Measured Resources Underpin a Minimum of 20 Years of Operation at 39% Fe Head Grade
London, Mar 27, 2014 AEST (ABN Newswire) - Baobab Resources Plc (
LON:BAO), the Mozambique focused resource development company, is pleased to provide the following summary of the Measured resource estimation of the Tenge resource block at the Company's 85% owned Tete pig iron and ferro-vanadium project (the 'Tete Project') in which International Finance Corporation ('IFC') hold a 15% participatory interest.
HIGHLIGHTS
- Based on the results of infill drilling programmes completed during 2013, international geology and mining specialist, SRK Consulting (South Africa), has concluded a review and reclassification of the Tenge resource block. All work has been completed in accordance with the updated JORC 2012 code guidelines.
- Geological remodelling has enlarged the Tenge resource by 29Mt to 222Mt, with the following classifications:
MEASURED: 156Mt @ 38% Fe & 0.42% V2O5
INDICATED: 66Mt @ 34% Fe & 0.38% V2O5
- The Tete Project's global resource base now reports 759Mt (JORC 2004 & 2012), of which 585Mt is defined underlying the 2.5km2 footprint of the Tenge/Ruoni prospect (156Mt Measured, 167Mt Indicated and 262Mt Inferred).
- All 62Mt of resource material contained within the Tenge starter pit shell, designed during the 2013 Pre-Feasibility Study to underpin the first 20+ years of operation at 1Mtpa pig iron production, has been classified as Measured and reports an average head grade of 39% Fe.
- The pit shell will be revised and expanded to incorporate additional, previously unclassified, resources during the next phase of pit optimisation, mine scheduling and Reserve classification.
- The 156Mt Measured resource estimation far exceeds the Company's initial target of resources supporting the first 10 years of operation (c.30Mt).
- This important milestone is a key prerequisite for furthering meaningful discussion with commercial and development funding institutions.
- Bench scale smelting and pilot scale reduction test work programmes are making good progress, with an update due shortly.
Commenting today, Ben James, Baobab's Managing Director, said: 'Today's resource statement marks a significant milestone for Baobab, substantially de-risking the Tete Project and consolidating a firm base on which to build a large scale, long life, high margin pig iron and vanadium operation. The classification of a minimum 20 years of operation in a Measured category, particularly to the exacting standards of the revised JORC 2012 code, is a phenomenal result and underlines the robust geological and geochemical continuity of the deposit.
'Baobab's technical team continues to work systematically through the Definitive Feasibility Study, prioritising areas of perceived risk, and the Company looks forward to keeping investors up to date with developments.'
TENGE/RUONI PROSPECT & TENGE RESOURCE UPGRADE
Tenge/Ruoni is the easternmost prospect area of the Massamba Group, Tete Project. Mineralisation in the area has been synformally folded with the fold hinge plunging gently to the west-northwest. The northern and southern limbs of the fold comprise the Ruoni North and Ruoni South resource blocks, while the outcropping fold hinge comprises the Tenge resource block to the east. The buried central portion of the fold comprises the Ruoni Flats resource block.
SRK Consultants (South Africa) Pty Ltd ('SRK'), has completed a review and update of the Tenge block resource estimate based on the results of the infill drilling campaign and large scale trenching completed during 2013. The estimation has been completed in accordance with the updated and improved 2012 Joint Ore Reserves Committee (JORC 2012) Code guidelines.
The 2013 infill drilling campaign was focused on converting the upper portions of the Tenge resource block, representing the first 10 to 15 years of a 1Mtpa pig iron operation, to a JORC compliant Measured category. Prior to the infill drilling campaign, the Tenge resource block was classified as 72.6Mt Indicated and 120.3Mt Inferred for a total tonnage of 192.9Mt (JORC 2004), please refer to RNS dated 21 February 2013 for details.
SRK's remodelling identified an additional 29Mt, bringing the total Tenge resource to 222Mt and expanding the Tete Project global resource to 759Mt. The 222Mt has been classified as 156Mt Measured and 66Mt Indicated and divided into three categories: 'Residual', representing the thin, 2m to 3m, heavily oxidised surface layer; 'Weathered', representing the partially oxidised upper portions of the deposit and; 'Fresh', representing the non-oxidised lower portions of the deposit where no weathering has been detected. The Tenge resource estimate is summarised in Table 1 below along with and the previously published JORC 2004 Inferred and Indicated resources at Ruoni North, Ruoni South, Ruoni Flats, South Zone and Chitongue Grande. Notes on the Tenge resource estimation parameters are presented as Annexure 1 in link below.
SRK also estimated the resource contained within the Tenge starter pit shell, designed during the 2013 Pre-Feasibility Study to underpin the first 20+ years of operation at 1Mtpa pig iron production. All 62Mt of resource material contained within the pit shell has been classified as Measured and reports an average head grade of 39% Fe (Table 2). The improved head grade represents an overall enrichment of the upper zones of the deposit and is in line with initial reverse circulation (RC) drilling and trenching results reported in the RNS announcements of 20 December 2013 and 12 February 2014.
The pit shell will be revised and expanded to incorporate the Measured resource and additional, previously unclassified, resources during the next phase of pit optimisation, mine scheduling and Reserve classification. This next phase of work will commence during July 2014, once a limited programme of geotechnical and hydro-geological drilling has been completed.
SRK has estimated the expected average concentrate characteristics for the mineralised material for the combined Measured and Indicated Tenge resource block as: 59.4% Fe, 0.85% V2O5, 10.9% TiO2, 0.9% SiO2, 3.2% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 44.2%. It is anticipated that the concentrate will receive a JORC classification during the next phase of work.
To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/76814-LON-BAO-20140327.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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