Electric Power MOU Signed with National Utility and Operational Update
London, Oct 24, 2013 AEST (ABN Newswire) - Baobab Resources Plc (
LON:BAO) ('Baobab' or the 'Company') is pleased to announce that it has signed a Memorandum of Understanding ('MOU') with Mozambique's state owned energy company, Electricidade de Moçambique ('EDM') to jointly commission a detailed network option study on the Tete Project's power requirements. The MOU signals a significant step towards developing and formalising a power purchase agreement with EDM.
The Company is also pleased to provide a brief operational update on the Bankable Feasibility Study work programmes at the Tete pig iron and ferro-vanadium project.
HIGHLIGHTS
- MOU signed with national power utility company EDM.
- Environmental impact scoping report unconditionally approved by Mozambique authorities. The report forms the basis of the on going Environmental, Social and Health Impact Assessment ('ESHIA'). ESHIA wet and dry season baseline studies have been successfully completed.
- Drilling to elevate the Tenge resource block to a measured category (JORC) is on-going with two reverse circulation ('RC') rigs currently in operation and a diamond rig mobilising to site.
- A significant limestone/dolomite deposit has been discovered 5km to the northwest of the Tenge/Ruoni resource block. Representative rock chip samples, currently being analysed, will determine the deposit's suitability as a source of flux material for the iron making process.
- Bench scale reduction and smelting test work is nearing completion at CSIRO in Australia with detailed results expected in the coming months.
- A bulk sample has been collected and is being despatched for pilot-scale comminution, beneficiation and reduction test work prior to smelting studies.
Commenting today, Ben James, Baobab's Managing Director, said: 'The MOU is a significant milestone for Baobab in its on-going negotiations with the public and private sectors for securing access to requisite infrastructure. The Company looks forward to working with EDM to outline a definitive power solution for the Tete project.
'Other operational aspects of the Bankable Feasibility Study are progressing at pace. Rig availability in Tete has been working in Baobab's favour, allowing for the acceleration of the measured resource drilling programme at the Tenge resource block. In addition, the discovery of a limestone/dolomite resource in such close proximity to the proposed operation is of strategic importance.
'Baobab is also very pleased to announce the approval of the environmental scoping report which, coupled with the completed Pre-Feasibility Study, forms the core documentation for a mining title application.'
MEMORANDUM OF UNDERSTANDING
A Memorandum of Understanding ('MOU') has been signed between the Company and Mozambique's state owned energy company, Electricidade de Moçambique ('EDM'). As part of the MOU, both parties agree to jointly commission a detailed network option study that will identify and prioritise potential power sources and operating structures and accurately estimate tariff rates. Baobab has engaged internationally respected specialist consultants, Parsons Brinckerhoff, to complete the study, the results of which will be incorporated in to the Bankable Feasibility Study.
To view the full update, please visit:
http://media.abnnewswire.net/media/en/docs/76082-bao-20131024.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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