Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO, AltX: KBO) the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to provide an operations update. The Company has received final results from its Stage 1 exploration programme at its Lake Victoria, Haneti amd Morogoro projects which it implemented over the period October 2011 to March 2012. The results highlights are shown below and discussed in detail later in this announcement. The results are very encouraging, and support the programme’s primary objective of identifying initial targets for near term drilling. Drilling together with extension of early stage exploration surveys over more of the Company’s large licence portfolio will be part of a Stage 2 programme to commence in Quarter 3, 2012.
Summary Highlights
- Lake Victoria – Drill and trenching targets resolved on three Prospecting Licences;
- Haneti – Drill targets for nickel sulphide mineralisation resolved from ground electromagnetic surveys at Mwaka and Mihanza Hills;
- Morogoro South – Six gold-in-soil anomalies identified from regional sampling along the central 28 km strike length of the Ruvu Nappe ;
- Morogoro North – Ten gold-in-stream anomalies identified from regional stream sediment sampling over two southern Morogoro North Prospecting Licences.
Louis Coetzee CEO of Kibo commented:
“The Board is pleased to provide this operational update and to inform shareholders that all the objectives set for Stage 1 of Kibo’s two stage exploration program have been achieved, i.e. technical, cost and time. With regard to cost and time it is worth noting that the company completed Stage 1 two months ahead of schedule and within the approved budget”
Operations Details
Introduction
Kibo’s Lake Victoria, Haneti and Morogoro projects give the Company access to an approximate 18,000 sq.km land package of highly prospective early stage exploration ground for gold and base metals within Tanzania’s established and newly emerging mineral exploration areas. Stage 1 field exploration, the results of which are being reported here, had a budget of £1.3M and was the first stage of a board approved £5.3M exploration programme to comprehensively evaluate these projects with the objective of discovering and outlining gold (Lake Victoria and Morogoro) and base metal (Haneti) resources. The Company implemented the Stage 1 programme to follow up on priority target areas which were selected based on positive results from previous regional sampling surveys and geological reconnaissance. The programme comprised three main elements of early stage exploration surveys as follows:
1. In-fill soil surveys over gold anomalous areas identified from previous regional soil surveys within selected prospecting licences on the Lake Victoria project;
2. Pitting and ground geophysics at Haneti to test both laterite and sulphide nickel targets identified from previous soil, trenching and geophysical surveying;
3.. First pass regional stream and soil sampling surveys over priority areas identified on Morogoro South (Ruvu Nappe geological target) and Morogoro North (Berega and Gairo areas).
The areas identified for this initial work represent about 5% of the total ground area potentially available to the Company and covers those Prospecting Licences (“PLs”) which have been recently issued (“active PLs”) from the large portfolio of Company applications, renewals and offers that are in the pipeline. As Tanzanian licence regulations do not permit commencement of field work in an area until the relevant PL becomes active and there is a system delay of up to 1 year in processing and issuing PLs, the Company did not have all the licences available to it for exploration for which exploration expenditure had been allocated. This has resulted in just £0.6M expenditure from the Stage 1 budget of £1.3M during the
exploration period with the shortfall affecting the Lake Victoria project in particular. The balance will be carried forward as part of Stage 2 exploration to be expended as PLs become active. It should be noted that many of these PLs encompass highly prospective areas which remain to receive first pass exploration.
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