RNS Number : 8548U
Baobab Resources PLC
20 May 2008
BAOBAB RESOURCES plc
TETE PROJECT - EXPLORATION ACTIVITIES UPDATE
20 May 2008
Baobab Resources plc (AIM:BAO) ('Baobab' or the 'Company'), a Mozambique focused
exploration company is pleased to provide an update on
activities at their Tete project.
Highlights
* Rock chip sampling from Massamba Group vanadiferous titano-magnetite deposits return
average grades of 49% Fe, 21% TiO2 and 0.3%
V.
* High resolution heli-magnetic and radiometric survey completed.
* Bench scale metallurgical test work to determine processing/extraction parameters of
deposits designed and priced by international
consultancy METS.
Overview
The Tete project is located immediately north of the Provincial capital of Tete and is
composed of three contiguous Exploration Licences
that straddle the central portion of the Tete Mafic Complex, covering an area of approximately
632km2. The Licences contain 5 known
vanadiferous titano-magnetite deposits: Singore, located within license 1032L approximately
30km due north of Tete; and the cluster of
prospects known collectively as the Chitongue or Massamba Group, located within 1035L and 55km
north-northeast of Tete.
The deposits are interpreted to represent layered cumulate horizons within an
anorthosite/gabbro package. The horizons outcrop as
topographic highs up to 25m wide and 300m long. In general, it is not possible to determine
with confidence the attitude of the horizons,
however there are indications of moderate to steep dips in some outcrops.
The Complex is considered analogous to the Bushveld Complex and is therefore also
prospective for Platinum Group Metals ('PGM')
mineralisation as well as massive Ni-Cu sulphide deposits.
Tete is fast becoming a major investment centre with mining majors Vale and Riversdale
Mining Limited in the process of opening up the
Moatize and Benga coal fields. The railway connecting Tete to the deep water port of Beira is
being refurbished, as is the port. Power is
readily available from the Cahora Bassa hydroelectric scheme with additional schemes on the
Zambezi River in advanced planning stages. A
coal fired power plant has also been proposed for Benga.
Recent Exploration Activities & Results
Results from recent rock chip sampling of in-situ magnetite outcrops of the Massamba Group
prospects returned average grades of 49% Fe,
21% TiO2 and 0.3% V. As far as can be determined, while the Massamba Group has experienced
some detailed exploration in the past, these are
the first analytical results to come from the area.
It is interesting to note that the Massamba grades are virtually identical to those
reported from Singore (as announced on 5 November
2007) located 25km to the south, indicating that the two project areas may be members of the
same mineralised system that extends over
significantly greater strike lengths than previously anticipated.
Massamba Group outcrop rock chip sample results
Sample ID East North Prospect Rock Type Fe (%) TiO2 (%) V (%)
SiO2 (%) Al2O3 (%) P (%)
23261 573647 8267169 Caangua Massive Magnetite 48.7 20.1 0.35
1 5.55 0.01
23262 573633 8267172 Caangua Massive Magnetite 49.6 21.25 0.367
0.9 5.57 0.008
23263 573665 8267666 Caangua Massive Magnetite 49.4 20.99 0.384
0.69 5.89 0.009
23264 573723 8267169 Caangua Massive Magnetite 47.8 21.45 0.367
0.57 5.6 0.006
23265 574616 8266173 Chitongue Pequeno Massive Magnetite 48 20.74 0.367
1.21 5.63 0.01
23266 574646 8266195 Chitongue Pequeno Massive Magnetite 49.5 20.65 0.366
1.1 5.23 0.008
23267 574620 8266145 Chitongue Pequeno Massive Magnetite 49.8 20.76 0.363
1.29 5.28 0.007
23268 574925 8266160 Chitongue Pequeno Massive Magnetite 47.6 21.02 0.371
0.86 5.57 0.007
23269 575246 8265822 Chitongue Grande Massive Magnetite 48.8 20.51 0.263
2.67 3.99 0.015
23270 574663 8265920 Chitongue Grande Massive Magnetite 49.5 20.07 0.367
0.95 5.2 0.009
23271 574693 8265930 Chitongue Grande Massive Magnetite 48.7 20.59 0.37
0.9 5.29 0.011
23272 574459 8264127 Chimbala Massive Magnetite 49.5 22.18 0.278
0.91 4.52 0.01
23273 574549 8264072 Chimbala Massive Magnetite 50.6 21.37 0.299
1.37 4.61 0.008
23274 574463 8264005 Chimbala Massive Magnetite 48.7 22 0.28
1.66 4.91 0.009
Note: Samples represent composite grab rock chips collected across the magnetite outcrop.Approximate sample weight: 2kgs. All analysis
performed by XRF at ALS Chemex, Perth. Coordinates in WGS84/UTM36S datum.
The Company contracted New Resolution Geophysics to fly a high density heli-magnetic and
radiometric survey over the Tete and Sanangoe
projects. The survey was completed on the 1st of May with processed data grids expected to be
made available by the end of the month.Magnetic imaging should assist in the delineation of known titano-magnetite horizons along
strike as well as identifying other areas of
potential mineralisation underlying recent sediments. Analysis of the data will also aid in
the geological/structural interpretation of the
area and in identifying prospective areas for PGM and base metal mineralisation.
Baobab has contracted internationally recognised consultancy Mineral Engineering Technical
Services ('METS') of Perth, Western Australia
to develop and price bench scale test work to examine the metallurgy of the ore and potential
extraction methodologies for vanadium,
titanium and iron. A decision to proceed with the METS proposal is expected to be made in near
future.
Commenting today, Ben James, the Company's Technical Director, stated:
"Results to date give further credibility to the concept of a large iron ore province of
which only a portion has been previously
recognised. The aeromagnetic interpretation and subsequent ground follow up, complemented by
the proposed metallurgical test work will help
establish the Project's iron ore, PGM and base metal potential and focus the Company's
programme going forward.
"The Company considers the Tete Mafic Complex to be highly prospective and relatively
under explored. This, coupled with the
unprecedented levels of investment into power, transport and mining, makes the Tete area a
premier exploration address."
Download, photography and Figure available from Baobab website at:
www.baobabresources.com
For Further Information please contact:
Baobab Resources plc Tel: +61 (0)8 9430 7151
Brett Townsend Executive Director
Baobab Resources plc Tel: +44 (0)1372 450529
Jeremy Dowler: Non -Executive
Chairman
Grant Thornton Corporate Finance Tel: +44 (0)20 7383 5100
Fiona Owen
Fox-Davies Capital Limited Tel: +44 (0)20 7936 5200
Richard Hail
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCIIFFAEVIIFIT
|