Dated: 09 February 2015

Kibo Mining Plc (“Kibo” or the “Company”) (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce the findings of the Preliminary Economic Assessment (“PEA”) (Stage 1, Phase 1, Concept Study) in respect of the Company’s Lake Victoria Goldfields Imweru Gold Project. The Company also wishes to announce that Stage 1, Phase 2 (the Pre-Feasibility Study) of the Imweru Definitive Feasibility Study (“DFS”), will now commence immediately. The PEA formed the first element of the Definitive Mining Feasibility Study, being undertaken by Minxcon Projects, on behalf of the Company.

Highlights from the PEA for the Imweru Gold Project:

  • Workable base case for accelerated development of the Imweru Gold Project now established;
  • Initial Project Plan developed to establish and implement a mining operation at Imweru Central and East with an initial Life of Mine over 7-10 years;
  • Exploration Plan devised to expand the Imweru Mineral Resource and thus extend the Life of Mine by a further indicative 6 year period;
  • Project is financially feasible based on two options investigated, namely owner operated and contractor operated;
  • Estimated cash flow generation from initial operations sufficient to enable the Company to self-fund wider resource expansion and development of the Imweru Project, and contribute towards development costs of other Company assets in the Lake Victoria Goldfields region; and
  • Various discussions underway with regard to forward project development and/or disposal opportunities.

Louis Coetzee, CEO of Kibo Mining, commenting on the PEA report findings said: “We set out to properly assess the economic potential of the Imweru Gold Project, to provide the data necessary for Kibo to consider taking this asset into early production, primarily as a self-funding mechanism that will allow us to internally fund the future development of the estimated substantial economic potential of the Company’s Imweru and Lubando projects in particular.

Receipt of this report not only puts us in the position to take the decision to proceed with an accelerated development of the Imweru project, but also provides crucial base data that is needed when conducting discussions with third parties, in respect of this project opportunity.

The progress being made with Imweru is being achieved in parallel to our work at the Company’s flagship Rukwa Coal to Power project where we anticipate receipt shortly of the integrated Coal –Power interim pre-feasibility study which is another highly important step in the demonstration of the technical and economic value of that project.  We intend updating the market shortly in respect of this report and the important issue of development partner selection.”

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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Final-RNS_Imweru-PEA_V3.0_09-02-14.pdf” btn_target=”_blank”]PEA Update – Imweru Gold Project[/ott_teaser]