TIDMKIBO
RNS Number : 8491F
Kibo Mining Plc
21 June 2012
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")
Operational Update
Dated: 21 June 2012
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO, AltX: KBO)
the mineral exploration and development company focused on gold,
nickel, coal and uraniumprojects 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 km(2) 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 GBP1.3M and was the first
stage of a board approved GBP5.3M 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 GBP0.6M expenditure from the Stage 1
budget of GBP1.3M 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.
The following section describes in detail the field work carried
out during Stage 1 exploration. Maps to accompany this section can
be found under the "Projects" menu on the Company's website
www.kibomining.com.
Lake Victoria
Introduction
Work on the Lake Victoria project focused primarily on areas
where previous reconnaissance soil sampling has produced anomalous
gold values. Three PLs were selected for follow up infill soil
sampling, 6283/2010, 7589/2012 and 7590/2012. A fourth, 5243/2008,
which had not received previous work was also selected for detailed
soil sampling based on its proximity to a small historic gold
showing.
PL 6283/2010
A total of 397 infill soil samples were taken on PL 6283/2010
centred on a small banded ironstone ridge over which regional
sampling from 2007 had produced a number of values in excess of 100
ppb gold. An area of 3.7 km(2) on a grid spacing of 100 m by 100 m
was sampled to verify and provide infill soil sample coverage. The
results confirm and further resolve the previous anomaly which now
extends to the NW from the ridge over 2 km and remains open-ended
to the NW. Soil gold values on the ridge where bedrock is exposed
are up to 219 ppb while the anomaly is defined by gold values in
the range 20 to 50 ppb off the ridge towards the NW. Further work
in this area will comprise trenching and sampling across the
anomaly on the ridge top to ascertain if zones of economic gold
grades can be established in bedrock. Soil sampling will also be
extended to the NW to define the full extent of the gold anomaly.
Should the results of this work prove encouraging, Rotary air blast
(RAB) drilling will be undertaken to test for gold mineralised
zones particularly in areas where the soil anomaly may persist over
deeper regolith cover to the NW.
PL 7589/2012
A total of 266 infill soil samples were taken on PL 7589/2012
over an area of 1.8 km(2) on a banded ironstone ridge where soil
regional sampling from 2007 showed values in the general range
20-50 ppb with a maximum outlier value of 524 ppb. The infill soil
sampling was undertaken on a grid at 50 m by 100 m and the results
define a gold anomaly broadly coincident with the NW trending ridge
over a distance of 1.5 km. The gold anomaly is defined on gold
values in the range of 20 to 50 ppb and a maximum value of 149 ppb.
The gold values whilst considered anomalous are not exceptional
given their location on a ridge of ironstone outcrop and rubble
where they most likely reflect the background gold values to be
expected in this type of rock. However they are sufficiently
interesting to warrant additional prospecting, rock sampling and
trenching particularly at locations where gold-in-soil values are
highest.
PL 7590/2012
A total of 353 infill soil samples were taken on PL 7590/2012
over an area of 3.2 km(2) where previous regional soil sampling
results showed some multi-point anomalous gold values in the range
20 -50 ppb on four sample lines 400 m apart. The infill soil sample
results are very encouraging and have resolved the previous sample
results into a number of multi-point and individual high
gold-in-soil values which collectively show a NW trend. Anomalous
gold values are in the general range 20 to100 ppb with high outlier
values of 543, 133 and 187 ppb. The sampled area which covers flat
cultivated land provides an immediate RAB drilling target for the
Company's Stage 2 exploration programme.
PL 5243/2008
A soil sampling survey was undertaken on PL 5243/2008
immediately to the south of a small historic gold working on an
area of mapped greenstone to test for possible additional
mineralised structures associated with this working. The soil
sampling grid was orientated N-S, sample lines were 400 m apart and
sampling was at 200 m stations. A total of 180 samples were taken
over an area of approximately 15 km(2) . Apart from one single
anomaly point of 50 ppb, 30% of the samples showed gold values in
the range 1 to 20 ppb and the remainder had gold values less than
the detection limit. The soil results here are disappointing and
this PL will not be a priority for follow up during Stage 2
exploration.
Planned Stage 2 work at Lake Victoria
Specific follow up work on PLs 6283/2010, 7589/2012 and
7590/2012 where encouraging results have been obtained from Stage 1
exploration will comprise extension of infill soil sampling,
trenching, geological mapping, rock sampling and RAB drilling. It
is likely that a RAB drilling programme will be undertaken on PL
7590/12 in the near term while the other PLs will require further
surface evaluation (trenching, rock sampling and geological
mapping) to see if drilling programmes are warranted. Concomitant
with the work on these areas, geological appraisal of the remaining
large number of Kibo licences within Lake Victoria is on-going and
field programmes will be implemented according as the PLs become
active.
Haneti
Field exploration at Haneti followed up on the anomalous nickel
values previously obtained from soils, pitting and trenching in the
Kwahemu, Yobo, Mihanza and Mwaka hill areas east of Haneti Village.
Previously reported results included 93 m at 0.4% nickel from
trenching Mwaka Hill and a soil anomaly with values of 0.1% to 0.3%
nickel at Kwahemu Hill. The field programme at Haneti comprised two
elements:
A. Initial pitting programme to evaluate depth of weathering and
nickel laterite potential in the lower relief areas between and
adjacent to the small hills such as Kwahemu and Yobo where modestly
nickel enriched laterite profiles have been established from
previous pitting and sampling surveys;
B. Ground EM and magnetic surveys over Mwaka and Mihanza Hills
to verify nickel sulphide potential on these target areas where a
previous Induced Polarisation (ground geophysical method) survey at
Mihanza had already identified a conductor suggesting the possible
occurrence of nickel sulphide mineralisaton at depth.
Pitting
The pitting programme at Haneti was undertaken between the NW
end of Kwahemu Hill and Mwaka Hill over an area of 10 km(2) . Pits
were manually excavated at 400 m spacing along three NE-SW lines of
lengths 2, 2.8 and 3.2 km respectively. A total of 23 pits were
planned but hard ground conditions allowed for just 14 pits to be
successfully excavated and sampled. Pits were dug to depths varying
from 1.7 m to 4.9 m (depending on ground conditions) and channel
sampled down the sidewalls in contiguous intervals varying from 0.3
m to 1 m. The pit profiles showed poor laterite development over
the area sampled and the majority of the pits encountered bedrock
of serpentinite, amphibolites or granite-gneiss at shallow depth. A
total of 52 samples including QC samples were submitted to ALS labs
in Mwanza (preparation) and onward to Johannesburg for 30 g gold
fire assay and multi-element analyses. As expected from the shallow
regolith profiles the sample results showed no significant values
for all elements and the maximum nickel value was 0.27%.
The pitting survey was a trial programme to test the potential
for the development of a deep laterite profile with economic nickel
grades at the sampled locations. While the results show no laterite
nickel potential in the area tested, the results do provide
valuable geological information and confirm serpentinite
sub-outcrop over a wider area than had been previously mapped.
Weathering of this rock in a favourable geological environment
provides the source for lateritic nickel and the area tested
represents <10% of a larger belt which extends up to 80 km along
strike and uncertain maximum width which is believed to be
underlain by this type of rock. Based on the results and
difficulties encountered in penetrating the hard ground, further
testing of laterite nickel potential will be by RAB drilling.
Ground EM & magnetic survey
The ground electromagnetic (EM) and and magnetic surveys were
carried under contract by Spectral Geophysics of Botswana
(Spectral) over areas of 7.2 km(2) and 7.56 km(2) at Mwaka and
Mihanza Hills respectively. Time domain EM surveying (TDEM) was
conducted over 500 m by 200 m rectangular transmitter loops at 50 m
stations on NW-SE trending lines 200m apart using a 3 component
time domain system with a base station frequency of 1 Hz. Magnetic
surveying was carried out over the same gridded area. The results
presented below are summarised from the geophysical report prepared
by Spectral on their interpretation of the results from the
surveys.
At Mwaka Hill, the EM results have indicated two NW-SE trending
conductors of 800m and 400m in length respectively which could be
associated with nickel sulphide mineralisation at depth. The
significance of these conductors can now only be ascertained by
drilling and they provide two well resolved drill targets which
will be tested as part of Stage 2 exploration at this locality.
At Mihanza Hill, the EM results has indicated a large
formational conductor, which is most likely associated with
serpentinised ultramafics. However, the geophysical report suggests
a possibility that this conductor may be caused by nickel sulphide
mineralisation at depth and it is likely that the Company will also
test this target as part of a Stage 2 drill programme at
Haneti.
Planned Stage 2 work at Haneti
The initial Stage 2 exploration activity at Haneti will comprise
the implementation of a diamond drill programme to test the drill
targets identified in the Spectral geophysical report at Mwaka and
Mihanza. Exploration for nickel sulphide targets and gold will take
priority over nickel laterite exploration during during Stage 2.
Should the planned drilling at Mwaka and Mihanza encounter nickel
sulphide mineralisation, it is planned to implement an airborne EM
survey over the entire Haneti ultramafic belt in order to generate
more drill targets for this type of mineralisation. Prospecting,
rock sampling and mapping will continue in the southern and western
parts of the Haneti project during Stage 2 where on-going artisanal
mining indicates potential for the discovery of significant
greenstone related gold mineralisation.
Recent Developments
The Company's recent announcement of the 8(th) May 2012 on the
signing of a Memorandum of Understanding to pursue a strategic
joint venture with Brazilian industrial conglomerate Votorantim for
the further exploration of the Haneti project represents an
independent affirmation of the prospectivity of this area.
Contingent on the conclusion of a Joint Venture, Votorantim will be
required to spend up to GBP2.7M in exploration over a period of
three years to earn a 50% interest. This will allow the Company to
accelerate exploration over this large project for both nickel-PGMs
and gold at minimum cost.
Morogoro South
Field exploration at Morogoro South focused on a regional
geological structure, the Ruvu Nappe which is associated with both
artisanal alluvial and hard rock mining at various locations along
45 km of its length. Kibo undertook regional soil sampling across
the central 28 km portion of the structure over which it holds
active PLs.
Soil sampling was carried out at 100 m stations on 8 E-W
trending lines, 3 to 4 km apart and 9 km to 13 km in length. The
sampling lines were orientated to cut across the strike of the N-S
trending Ruvu Nappe at wide spaced intervals to target any gold
mineralised zones that may be coincident with, or parallel to the
structure. A total of 922 samples including QC samples were
submitted to ALS labs in Mwanza (preparation) and onward to
Johannesburg for 30 g gold fire assay and multi-element
analyses.
The majority of the gold values were at or below expected
background values of 1 to 5 ppb. However within this population
there are a number of anomalous values up to a maximum of 156 ppb
which occur in clusters of 1-3 consecutive sample points. These
provide 6 target areas for follow up sampling, prospecting and
geological mapping during Stage 2 exploration. Significantly, one
of these gold anomalies shows coincident anomalous geochemistry for
arsenic, bismuth and stibnite which are important gold pathfinder
elements in some geological terrains and should prove useful in
follow up work and extension of regional soil & stream sediment
sampling surveys to other areas within the Morogoro South
tenements.
Planned Stage 2 work at Morogoro South
Near term Stage 2 exploration at Morogoro South will comprise
detailed evaluation of the anomalous gold-in-soil anomalies
identified from the Stage 1 results by detailed infill soil
sampling and geological prospecting, mapping and rock sampling.
Should drill targets emerge from this work, these will be tested
later in the Stage 2 work programme. Regional soil and stream
sediment sampling and geological prospecting, mapping and rock
sampling surveys will be extended to other PLs in the Morogoro
South Block as they become active.
Morogoro North
Kibo's Stage 1 exploration at Morogoro North comprised an
extensive stream sediment sampling survey for gold on the southern
part of the exploration block on PLs 6717/2010 and 6598/2010 around
the villages of Gairo and Berega. This area is hilly with a good
drainage and the Company considered stream sediment sampling to be
as an efficient early stage exploration technique for this region
to resolve areas for more detailed follow up work. The survey
encompassed an area of about 200 km(2) and was sampled at a density
of 2-3 samples per km(2) for a total of 563 samples. Following an
initial first pass survey and review of gold results, follow up
sampling was undertaken around some anomalous areas to provide
greater resolution of the anomalies.
97% of the samples show gold values in the range <1 to 20 ppb
with the remaining 3% of the samples (16 samples) showing anomalous
values in the ranges 20 -50 ppb (8 samples) and >50 to 826 ppb
(8 samples). These anomalous values with greater than >20 ppb
gold-in-stream provide 10 priority sub-areas for follow up
work.
Planned Stage 2 work at Morogoro North
Regional stream sediment sampling has been successful at
Morogoro North in resolving 10 sub-areas for follow up work during
Stage 2 exploration. Stage 2 work will include infill stream
sampling, soil sampling, prospecting/rock sampling and geological
mapping over these areas. In addition to these activities, the
stream sediment sampling survey will be extended to other licences
in the Morogoro North block where the terrain is appropriate to
this type of early stage regional survey. Should drill targets
emerge quickly from this work, they will be tested later during
Stage 2 exploration.
Review by Qualified Person
The information in this announcement that relates to exploration
results, mineral resources or ore reserves is based on information
reviewed by Noel O'Keeffe, PGeo who is a member of the Institute of
Geologists of Ireland. Noel O'Keeffe is also the Exploration
Director of Kibo. Noel O'Keeffe has at least five years experience
within the sector which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which
he is undertaking to qualify as a qualified person under the AIM
Rules. Noel O'Keeffe consents to the inclusion in this announcement
of the matters based on his information in the form and context in
which it appears.
Enquiries
Louis +27 (0)83 Kibo Mining Chief Executive
Coetzee 2606126 plc Officer
-------------- ------------ ------------ ---------------------
Noel O'Keeffe +353 (0)91 Kibo Mining Exploration Director
865367 plc
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Stuart +61 8 9480 RFC Ambrian Nominated Adviser
Laing 2506 Limited
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Andreas +27 (0)83 River Group Corporate Adviser
Lianos 4408365 and Designated
Adviser (AltX)
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Matthew +44 (0)207 Northland Broker (Assistant
Johnson 7968829 Capital Director, Corporate
Finance)
-------------- ------------ ------------ ---------------------
Nick Bealer +44 (0)207 Cornhill Broker (Corporate
7109612 Capital Broking)
Ltd
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Matt Beale +44 (0)7966 Fortbridge Public Relations
389196
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General Background & Strategy
Kibo is a public company registered in Ireland (company number
451931). Its registered office is Kibo Mining plc, Suite 3, One
Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland. Kibo was
established in early 2008 to explore and develop mineral deposits
in Tanzania, East Africa and was admitted to AIM on 27 April 2010
and AltX in South Africa on 30 May 2011.
The Board of Kibo is composed of experienced professionals
spanning mineral exploration, mine development, mining finance and
financial control of public companies. It is supported by well
trained and motivated Tanzanian staff that operates from Kibo's
exploration offices in Dar es Salaam and Mwanza.
The mineral assets of the Company comprise three existing and
two newly acquired projects in Tanzania - Haneti (nickel, platinoid
elements and gold), Morogoro (Gold) and Lake Victoria (Gold) which
give Kibo access to over 18,000 km(2) of early stage exploration
licences in Tanzania's premier gold mining region, the Lake
Victoria Goldfield and within the newly emerging gold exploration
regions in eastern Tanzania.
The Company has recently also acquired, subject to certain
suspensive closing conditions and approvals, coal and uranium
exploration projects as publicly announced on 2 April 2012 in
accordance with its multi-commodity exploration strategy.
Kibo's objective is to enhance Shareholder value through
acquisition, exploration and development of mineral assets in
Tanzania. This objective will be pursued primarily through active
exploration, particularly drilling on its current projects and by
using the Company's experience in Tanzania to acquire further
quality mineral projects on competitive terms that can be quickly
evaluated and taken to the next stage of development. Kibo will
undertake continual risk assessment of its projects and take
whatever actions it believes are necessary to ensure that these
risks are mitigated.
Updates on the Company's activities are regularly posted on its
website www.kibomining.com
London
Corporate and Designated Advisor
River Group
21 June 2012
This information is provided by RNS
The company news service from the London Stock Exchange
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