11th Apr 2016 08:11
LONDON (Alliance News) - Kibo Mining PLC on Monday said it has completed the update to the mineral resource at the Mbeya coal-to-power project in Tanzania, unveiling more than a 10% rise in the total amount of coal thought to lie within the project.
The restatement has led to the total mineral resource at Mbeya to increase to 120.8 million tonnes of coal from the previous resource of 109.2 million tonnes.
Of that total mineral resource, 20.9 million tonnes is now classified as a measured resource, 88.6 million tonnes is classified as an indicated resource, and the remaining 11.3 million tonnes are classified as an inferred resource.
Previously, none of the coal at Mbeya was classified as a measured resource, with 71.3 million tonnes being classified as an indicated resource whilst the other 38.1 million tonnes was classified as an inferred resource.
Importantly, that means 91% of the new total mineral resource is classified as either measured or indicated, allowing it to be included in Kibo's ultimate reserve statement for Mbeya.
"The work undertaken was primarily aimed at improving confidence levels in the resource, to enable the Mbeya definitive feasibility study to state an appropriate coal reserve," said Chief Executive Louis Coetzee.
The restatement also confirmed that the coal at Mbeya is of the right specification to feed into the power plant that Kibo plans to build.
"We continue to make good progress with all three main work streams of the Mbeya coal-to-power integrated feasibility study and overall progress remains on schedule," Coetzee added.
Kibo has been developing the project in two stages, one focusing on the mining operation and the other focused on the power plant which will be fed with the coal taken from the mine. A study has been conducted on both elements, and are now being integrated into one definitive feasibility study to allow the project to progress further.
Kibo shares were trading up 4.3% to 3.65 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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