Baobab Resources plc (LON:BAO) Updates On South Zone Drilling At The Tete Iron/Vanadium/Titanium Project In Mozambique
London, Oct 21, 2010 AEST (ABN Newswire) - Baobab Resources plc (
LON:BAO), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique, is pleased to present an update on the exploration activities currently underway at the Tete iron/vanadium/titanium project.
Highlights:
- Step-out reverse circulation (RC) drilling is progressing steadily at the South Zone prospect with 3,000m completed at time of writing. The first three drill holes have returned mineralised intercepts reporting best concentrate grades of:
TRC0001 - five significant intercepts, totaling 74m, including:
40m @ 56.5% Fe, 0.5% V2O5 and 61.5% mass recovery from 78m
TRC0002 - two significant intercepts, totaling 37m, including:
13m @ 56.6% Fe, 0.54% V2O5 and 27.9% mass recovery from 32m
TRC0003 - four significant intercepts, totaling 71m, including:
68m @ 57.6% Fe, 0.7% V2O5 and 21.1% mass recovery from 0m
- Drilling in the north of the South Zone prospect area has intersected a stacked series of steeply dipping, heavily mineralised packages over a width of 200m (open at depth).
- Analytical results have been returned for the final scout diamond drill holes at Chimbala and South Zone. Drilling intersected steeply dipping packages of mineralisation with selected significant mineralised intercepts reporting concentrate grades of:
TDH0044 (Chimbala) - three significant intercepts, totaling 29.5m, including:
10.5m @ 59.2% Fe, 0.63% V2O5 and 33.7% mass recovery from 18.5m
TDH0046 (South Zone) - two significant intercepts, totaling 22.5m, including:
15.5m @ 59.55% Fe, 0.61% V2O5 and 28.6% mass recovery from 67.5m
TDH0048 (South Zone) - nine significant intercepts, totaling 118.5m, including:
5.5m @ 63.5% Fe, 0.65% V2O5 and 33.9% mass recovery from 344.5m
- The Company expects the next round of RC drill results to be available by mid November 2010.
- Baobab is also pleased to inform investors that all exploration licences are currently in good standing with the tenure of those licences due for renewal granted extensions of between two and five years (four years for all Tete project licences).
- please note that most drill intercepts represent the depth extension of vertical to steeply dipping mineralisation mapped on surface.
Commenting today, Ben James, Baobab's Managing Director, said: "Drilling in the northern portions of the South Zone prospect is delineating a broad, robust package of mineralisation and we look forward to reviewing the analytical results as they come to hand. We hope to be able to source a second RC rig in the near future to accelerate the drilling campaign.
"The final Chimbala scout drilling results are also encouraging and the programme has successfully identified priority areas at Chimbala to be tackled during the 2011 resource drilling campaign."
Step-out RC Drilling Programme - South Zone Prospect (Massamba Group)
Due to the significant widths and interpreted lateral continuity of mineralisation at South Zone, the prospect has been prioritised for step-out reverse circulation (RC) drilling. The programme is systematically assessing a sequence of seven mineralised zones over a strike length of some 2km, drilling on traverses spaced 100m apart.
A total of 50 RC drill holes have been planned for a combined meterage of 7,000m. Drilling commenced in August and to date twenty three holes have been completed for an aggregate total of approximately 3,000m. Substantial widths of magnetite-ilmenite mineralisation have been intersected in most drill holes; particularly over the northern most target where a section of five RC holes flanking scout diamond drill hole TDH0019 has intersected a stacked series of steeply dipping, heavily mineralised packages over a width of 200m (open at depth).
The Company is currently trying to secure a second RC drill rig to improve productivity and accelerate the drilling campaign.
Analytical results from the first three RC drill holes, drilled along strike from scout diamond drill hole TDH0016, have been received with significant intercepts tabulated below. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 4m), Davis Tube Recovery (DTR) and Xray Fluorescence Spectrometry XRF analysis.
It is the Company's intention to combine the results of the scout diamond drilling and RC programmes to estimate a global resource for the South Zone prospect.
Scout Drilling Programme - Chimbala & South Zone Prospects (Massamba Group)
A scout drilling programme, designed to assess the Chimbala and South zone prospects of the Massamba Group trend, has been completed for an aggregate total of approximately 7,500m. The purpose of the campaign has been two-fold: to improve confidence in the Company's Exploration Target and to clarify geological domains for continued metallurgical test-work.
South Zone Scout Drilling
The South Zone prospect was first recognised by the Company during its 2008 high resolution aeromagnetic survey, as a 2.5km long north-south zone of high magnetic response immediately south of the known Massamba Group prospects. The primary iron, vanadium and titanium mineralisation occurs as cumulate sequences within the gabbro / anorthosite suite. A secondary phase of mineralisation, in the form of a vertical massive magnetite-ilmenite intrusive dyke, outcrops as a chain of small ridges along the western margin of the magnetic anomaly. The dyke has an apparent thickness in excess of 20m and appears to crosscut the primary mineralisation. Post-mineralisation tectonics has segregated the prospect into at least 5 discrete fault blocks.
Three diamond drill holes were completed at the South Zone prospect in 2009 prior to the onset of the wet season. A further six diamond holes have been completed this year bringing the total metres drilled at the prospect to 2,127m. Drill holes targeted magnetite-ilmenite outcrops and linear trends of strong magnetic response. All holes have intersected substantial packages of steeply dipping mineralisation of between 20 and 100m (true width) with selected significant mineralised intercepts reporting concentrate grades of:
- TDH0016 - seven significant concentrate intercepts, totaling 123m, including:
7.5m @ 57.1% Fe, 0.49% V2O5 and 59.8% mass recovery from 179.0m
- TDH0017 - one significant mineralised intercept recording concentrate grades of:
43.5m @ 64.5% Fe, 0.66% V2O5 and 36.6% mass recovery from 56m
- TDH0018 - two significant concentrate intercepts, totaling 82.5m, including:
55.0m @ 62.9% Fe, 0.73% V2O5 and 23.3% mass recovery from 25.0m
- TDH0019 - five significant intercepts, totaling 98.5m, including:
65.5m @ 59.48% Fe, 0.61% V2O5 and 34.7% mass recovery from 46m
- TDH0045 - seven significant intercepts, totaling 192m, including:
51.0m @ 60.5% Fe, 0.63% V2O5 and 33.0% mass recovery from 77.5m
- TDH0047 - three significant intercepts, totaling 87.5m, including:
43.5m @ 58.9% Fe, 0.59% V2O5 and 31.3% mass recovery from 95m
For a complete list of South Zone significant intercepts, please refer to RNS announcements dated 1 February, 19 February and 2 September 2010.
For the most part, South Zone results characterise a distinct, higher mass recovery, ore domain to that encountered in the Chitongue Grande resource area and a detailed metallurgical study has been commissioned to determine how to optimise the mineral processing of the various domains. Analytical results from the remaining three South Zone scout holes (TDH0046, 48 and 49) have been returned with significant intercepts tabled below. Drill holes TDH0046 and 49 tested theoretical targets marginal to the main trends of strong magnetic response, while TDH0048, drilled midway between holes TDH0016 and TDH0045, intersected mineralised gabbros of a similar tenor to the Chitongue Grande ore domain.
Chimbala Scout Drilling
The Chimbala prospect comprises the central portion of the Massamba Group trend and is underlain by a 3km long zone of strong aeromagnetic response. Limited historical exploration has taken place in the prospect area. Baobab commenced drilling operations at the Chimbala prospect on 10 March 2010 and has completed 25 diamond drill holes for an aggregate total of 5,378m. The drilling programme was designed to test zones of strong magnetic response over an area of 3km2. The drilling has intersected packages of both cumulate and intrusive style magnetite-ilmenite mineralisation intercalated with gabbroic and anorthositic country rock.
Analytical results from the first twenty three Chimbala diamond drill holes (TDH0020 to 42) were announced on 17 May, 11 June, 15 July and 12 August 2010. Hole TDH0025 failed to intersect substantial mineralisation and was not sampled. Analytical results from the remaining Chimbala scout drill holes (TDH0037, 43 and 44) have been returned with significant intercepts tabled below.
Coordinate system WGS84 UTM zone 36S. All samples were submitted to Davis Tube Recovery (DTR) analysis conducted at the ALS Laboratory Group in Perth, Western Australia, at a 38µm fraction and 3000G. Head and magnetic concentrate sub-samples were analysed by X-ray Fluorescence Spectrometry (XRF). All values are calculated as weighted averages over the reported interval. Maximum length of internal dilution = 4m. Only intervals with a calculated mass recovery of >10% are presented. Interval lengths are measured down-hole and should not be interpreted as true width.
Tete Project - Overview
The Tete Project, covering an area of 632km2, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Riversdale's mega coal projects.
The project is strategically located to access abundant, low tariff hydro-electric power from existing and developing schemes on the Zambezi River. The ports of Beira and Nacala are being refurbished, as are the rail corridors through to Tete.
The project contains two areas of magnetite-ilmenite mineralisation:
- The Singore area to the south; and
- The Massamba Group trend in the north. The 8km long Massamba Group trend is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) that have experienced little or no historical exploration.
The Company commenced exploration initiatives in mid 2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective (refer to announcement dated 28 January 2010 for results to date).
Work completed by the Company during 2009 culminated in the estimation of a 47.7mt maiden Inferred Mineral Resource over a 500m portion of the Chitongue Grande prospect and a 400mt to 700mt Exploration Target over the broader Massamba Group area.
Independent scoping metallurgical studies and financial modelling indicate positive project economics in the production of high quality magnetite (iron and vanadium) and ilmenite (titanium) concentrate commodities (refer to announcements dated 24 September 2009, 29 September 2009 and 8 October 2009).
Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.
Tenure Status
Baobab is pleased to announce that all exploration licences due for prorogation have been granted extensions of between two and five years, with the Tete project licences being extended for four years. The licences are held by Capitol Resources Limitada, a wholly owned subsidiary of Baobab Resources Plc.
The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
For the complete Baobab announcement including tables and figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63995-Baobao20101020.pdf
About Baobab Resources plc
Baobab Resources plc (LON:BAO) is a Mozambican-focused explorer with a large landholding in the central north of the country. The company's flagship project is the Tete iron ore deposit.
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