Interpretation and Evaluation of Imweru Exploration Results Delivers Further Strategic Options for Development of Imweru

  • Near term production may be possible from Imweru, subject to required feasibility work, and mine planning
  • Imweru holds sufficient existing JORC compliant gold resources to support production
  • Confidence that additional exploration will add to the resource inventory
  • Mineralisation appears suitable for traditional processing methodologies

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 an update for shareholders with regard to the Imweru project, the Company’s flagship gold project within the Lake Victoria Goldfields region of Tanzania.

In line with previous announcements, the Company’s principal operational focus during recent months has been the progression of the Rukwa Coal to Power project and negotiations with a strategic partner for that project. Matters pertaining thereto continue to progress, as stated in the last market update dated 21 August 2014.

The progress at Rukwa has not been the only area of development within the Company with active, cost effective work being undertaken to further assess and evaluate all the Company’s gold, nickel, coal and uranium project portfolios. In particular, considerable internal review work has been undertaken to evaluate the Company’s flagship Imweru gold project, in the Lake Victoria Goldfields. Imweru currently has a JORC compliant gold resource of 550,000 ounces (495,000 ounces currently attributable to Kibo). See Tables 1 and 2 below for Technical Detail.

Kibo recognises that the market, and those with a commercial interest in the type of project that Imweru represents, are keen to see the project developed in a manner that enables the earliest effective commercialisation.

Consistent with the Company’s strategy, Kibo is also keen to see commercial development of its projects, whether by way of the Company owning and operating producing assets, or by disposal of assets on favourable terms. The Company also recognises that whether the ultimate direction is production or sale, commercialisation of interests moves Kibo toward self-financing status, thus reducing reliance on the market for financing of activities.

Kibo’s recent work has therefore concentrated on a full internal review of historic Imweru exploration data to identify the optimal route for further development. This internal review, which is ongoing, has been undertaken by the Company and validated by two independent technical consultants which confirm the Company’s review findings.

The review has concluded that the exploration work undertaken to date and the resource data gathered from this work demonstrate the potential viability of early gold production from the Imweru project.

The review has demonstrated the following key elements for the Imweru Project:

  • Imweru holds sufficient existing JORC compliant gold resources to support production.
  • There is a high degree of confidence that additional exploration will add to the resource inventory to supplement existing resources and extend prospective mine life.
  • Mineralisation appears suitable for traditional processing methodologies and that feed ore would be suitable for a variety of processing options.
  • Significant localised infrastructure exists, recognising the considerable quantity of gold exploration and mining activities already undertaken in the region.

Subject to necessary feasibility work, and mine planning, it may be possible to produce gold from Imweru in the near term.

As indicated above, Kibo has a number of value crystallisation options for the Imweru Project and we are currently considering the optimal strategy, and will update shareholders as appropriate.

Whilst this strategic review continues the Company has already initiated a number of selective and cost efficient work steps to further understand the mineralisation and the metallurgy thereof, which will be required when optimising potential future gold production activities. These steps form an integral part of feasibility study work that ordinarily is undertaken before mine planning can be finalised.

Louis Coetzee CEO of Kibo Mining said: “The board of Kibo Mining have full confidence in the potential of the Imweru Project which was acquired in 2013.

The board are delighted with the review findings and notably that this resource potentially could be accelerated into early production, with the significant value generation that this would deliver to the Company and its shareholders. Kibo intends to report regularly with regard to continuing developments at Imweru, alongside news from Rukwa, as we move to value crystallisation at the Coal to Power project.”

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