Baobab Resources plc (LON:BAO) Expands Massamba Group Global Inventory To Over 150 Million Tonnes
London, Aug 30, 2011 AEST (ABN Newswire) - Baobab Resources plc (
LON:BAO) ("Baobab" or the "Company") is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present a resource update at the Massamba Group of its Tete iron / vanadium / titanium project.
HIGHLIGHTS
- 113Mt Inferred Mineral Resource at South Zone, calculated by international consultancy Coffey Mining Limited in accordance with the JORC code, brings global inventory to c.161Mt.
- South Zone resource reports head grades of 28% Fe, 0.2% V2O5 and 10% TiO2 with an indicative average magnetite concentrate grade of 61% Fe, 0.7% V2O5 and 7.7%TiO2 at a mass recovery of 23%.
- The resource remains open along strike and at depth. Zones of intersected mineralisation remaining unclassified due to drill density and will be the focus of 2012 drilling campaigns.
- Drilling completed at Chitongue Grande Extensions with resource estimation due to commence shortly.
- Drilling nearing completion at Ruoni North and South. First analytical results due out in the coming weeks and resource estimates scheduled for October.
- Sites prepared and camp erected at Tenge in preparation for resource drilling due to commence in early September.
Commenting from the Massamba Camp today, Ben James, Baobab's Managing Director, said: "This excellent outcome from the South Zone drilling campaign is above expectation and reinforces our belief in the prospectivity of the whole district. 160Mt is the tipping point to our milestone 300Mt. With the resource drilling programmes at Chitongue Grande finalised, and all but complete at both Ruoni North and South, we remain confident of delivering on our stated objective for 2011. In addition to these, Tenge also has the potential to add substantial upside - an indication of how much should become apparent before the year end."
Resource Estimate
Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at South Zone. Their estimate of an Inferred Mineral Resource compiled in accordance with the JORC Code is tabulated below (see link at the bottom of the release). Notes on estimation parameters are presented as Annexure 1 (see link at the bottom of the release).
In many areas the resource blocks remain open along strike and at depth, requiring extensional drilling programmes in 2012. Some areas of intersected mineralisation remain unclassified due to insufficient drilling density and will also require further drill definition.
The mineralised horizons contain internal partings of non-mineralised waste material which have not been sampled. Some of this material may not be preferentially mineable and would therefore act as a dilutant. Without sampling the intermediate waste partings, it has not been possible to predict what the expected weight recovery and recovered grades might be. However, based on the completed estimation, the expected average recovery (DTR) for the magnetite portion of the mineralised material will be in the order of 23.1% with the average concentrate grade in the order of 61.4% Fe, 0.66% V2O5, 7.72% TiO2, 1.47% SiO2, 3.15% Al2O3, 0.01% P and 0.33% S.
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 Rio Tinto'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 titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km long trend and the 3.5km long, acruate Tenge / Ruoni prospect to the east.
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.
Tete Exploration Summary
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.
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 titano-magnetite/vanadium and ilmenite (titanium) concentrate commodities.
A scout drilling programme, designed to assess the Chimbala and South zone prospects of the Massamba Group trend, has been completed during 2010 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.
As well as completing the resource drilling at South Zone, 2011 exploration programmes have focused on resource definition at Chitongue Grande Extensions and Tenge/Ruoni:
- The expansion resource drilling campaign at Chitongue Grande has been completed with thirty six reverse circulation (RC) holes drilled for an aggregate total of 6,275m. Down dip and along strike projections of the existing resource have been intersected. Consultants are expected to commence a resource estimation shortly.
- Drilling at Tenge/Ruoni is progressing rapidly. Drilling has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation has been synformally folded with the fold hinge plunging gently to the west-northwest. Exploration campaigns in the prospect area have been divided into three resource blocks:
- Ruoni North: representing 1km of strike along the northern limb of the fold. Twenty five RC and diamond holes have been completed to date across seven traverses for an aggregate total of 4,610m. Drilling has intersected a robust package of mineralisation from surface dipping at 25 degree to 45 degree to the southwest. An additional five drill holes need to be completed before resource estimation work may commence.
- Ruoni South: representing 1.2km of strike along the southern limb of the fold and located approximately 1km south of Ruoni North. Twenty five RC and diamond holes have been completed for an aggregate total of 4,718m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65 degree to the north).
- Tenge: representing the hinge zone of the fold and covering an area of approximately 0.5km2. Drill sites are being constructed in preparation for two diamond rigs scheduled to commence drilling in early September. Approximately 3,000m has been designed to assess the Tenge area.
Metallurgical / Scoping Studies & Pre-Feasibility Planning
Coffey Mining Limited was commissioned to complete a metallurgical study of typical ore domains identified in the Massamba Group. This study is complete and is undergoing peer review with engineering consultants ProMet. The Company will be updating its 2009 scoping study/viability analysis to include the more detailed resource and metallurgical characteristics of the deposit.
Baobab is also receiving tenders for the completion of the various aspects of the Pre-Feasibility Study (PFS) and has retained a consultant to assist with scheduling and cost estimation.
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.
The information in the report which relates to the Mineral Resource is based on information compiled by Iain Macfarlane who is a Member of The Australasian Institute of Mining and Metallurgy and is employed by Coffey Mining Ltd. Mr. Macfarlane has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Reserves". Mr. Macfarlane consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
A COPY OF THIS ANNOUNCEMENT IS AVAILABLE FOR DOWNLOAD FROM THE COMPANY'S NEW WEBSITE www.baobabresources.com
For the complete announcement including tables and Annexure 1, please view:
http://media.abnnewswire.net/media/en/docs/69244-Baobab_150.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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