Baobab Resources Plc (LON:BAO) Exceeds 300Mt Global Resource Target with Ruoni South
London, Dec 7, 2011 AEST (ABN Newswire) - Baobab Resources Plc (
LON:BAO) 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
- Massamba Group global resource base expanded to 324Mt (JORC) with the completion of the Ruoni South resource estimate.
- Ruoni South 56Mt Inferred Resource reports a head grade of 34% Fe with an average concentrate grade of 62% Fe, 0.9% V2O5 and 8% TiO2 at a mass recovery of 34%.
- The Ruoni South resource complements the 93Mt estimate at Ruoni North and delivers a higher quality concentrate at a competitive mass recovery.
- Drilling programmes at the contiguous Tenge deposit are all but concluded, with 24 drill holes completed for an aggregate total of c.4,500m. Drilling is defining a substantial package of mineralisation, approximately 120m thick, that comprises a significant portion of the 100m high Monte Tenge and dips shallowly towards the west. Initial analytical results are expected during December with a resource statement scheduled for February 2012.
Commenting today, Ben James, Baobab's Managing Director, said: "Baobab is very pleased to present the Ruoni South resource estimate which expands the global inventory beyond the 300Mt milestone and in doing so demonstrates the Company's commitment to not just deliver on stated targets, but to exceed them. The indicative quality of the Ruoni South concentrate is encouraging, particularly the higher vanadium grade, and opens a range of production possibilities to be considered during the pre-feasibility study.
"The Tenge drilling is defining a significant package of mineralization that will add substantially to the resource inventory early in 2012. The Project is maturing rapidly, due largely to the accelerated drilling campaigns this year, and the Management recognises the extraordinary effort and commitment made by the technical teams in the field. 2012 will see the status of the Project transition from one of exploration to one of development in what is shaping up to be the most exciting mining address in southern Africa."
Resource Estimate
Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at Ruoni South. Their estimates of Inferred Mineral Resources, including the South Zone estimate (announced on 30 August 2011), Chitongue Grande and Ruoni North (both announced on 31 October 2011), are summarised below (see link at the bottom of the release). All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on the Ruoni South 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.
Due to consistent sampling and analytical protocols, including routine Davie Tube Recovery (DTR) determinations, across mineralised and non-mineralise waste material at Ruoni South, Coffey Mining has been able to predict the expected average concentrate characteristics for the mineralised material to an inferred level of confidence:
- Ruoni South: 61.7% Fe, 0.93% V2O5, 7.96% TiO2, 1.04% SiO2, 3.10% Al2O3, 0.001% P and 0.22% S at a Mass Recovery of 34.5%.
The expected weighted average concentrate characteristics for the global 323.5Mt Inferred Resource are 60.2% Fe, 0.8% V2O5, 9.7% TiO2, 1.1% SiO2, 3.3% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 31.4%.
Where no lower cut-off grade has been applied, the resource blocks have been constrained by geologically defined mineralised zones and therefore reported accordingly; it is currently assumed that mining selectivity is limited within the mineralised zones. Three-dimensional block models were generated for the Ruoni South deposit to enable grade estimation. Coffey Mining has based its grade interpolation on Ordinary Kriging. Grade was interpolated based on 4m composite samples using domain control for both composite and block selections applying hard boundaries between the zones.
Ordinary Kriging was also used to obtain estimates of DTR and service variables for Ruoni South. The concentrate grades (Fe, V2O5, TiO2, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, Na2O and S) were then back calculated from these estimates. For the concentrate grades of all other resource blocks, a service variable approach to the estimation of block concentrate grades is required to account for the variation in the percent weight.
On-going Resource Drilling: Tenge/Ruoni Prospect
Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is nearing completion and 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 westnorthwest.
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. Thirty seven reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of c.5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25degree to 50degree to the southwest.
The 93Mt Ruoni North resource estimate was announced to the market on 31 October 2011 and formed the resource base for a scoping study (also completed by Coffey Mining). The scoping study returned outstanding results, including a before tax US$1.4B net present value (NPV at 10% discount) and 34% internal rate of return (IRR) in the beneficiation and smelting of a pig iron product, that were announced on 31 November 2011.
- Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65degree to the north). The 56Mt resource estimate is discussed in detail above.
- Tenge: representing the hinge zone of the fold, covering a strike length of approximately 1.3km, and defined by the Monte Tenge ridge which elevations of up to 100m above the local plateau. The drilling programme is nearing completion with 24 diamond and RC holes completed to date for an aggregate total of 4,518m. Drilling has outlined a c.120m thick package of strongly mineralised material that comprises a significant portion of Monte Tenge ridge and dips gently towards the west.
Consultant, Coffey Mining Pty Ltd, will commence modelling of the Tenge resource block shortly with a resource statement scheduled for February 2012. The Company anticipates receiving the first analytical results from Tenge during December.
For the complete Baobab Resources announcement including tables and Annexure 1, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/70921-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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