Johannesburg - Kibo Mining said on Wednesday that development work has officially begun on the Imweru gold project in Tanzania.
The Imweru gold project is the most advanced project within Kibo's regional Lake Victoria Project mineral licence portfolio in the gold prospective region where a number of operating gold mines are in production.
Imweru comprises at least an estimated 515,110 ounces of gold reserves which are compliant to Australian mineral resources stipulations.
Kibo is on a development path to put Imweru into production and realise early cash flow for which the results of high level economic modelling to date have been positive. But the company has agreed to sell the project to Katoro Gold .
The Tanzania focused mineral exploration and development company said operational teams were deployed to site over the past week and the first drill rig is expected to arrive on Thursday.
With the site and drill pad preparation already complete, Kibo said drilling would commence immediately once the rig arrives on site.
Louis Coetzee, Kibo's chief executive and chairman of Katoro Gold, said they were extremely pleased with the successful and rapid start of work on the Imweru project.
"As a result, we are now two months ahead of our previous work programme schedule which initially indicated that drilling would commence in the third quarter of 2017," Coetzee said.
"With this, the capability and capacity of the project team who are responsible for executing the Imweru work program, is also clearly demonstrated."
Kibo Mining is listed on the alternative investment market (AIM) in London and the alternative board (AltX) in Johannesburg stock exchanges.
AFRICAN NEWS AGENCY