10,73 and 139 ppb gold from Stage 1 regional sampling. The infill results confirm and extend this anomaly as a NW-SE trending low level anomaly parallel to the strike of the rocks. However, gold values are generally low, in the range 10-20 ppb with a maximum single point value of 100 ppb. Although the gold  anomaly is defined on low gold values,  its location along the Ruvu structure warrants further investigation.

Block G

Block G is located 1.4 km East of Block F and was placed to follow up on a singular regional gold anomaly of 45 ppb Au from Stage 1 exploration. The infill Au  results confirm a low level anomalous area trending NW-SE along the 1 km length of the sampled area. The anomaly is defined by values in the 10 ppb to 30 ppb range. The multi-element geochem data shows a moderate well defined NW-SE trending Cu anomaly with values in the range 100-300 ppm and this will require further field  investigation.

 Block H

Block H is located 0.5 km west of Block B  within  the northwestern part of PL 6541/2010 and was sampled to follow up on four consecutive gold values of 56,57,70 and 71 ppb  on a regional sample line from Stage 1 exploration. The infill soil results for gold were low and did not reproduce or extend the previously returned regional gold-in-soil values. The high Ba geochemistry observed in Block B is evident here again and one sample on the western edge of the grid returned a value in excess of >10,000 ppm (the upper detection limit value of the analyses method). When extended towards Block B, this high Ba geochemistry appears to define a NE-SW trending zone which provides a priority area for further investigation.

Morogoro North

Based on Stage 1 exploration results , 10 regional gold-in-stream anomalies with values > 20 ppb were identified for follow up detailed infill sampling over PL 6717/2010 and 6598/2010. (the Berega and Gairo Blocks).  A total of 441 infill samples stream sediment samples were collected during the in fill sampling programme.

 The infill stream sediment sample results are low and do not expand the anomalies generated from the regional sampling.  Only 11 of the 441 samples returned gold values in excess of 10 ppb  with maximum values of 181 ppb. The results over PL 6717/2010, where most sampling was carried out, were particularly poor while the better results are located on PL 6598/2010. In general, the low level and predominantly single point value occurrences of the anomalous gold- in-stream sediment results does not appear to indicate potential for significant gold mineralisation on these licences and they will now be revaluated to ascertain if further work is warranted. The areas represent less than 5% of the total Morogoro North project portfolio and the Company's field teams have already commenced sampling programmes on licences further north towards the Handeni area where significant gold discovery success has been achieved by other companies and small scale miners in recent years. Results from these programmes will be reported when the results are available.

Conclusions and next exploration step.

The Company is very pleased with the emerging results from exploration work at Morogoro South whichclearly demonstrates the Ruvu Nappe  as the primary geological target for gold discovery in the region.  Kibo has successfully delineated a coherent gold soil anomaly on Block A with multi-element associations which it anticipates will provide its first drill target in the area. Significantly, this anomaly is open-ended to the  South and it appears to be traceable again on Blocks D & F, albeit with weaker gold-in-soil geochemistry following the mapped sole thrust zone of the Ruvu Nappe over a length of 15 kilometres. The forward exploration programme in the area will comprise focused surface exploration along this zone with continued detailed infill soil sampling, mapping, ground geophysics and trenching. Initial work will focus on Block A where an early drill target appears to be emerging and the next step in this will likely be trenching and sampling over the anomaly in order to confirm bedrock gold mineralisation and assist with drill planning. The association of gold with arsenic, bismuth and antimony and more subtle associations with other elements from the multi-element soil sampling results may prove an important geochemical exploration tool in this area.

The gold-in-stream sediment results from PL 6717/2010 and 6598/2010 were disappointing and these areas are now being re-evaluated. The surveyed areas represent just a small region at the southern end of the Morogoro North project which comprises approximately 4,000 km² of tenements extending towards the gold prolific Handeni region further North. The company's exploration teams have already commenced first-pass sampling on a number of these areas following issue as Prospecting Licences during the second half of 2012.

Review by Qualified Person

The information in this announcement that relates to exploration results, mineral resources or ore reserves is based on information reviewed by Noel O'Keeffe, PGeo who is a member of the Institute of Geologists of Ireland. Noel O'Keeffe is also the Exploration Director of Kibo. Noel O'Keeffe has at least five years experience within the sector which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a qualified person under the AIM Rules. Noel O'Keeffe consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

All soil samples were submitted to ALS Chemex preparatory laboratory in Mwanza, Tanzania where they were dried and screened to 180 microns. Pulps of 50 grams were sent to ALS Chemex analytical laboratory in Johannesburg. Analyses for gold was by  fire assay  with an ICP-AES finish (detection limits of 0.001 - 10ppm). Mult-element analyses (semi-quantitative) was by acid digestion and either an ICP- MS or ICP-AES finish. Stream sediment  samples were prepared in the field by wet sieving approximately 20 kg of sample material to obtain a less than or equal to 180 micron fraction. Approximately 200 gram samples of this material were dried, packaged and dispatched to to ALS Chemex preparatory laboratory in Mwanza, Tanzania where they were pulverised and pulps of 50 grams  sent to ALS Chemex analytical laboratory in Johannesburg. Analyses for gold was by  fire assay  with an ICP-AES finish  (detection limits of 0.001 - 10 ppm).

Approximately 5% QA/QC samples were submitted as part of the sample stream and review of the results found that sample results were reported to acceptable standards by the laboratory.

Enquiries

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Noel O'Keeffe	[phone]	Kibo Mining plc	Exploration Director
Stuart Laing	[phone]	RFC Ambrian Limited	Nominated Adviser
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser   (AltX)
Matthew Johnson	[phone]	Northland Capital	Broker (Assistant Director, Corporate Finance)
Nick Bealer	[phone]	Cornhill Capital Ltd	Broker (Corporate Broking)
Matt Beale	[phone]	Fortbridge	Public Relations

General Background & Strategy

Kibo is a public company registered in Ireland (company number 451931). Its registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland. Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27 April 2010 and AltX in South Africa on 30 May 2011. The Company suspended itself from AIM during the period 11 May to 14 August 2012 to facilitate two corporate acquisitions that significantly increased its mineral assets in Tanzania. It was re-admitted to AIM on 15 August 2012 and shareholder approval for the acquisitions was obtained the 6^th September 2012 at an EGM.

The Board of Kibo is composed of professionals whose experience include mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial control of public companies. It is supported by a competent and motivated Tanzanian staff that operates from Kibo's operations office in Dar es Salaam.

The mineral assets of the Company now comprise five projects in Tanzania - Haneti (nickel, PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal & Uranium) which give Kibo access to 38,000 km² of early stage exploration licences in Tanzania's premier gold mining region, the Lake Victoria Goldfield, within the emerging gold exploration regions in eastern Tanzania and uranium & coal regions in south-western Tanzania.

The acquisitions of Mzuri Energy and Mayborn have added the advanced Rukwa thermal coal project and the Pinewood uranium exploration project to Kibo's portfolio of mineral projects in Tanzania.

The Rukwa and Pinewood projects will provide Kibo shareholders with exposure to an attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated within and close to the Mtwara Corridor, an area where the Tanzanian Government has committed to significant infrastructure development and which has seen recent multi-million dollar investment in coal and coal-fired power stations and uranium exploration.

The Rukwa project is substantially more advanced than Kibo's existing exploration projects, with a significant Mineral Resource of thermal coal already defined. This provides nearer term development and commercialisation potential, complementing the earlier stage existing projects held by Kibo. This is further supported by the memorandum of understanding that has already been entered into with a major Asian conglomerate for the development of a coal mine and mine-mouth coal-fired power plant based on the Rukwa project. 

In addition, the Pinewood project encompasses a significant ground holding of prospective Karoo sequence sedimentary rocks. These sediments are attracting considerable interest from international companies exploring for uranium and coal mineralisation following some notable discoveries in recent years.

Kibo's objective is to build shareholder value in a sustainable manner. This objective will be pursued primarily through active exploration of its own projects and by using the Company's experience in Tanzania to acquire attractive exploration and development assets on competitive terms that can be moved swiftly up the value curve by using the company's own skills base whilst also seeking to benefit from strategic collaborative relationships with industry leaders who have special skills and competencies within their chosen fields of focus. Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.

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

Johannesburg

14 November 2012

Corporate and Designated Adviser

River Group

 

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