First Financial Indicators for RCPP

RNS Number : 8167T

Kibo Mining Plc

09 October 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

("Kibo" or the "Company")

09 October 2014

First Financial Indicators for Rukwa Coal to Power Project ("RCPP")

Highlights

·           Initial financial modelling confirms robust project economics;

·           Continuous surface mining technology is expected to result in reduced direct mining costs.

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 positive first key financial indicators for the Rukwa Coal Mine, produced from the feasibility work done thus far. Initial financial modelling based on conventional mining methods indicates:

·          Capital expenditure well below initial estimates;

·          Attractive rates of investment return over life of mine;

·          Short indicative capital payback period;

·          Direct mining cost estimate of between USD1.60/t - USD1.90/t

A preliminary investigation into continuous surface mining as a possible replacement to traditional coal seam mining through blasting and drilling, on which all modelling has been done thus far, is expected to bring about significant reductions in direct mining costs. Continuous surface mining is also expected to provide the following additional advantages:

·           Fast, precision mining of the coal seam; and

·           Reduction in crushing requirement.

Louis Coetzee, C.E.O. of Kibo Mining, commented: "The initial robust economics of the Rukwa Coal Mine are better than expected and bode well for the remaining RCPP feasibility work. The results obtained from feasibility work done so far will now be subjected to further rigorous interrogation during the ensuing, more advanced, stages of the feasibility study. Incorporating specific requirements / specifications from the Power Feasibility Study will further refine the economic assessment of the Rukwa Coal Mine."

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 (gold), Lake Victoria (gold), and Pinewood (coal & uranium) projects.

Kibo's 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 METRES	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 Coal Project

Review by Qualified Person

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 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 October 2014

Corporate and Designated Adviser

River Group

 

END

 

 

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