Mbeya Coal to Power Project Update

RNS Number : 3080O

Kibo Mining Plc

08 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")

 

08 February 2016

Mbeya Coal to Power Project: Critical Next Step of Integrated Feasibility Study Completed  

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce that Phase 1 of the Mbeya Coal to Power Project ("MCPP"), Integrated Bankable Feasibility Study ("IBFS"), has been successfully completed. 

Key highlights

·    Successful integration of three primary MCPP feasibility study work streams;

·    Pivotal  meetings with all key Government stakeholders completed; and

·    Formal appointment of Shangoni Management Services LTD as environmental consultant.

Louis Coetzee, CEO of Kibo Mining, said: "The completion of the first phase of the IBFS is a critical step in the overall feasibility work which is now progressing at pace. The four key work streams, (MDFS, PDFS, EIA and IBFS) are all active and progressing in parallel. This is in itself the strongest indicator of the considerable momentum with which the feasibility work on the MCPP is advancing, and fast nearing completion.

We took great care during the preceding stages of the MCPP feasibility work to ensure that solid foundations are put in place on which the MCPP can be developed. These would be particularly important during the final stages of the feasibility work, when the project is invariably subjected to stringent external stress tests. During the past week the MCPP underwent its first significant external stress test and withstood this with ease. This bodes well for the intricate commercial and funding related negotiations in the coming weeks and months."

Background IBFS: Phase 1

Before the MCPP can advance to financial close, it must first deliver an appropriately competent IBFS that meets internationally accepted technical and financial standards. The key contributors to this integrated IBFS are the following:

1.   Definitive Mining Feasibility Study ("DMFS")

2.   Definite Power Feasibility Study ("DPFS")

3.   Environmental Impact Assessment ("EIA") for both the Mbeya coal Mine and the Mbeya Power Station

In recent announcements by the Company (please see the announcements dated 05 November 2015, 14 December 2015, 07 January 2016 and 12 January 2016), the commencement of the DMFS and DPFS was announced, followed by various updates on the progress in this regard. As the critical contributors to the IBFS, these two studies had to be implemented first, followed by the EIA, the third critical contributor to the IBFS. With these three main contributors to the IBFS well underway the next critical step was to implement Phase 1 of the IBFS, which comprises the integration of the three fundamental works flows mentioned above, to enable the IBFS to be conducted in parallel to the DMFS, DPFS and EIA. During a five-day work session in Tanzania that started on 31 January 2016  which was attended by Kibo as project sponsor and by the project teams of Tractebel, MinXcon and Shangoni, the Company successfully integrated the work flow of the main IBFS contributors and in doing so also completed Phase 1 of the IBFS.

The work session referred to above involved critical co-ordinating and planning meetings with all the key Government departments and stakeholders concerned with the MCPP and included amongst others the Tanzanian Ministry for Energy and Minerals, TANESCO (national electricity utility company) and EWURA (regulator - electricity and water). The work programme finally concluded with an extensive technical site visit to the MCPP project site by all the project teams mentioned above. 

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

08 February 2016

Corporate and Designated Adviser

River Group

 

END

 

 

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