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21 Aug 2014 08:31
Kibo Mining Plc (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited:KBO Share code on the AIM:
KIBO ISIN:IE00B61XQX41
("Kibo" or "the Company")
21 August 2014
Updates on Progress with Rukwa Coal to Power Project ("RCPP") Definitive Mining Feasibility Study ("DFS")
· Phase 1 of Stage 1 of the DFS fully underway;
· Initial benchmarks met;
· Discussions on power coal and connection agreements progressing;
The initial focus of the DFS was to test the key benchmark assumptions that will determine the economic viability of the Rukwa coal mine, as a long-term reliable coal supplier to the planned 300MW mine mouth Rukwa Power Station. To date the following key benchmark assumptions have been subjected to a first pass assessment and delivered positive results, justifying further definitive feasibility work:
· Excellent potential to mine the Rukwa deposit successfully and economically, based on current coal quantity and quality;
· Suitable calorific values to match the fuel requirements for the planned Rukwa Power Plant;
· Acceptable ash and volatile matter content;
· Early principle decision that it will not be necessary to subject the coal feed to the Rukwa Power Plant to a washing process. (A final decision in this regard will follow upon completion of advanced feasibility work);
· Sufficient coal in the current Mineral Resource, to sustain the Rukwa Power Plant for a period of up to 40 years.
Louis Coetzee, CEO of Kibo Mining, said: "We are pleased with the positive progress and outcomes on the Rukwa DFS to date. It is important to note that the above results represent the findings from early assessments. The early DFS outcomes, referred to above, are also providing valuable support to the discussions on the finalization of the Heads of Terms for the Power Purchase Agreement, Grid Connection Agreement and Coal Sale Agreement.
These initial results bode well for a successful outcome from the DFS and we are confident of continued positive results as the studies continue."
Contacts
Louis Coetzee | +27 (0) 83 2606126 | Kibo Mining plc | Chief Executive Officer |
Andreas Lianos | +27 (0) 83 4408365 | River Group | Corporate Adviser and Designated Adviser on JSE |
Jon Belliss Abigail Wayne | +44 (0) 20 3693 1470 | Hume Capital Securities Plc | Broker |
Oliver Morse Trinity McIntyre | +61 8 94802500 +61 8 94802500 | RFC Ambrian Limited | Nominated Adviser on AIM |
Daniel Thöle Lydia Eades | +44 (0) 203 772 2500 +44 (0) 203 772 2500 | Bell Pottinger | Investor and Media Relations |
Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral resource industry and Kibo Mining therein.
Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant defined resource, and is developing a 250-350MW mouth-of-mine thermal power station with an established management team that includes Standard Bank as Financial Advisor.
Kibo also holds the Haneti Licence on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals.
The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a substantial existing JORC compliant gold resource and is seeking to materially increase this resource through exploration of known extensions to existing mineralisation.
Kibo Mining also holds the Pinewood (coal & uranium) projects.
The Company's projects are located 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. The Company has a positive working relationship with the Tanzanian government at local, regional and national levels and works hard to maintain positive relationships with all communities where company interests are held. The Company recognises the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.
Updates on the Company's activities are regularly posted on its website www.kibomining.com
Johannesburg
21 August 2014
Corporate and Designated Adviser:
River Group
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