Baobab Resources plc (LON:BAO) Updates On South Zone Drill Results: Continuing To Delineate Substantial Magnetite Mineralisation
London, Feb 22, 2011 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:
- Analytical results have been returned from a three hole RC (reverse circulation) drilling cross section located in Block 1, the southernmost portion of the South Zone prospect. A broad, 140m wide, body of heavily mineralised magnetite is being delineated.
- Mineralised intercepts reported best concentrate grades of:
TRC0031 - two significant intercepts, totaling 59m, including:
25m @ 64.0% Fe, 0.65% V2O5 and 32.3% mass recovery from 32m
TRC0032 - three significant intercepts, totaling 38m, including:
20m @ 65.2% Fe, 0.65% V2O5 and 28.6% mass recovery from surface and
16m @ 64.7% Fe, 0.71% V2O5 and 31.2% mass recovery from 65m
TRC0033 - five significant intercepts, totaling 76m, including:
15m @ 60.1% Fe, 0.74% V2O5 and 29.7% mass recovery from 48m and
48m @ 60.0% Fe, 0.59% V2O5 and 47.1% mass recovery from 91m
- Results from the next Block 1 section expected to become available within the next two weeks. Current drilling continues to delineate substantial mineralisation to the north.
Mr Ben James, Baobab's Managing Director, said: "Block 1 is demonstrating excellent continuity between completed drill sections with current work programmes pushing the model out to the north.
"We are pleased to advise shareholders that all areas drilled to date have delineated substantially wider zones of mineralisation than anticipated. Following earlier positive results, Baobab's exploration management team has designed an expansion drilling programme to test continuations of the ore zones," Mr James said. "The Company recommenced drilling in early February and intends to have 3 RC rigs set to be operational by the end of the month."
Step-out RC Drilling Programme - South Zone Prospect (Massamba Group)
Due to the significant widths and interpreted lateral continuity of mineralisation at the 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 (Blocks 1 to 7) 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 thirty three holes have been completed for an aggregate total of approximately 4,500m. All areas drilled to date have delineated substantially wider zones of mineralisation than anticipated. Baobab's exploration management team has designed an expansion drilling programme, representing an additional 4,000m, to test the down dip and along strike continuations of the ore zones.
Due to the early onset of the wet season in Mozambique, the Company was obliged to suspend drilling operations in mid-December 2010. Drilling recommenced on 9 February with two RC rigs currently on site and a third mobilising this week.
The first nine RC holes were drilled in Block 3 and tested the along strike continuations of mineralisation intersected in scout diamond drill hole TDH0019 over five cross sections. Analytical results from these drill holes were announced to the market on 20 October and 8 November 2010. Due to mechanical issues, drill holes TRC0006 to 9 did not reach their target depths (TRC0007 and 8 ended in mineralisation). These four drill holes will be re-drilled, at the operator's expense, in due course and updated intercepts will be reported as soon as they become available.
Please note that drill holes have not been drilled in sequence, consequently there are gaps in the hole numbering.
Drilling in Block 7, the northern most target area, over three east-west cross sections and an oblique cross section has intersected a stacked, 200m wide sequence of moderately to steeply dipping, heavily mineralised packages over a strike length of more than 300m. Mineralisation remains open both down dip and along strike with potential parallel lodes to the east. Please refer to announcements dated 30 November 2010, 17 and 26 January 2011.
Drilling over two cross sections in the southern limit of the South Zone prospect (Block 1) has a delineated broad, c.140m wide, zone of vertically dipping magnetite mineralisation. The lode is oriented north-south and is cross cut by northeast striking dolerite dykes. Results from the southernmost section are presented below. Further results from this area are expected to become available within the next two weeks. Current drilling in Block 1 continues to delineate substantial magnetite-ilmenite mineralisation to the north.
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).
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. For detailed information on the scout drilling programme, please refer to announcements dated 1 February, 19 February, 17 May, 11 June, 15 July, 12 August, 2 September and 20 October 2010.
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.
For the complete Baobab Resources plc announcement including diagram and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/66108-LON-BAO.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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