Kibo Mining confirmed its flagship Imweru gold project in Tanzania is suitable for early commercialisation following the conclusion of exploration work.
A review of the asset and the resource data gathered from this work demonstrate the potential viability of early gold production from the Imweru project, reports Kibo Mining.
In particular, the review demonstrated Imweru holds sufficient Joint Ore Resource Committee (JORC) compliant resources to support production.
There is a high degree of confidence that additional exploration will add to the resource inventory to supplement existing resources and extend the prospective life of the mine.
Mineralisation appears suitable for traditional processing methodologies and feed ore would be suitable for a variety of processing options, the company said.
“Happily, significant localised infrastructure already exists, thanks to the area being choc-full of mines,” said Kibo in a statement.
Subject to necessary feasibility work, and mine planning, it may be possible to produce gold from Imweru in the near term, the company added.
“The board are delighted with the review findings and notably that this resource potentially could be accelerated into early production, with the significant value generation that this would deliver to the company and its shareholders,” said Louis Coetzee, chief executive officer of Kibo Mining.
“Kibo intends to report regularly with regard to continuing developments at Imweru, alongside news from Rukwa, as we move to value crystallisation at the Coal to Power project,” he added.
The company’s shares surged on Tuesday on the back of the announcement. Shares in Kibo were up 11% in the morning session on Tuesday, according to reports.