Mbeya coal to power project update

RNS Number : 2930P

Kibo Mining Plc

17 February 2016

 



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:  IE00B97C031

("Kibo" or "the Company")

 

17 February 2016

Mbeya Coal to Power Project: Special Analysis Test Results Provides Further Impetus to Definitive Feasibility Study  

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to announce the special analysis (specific metallurgical tests) test results on the Mbeya coal resource of the Mbeya Coal to Power Project ("MCPP").

Key Highlights

·    Ash fusion temperature (in both oxidizing and reducing environments) well above boiler operating temperature;

·    Abrasive index of coal well within specifications for use with the fluidized bed technology;

·    The Hardgrove Grindability Index ("HGI") test shows coal to be within specifications for use with fluidized bed technology;

·    Sulphur content well within tolerance;

·    Lime injection technology will be able to comfortably keep Sulphur Dioxide emissions within required international emission standards; and

·    Ash content within tolerance levels for similar coal deposits in Southern Africa.

Louis Coetzee, CEO of Kibo Mining, said: "The results from the metallurgical test work on the Mbeya coal resource, marks another major step forward in the development of the MCPP. Feasibility work done to date on the Mbeya coal resource independently concluded that the mining component of the MCPP is a very robust mining project with outstanding economic and technical fundamentals. This did however not consider specific metallurgical properties of the coal as such and whether the properties of the Mbeya coal would be equally complimentary to the technical fundamentals of the power component of the MCPP.

The metallurgical test results received have proven that the Mbeya coal not only meets, but exceeds, the standard technical requirements of the power plant. With these latest test results the Mbeya coal resource has now passed all the technical and economic requirements to qualify as a suitable long term fuel source to the Mbeya Power Plant.

We can now focus all our attention and resources on concluding the remaining mostly administrative and commercial aspects of the MCPP DFS".

Background

The recently completed diamond drilling programme on the MCPP was designed to collect detailed geotechnical data within the mining area, as well as to collect samples to test specific metallurgical properties of the Mbeya coal. This data was required to enable ongoing work on the MCPP DFS.

Eight final diamond core holes were drilled and as part of the metallurgical programme, each drill hole was logged and sampled in detail, following a strict procedure laid out by the Competent Person (CP) and in accordance with accepted international standards. A total of 44 composite samples were prepared. These samples were confined to the individual coal seams so as to provide representative sample coverage over each coal seam.

Each sample was analysed for:

·    Average relative density (ARD);

·    Wash analyses with each fraction allayed for: Proximate, Gross calorific value (GCV) and sulphur;

·    Inherent moisture;

·    Volatile matter;

·    Ash;

·    Calorific value;

·    Total sulphur;

·    Hydrogen;

·    Carbon;

·    Ash fusion temperature (AFT) in oxidizing atmosphere;

·    Ash fusion temperature (AFT) in reducing atmosphere;

·    Abrasiveness;

·    Hardgrove grindability index (HGI);

·    Nitrogen;

·    Ash Analyses;

·    Chlorine; and

·    Chloride.

The results from the analyses were considered by several industry professionals and it was found that in all cases the metallurgical properties of the coal, met and or exceeded the quality standards for use in a fluidized bed power station. All the consulting experts concluded that the coal metallurgy and quality was suitable for use in a fluidized bed coal power station.

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss	[phone]	Beaufort Securities Limited	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle / Anna Legge	[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, the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa Coal to Power Project ("RCPP"), 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 the Mbeya project with an integrated Coal-Power interim study report to be released in the near term. On 20^th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.

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 and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project 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 entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally, the Company also holds the Morogoro (gold) project where the company has also entered 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

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

The Company's Exploration Director, Noel O'Keeffe has reviewed the resource reports and the references to them in this announcement.

Johannesburg

18 February 2016

Corporate and Designated Adviser

River Group

 

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