Baobab Resources Plc (LON:BAO) the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to present the results of the resource estimation at the Ruoni Flats block of the Tenge/Ruoni prospect, one of six resource blocks in at its 85% owned Tete Pig Iron, vanadium and titanium Project (IFC (International Finance Corporation) hold a 15% participatory interest).
HIGHLIGHTS
- Tete global resource base has expanded to 665Mt (JORC), over 490Mt of which is defined at Tenge/Ruoni, firmly establishing the prospect area as a standalone asset.
- The Ruoni Flats 183Mt Inferred Resource reports a head grade of 37% Fe and an average concentrate grade of 61.4% Fe, 0.9% V2O5 and 9.4% TiO2 at a mass recovery of 41.7%.
- The 2012 drilling season has been completed for an aggregate total of 16,300m. Programmes included resource upgrade drilling at the Ruoni North, Ruoni South and Tenge resource blocks. Updated Indicated Resource statements are expected to be finalised during January 2013.
- The Tete Pig Iron Pre-Feasibility Study (PFS) is on schedule for completion this year, with results announced in early February 2013.
Commenting today, Ben James, Baobab's Managing Director, said: 'The Company is very pleased to present the Ruoni Flats resource statement. Baobab is now able to realistically consider significantly larger production options at Tete, with the expanded 490Mt Tenge/Ruoni resource base sufficient on its own to underpin a 4Mtpa Pig Iron operation over an impressive life of mine of c.35 years. At 4Mtpa, the project would become the world's single largest producer of Pig Iron.
'Importantly, the 490Mt Tenge/Ruoni footprint is just 3km2, with much of the Tenge block forming significant topographic relief. The resultant short haulage distances and low stripping ratios will have a tangible impact on mining costs. Baobab's management team looks forward to presenting the results of pit optimisation and mine scheduling studies, along with other aspects of the finalised Pre-Feasibility Study, in early 2013.'
RUONI FLATS RESOURCE STATEMENT
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.
Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at Ruoni Flats. 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), Ruoni South (announced on 7 December 2011) and Tenge (announced on 5 March 2012), are summarised below. All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on the Ruoni Flats estimation parameters are presented as Annexure 1.
Due to consistent sampling and analytical protocols, including routine Davis Tube Recovery (DTR) determinations, across mineralised and non-mineralise waste material at Ruoni Flats, Coffey Mining has been able to estimate the expected average concentrate characteristics for the mineralised material to an inferred Resource level of confidence: 61.4% Fe, 0.9% V2O5, 9.4% TiO2, 0.9% SiO2, 3.2% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 41.7%.
The expected weighted average concentrate characteristics for the global 665.4Mt Inferred Resource are in the order of 60.6% Fe, 0.8% V2O5, 10.4% TiO2, 1.0% SiO2, 3.3% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 38.1%.
View the full table of figures at:
http://media.abnnewswire.net/media/en/docs/74340-lon_bao_2012_12_03.pdf
