Three new prospecting licences (PLs) were issued to Kibo Mining’s wholly owned subsidiary Rukwa Coal Ltd.
These newly issued PLs are contiguous with its existing PL block in southern Tanzania that contains the 109 million t Mbeya coal mineral resource. The Resource underpins Kibo’s Mbeya coal to power project (MCPP), currently in the final stages of a Bankable Feasibility Study (BFS).
The three new PLs, namely, PL 10744/2015, PL 10742/2015 and 10743/2015 are located immediately north, south and east respectively of the resource and consolidates the company’s ground position on and peripheral to the MCPP development area.
In the short term, these new PLs will further enhance the BFS and subsequent development of the project and in the longer term provides the company with significantly increased exploration potential.
The new prospecting licenses will provide the company with the ability to test for extensions to the resource and/or the discovery of additional satellite coal deposits in addition to the existing deposit’s 48 km strike of which to date, only approximately 12 km have been delineated and stated as a NI 43-101 compliant resource.
Louis Coetzee, CEO of Kibo Mining, commented: “The addition of these prospecting licences to the company’s Mbeya portfolio completes an important and very strategic consolidation of the ground immediately adjacent to its Mbeya coal resource. This is of significant strategic importance as it secures the long-term fuel supply to the power station, provides confidence that the power plant can ultimately be expanded to 1 000 MW and allays any fears from long-term investors about possible instability in the long-term fuel prices, at which the power station will be able to procure fuel for the power plant. It also demonstrates the Tanzanian government’s ongoing support for and acknowledgment of the strategic importance of the MCPP.”
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/13012016/mbeya-coal-project-exploration-increases-with-additional-prospecting-licences-40/