Kibo Mining PLC (LON:KIBO) has significantly upgraded the status of the resources at its Mbeya coal-fired power development in Tanzania.
A drilling programme has seen the resource overall rise by 10.4% to 121 mln tonnes (Mt) out of which 20.9Mt are now considered high confidence measured resources and 88.6Mt in the next highest indicated category.
Indications of the coal quality were also within the specifications for the power plant, Kibo added.
Louis Coetzee, Kibo’s chief executive, said: "The restated Mbeya coal resource is a further example of the MCPP feasibility study exceeding our expectations.
The work undertaken was primarily aimed at improving confidence levels in the resource, to enable the MDFS to state an appropriate coal reserve.
"This objective was exceeded, with 91% of the total resource now in the Measured and Indicated categories. An unexpected 10.4% increase in the overall resource was also delivered."
Coetzee added the new resource means there will be sufficient coal at the site to expand the plant in future.
Kibo plans to build a 350 megawatt (Mw) thermal power station at Mbeya using coal sourced from its adjacent Rukwa deposit that potentially may rise to 1,000 Mw.
“We continue to make good progress with all three main work streams of the MCPP integrated feasibility study and overall progress remains on schedule,” Coetzee added.
Financial close on the project is expected by the end of this current quarter in June.