Preliminary Evaluation confirms Mining Viability

RNS Number : 1014R

Kibo Mining Plc

09 September 2014

 

Kibo Mining Plc

(Incorporated in Ireland) 

Registration Number: 451931

(External registration number: 2011/007371/10)

Share code on the JSE: KBO

Share code on the AIM: KIBO

ISIN: IE00B61XQX41

09 September 2014

Preliminary Economic & Technical Evaluation of Rukwa Coal to Power Project

Confirms Mining Viability

Highlights

* Early economic and technical evaluation of the Rukwa Coal Mine confirms robust project fundamentals

* Rapid progress on Definitive Mining Feasibility Study (" DMFS") accelerates process to select and engage suitable consultants for Feasibility Study on Rukwa Power Plant 

* Discussions in progress to finalize Heads of Terms (HOT) for power purchase, coal sale and grid connection agreements

* Base case supports a 300MW coal fired power plant over an initial 20 year life and beyond

* Phase 1, Stage 1 of the DMFS slightly ahead of schedule 

Kibo Mining plc ("Kibo" or the "Company"), the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce the results of  a preliminary economic and technical evaluation undertaken as part of the Definitive Mining Feasibility Study ("DMFS") for the Rukwa Coal Mine. The early assessment of the technical and economic viability of the Rukwa Coal Mine as a suitable fuel source for a 300MW mine-mouth coal fired power station has been confirmed 

Work done to date delivered the following summary results:

* Mine modelling shows that the Rukwa deposit can be mined successfully and economically at a stripping ratio of approximately 4.0 (BCM/t) in an opencast operation, over a LOM of at least 27 years and at an indicative direct mining cost range of $1.00 - $2.00 p/t, and indicative plant cost of $1.00 - $1.50 p/t; and

* Initial pit optimisation indicates a pit 9,050m along strike, 490m wide, and 100m deep, with the development of Mine Design Criteria currently 60% complete.

Phase 1, Stage 1 of the Rukwa DMFS has thus far primarily focused on:

* Pit optimisation

* A conceptual base case for mining the Rukwa coal deposit

* Mine design criteria

* Conceptual mining schedule and infrastructure lay-out (inclusive of possible power plant locations)

The indicative Life of Plant for the Rukwa Power Station requires 28.8Mt of coal over 20 years, which amounts to only 48% of the currently mineable resource of 60Mt for the Rukwa Coal Mine.  The remaining 52% of the currently mineable resource, combined with the remaining 35km strike length of the Rukwa Coal Deposit not included in the resource, suggests a potential minimum 40 year life of plant for the Rukwa Power Station, with enough fuel left to sustain an additional 600MW capacity for a further 30 to 40 years.

Louis Coetzee, C.E.O. of Kibo Mining, commented: "We are delighted with the latest results of the ongoing work at Rukwa and the rapid progress the Company is making at the moment. The progress made with Phase 1, Stage 1, of the Rukwa DMFS confirms the robust technical and economic fundamentals of the project and its suitability to support a 300MW power station for up to 40 years." 

Kibo Mining - Notes to editors

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania's largest mineral right portfolios, including the - Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold), and Pinewood (Coal & Uranium) projects.

Its projects are located both 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.

Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.

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

Technical Data

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

Review by Qualified Person

The information in this announcement that relates to the Rukwa coal resource is taken from  a report "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 also reviewed the technical reports and the references to them in this announcement.

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 Trinity McIntyre	[phone] [phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lydia Eades	[phone] [phone]	Bell Pottinger	Investor and Media Relations

Johannesburg

09 September2014

Corporate and Designated Adviser

River Group

 

END

 

 

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