Mbeya Coal to Power Project Update

RNS Number : 7820B

Kibo Mining Plc

21 June 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:IE00B97C0C31

("Kibo" or "the Company")

21 June 2016

Mbeya Coal to Power Project Update

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to update shareholders on the latest progress with regard to the main work streams on the Mbeya Coal to Power Project ("MCPP") Integrated Bankable Feasibility Study ("IBFS").

·    Power

-    Definitive Power Feasibility Study completed and report reviewed and delivered. (RNS May 4, 2016)

-    EPC specification completed.

-    Preparation for EPC bid procurement process completed.

-    Successful pre-bid procedure with SEPCOIII completed, in accordance with the requirements of the Kibo / SEPCO III Joint Development Agreement.

·    Mining

-    Definitive Mining Feasibility Study is on track for completion by end June 2016:

§ Logistics Study completed.  This study finalised the mining specific and general equipment and vehicle fleet required to operate the 1,6 Mt per annum coal mine, and confirmed conclusion of the Pre - Feasibility Study.

§ Pit Optimization complete.

§ Mine Design process in final stages, to be followed by the final mine plan and schedule.

§ Mining EPC and Contracting process in progress with budget quotes received from 8 bidders which are currently in the process of being evaluated.

·    Environment and Social Impact Assessment

-    Project Registration complete. (RNS May 19, 2016)

-    Scoping Study Phase: Specialist field work stage complete.

-    Socio - economic consultation process completed.

-    Hydrology Study and water model nearing completion.

Louis Coetzee, CEO of Kibo Mining plc said "At this time multiple work streams are simultaneously underway in the process of completing the IBFS on the MCPP. The technical work that forms the backbone of the IBFS is now fast drawing to a close and the financial model is in the process of being updated. We continue to see strong support from the Tanzanian Government and we remain confident that the various regulatory and statutory processes required will continue to keep up with the pace at which the MCPP is developing."

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 Mbeya, which has a significant NI 43-101 compliant defined resource, and is developing a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called Mbeya Coal to Power Project ("MCPP"), 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 Bankable Feasibility Study report for the MCPP 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 550,000 oz. JORC compliant gold Mineral Resource at Imweru Project and a 168,000 oz. 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 prioritized 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 recognizes 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

Johannesburg

21 June 2016

Corporate and Designated Adviser

River Group

 

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