RNS Number : 9502W
Baobab Resources PLC
18 June 2008
TETE PROJECT - MASSAMBA AREA AIRBORNE GEOPHYSICAL
INTERPRETATION
18th June 2008
Baobab Resources plc (AIM:BAO) ('Baobab' or 'the Company'), a Mozambique focused mineral
exploration company is pleased to present the
results of an interpretation of a portion of the recently completed aeromagnetic survey
covering the Massamba Group vanadiferous
titano-magnetite prospects within the Tete project.
Highlights
* The Massamba Group vanadiferous titano-magnetite prospects are co-incident with
significant magnetic anomalies.
* Geophysical modeling of these magnetic anomalies indicates that the magnetite bodies are
sub-vertical, varying in width from 50m to
450m and continuous over strike lengths of up to 3.5km, with a combined strike length in
excess of 8km.
* Bulk density analyses of titano-magnetite rock samples from the Massamba area have
returned an average specific gravity (g/cm3) of
4.3, significantly higher than previously anticipated.
* Previously reported rock chip sampling from Massamba Group returned average grades
of 49% Fe, 21% TiO2 and 0.3% V (refer to press
release dated 20 May 2008).
* The modeled depth to the top of the magnetic anomalies is generally shallow (0 to
50m).
* Field verification of magnetite highs has located previously unrecorded outcrops of
magnetite, further supporting the geophysical
interpretation.
* Consultants have been commissioned to determine the metallurgical characteristics of
the deposits and the economics and potential
processes for recovering either a vanadium product or a combination of pig iron, vanadium and
titanium products.
* The geophysical data supports the interpretation of a large potential tonnage of
titano-magnetite in the Massamba area.
Overview
The Tete project is located immediately north of the Provincial capital of Tete and
comprises 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 Massamba Group, located within
1035L and 55km north-northeast of Tete.Recent rock chip sampling from Massamba Group returned average grades of 49% Fe, 21% TiO2 and
0.3% V (refer to press release dated 20 May
2008).
The Complex is considered analogous to the Bushveld Complex and is therefore also
prospective for Platinum Group Metal (PGM)
mineralisation as well as massive Ni-Cu sulphide deposits.
Tete is fast becoming a major investment centre with mining majors Vale and Riversdale 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 in
advanced planning stages. A coal fired power
plant has also been proposed for Benga.
Geophysical Interpretation
The Company's consultant geophysicist, Hawke Geophysics Pty Ltd, has completed an
interpretation of a portion of the recently acquired
high resolution aeromagnetic data covering the Massamba area (approximately 110km2). The area
comprises the Massamba Group of vanadiferous
titano-magnetite deposits, namely the Chitongue Grande, Chitongue Pequeno, Chimbala and
Caangua prospects.
Three significant trends have been identified for further investigation:
* The Chitongue Grande - Chimbala Trend: a broad zone of strong magnetic response
continuous over a north-south strike length in
excess of 3.5km and containing the Chitongue Grande prospect and the Chimbala prospect in its
northern and central portions respectively.
* The Chitongue Pequeno - Caangua Trend: The Chitongue Pequeno and Caangua prospects
appear to flank a narrower, northwest oriented
anomaly approximately 2.5km in length.
* Southern Trend: Re-appearance of the Chitongue Grande - Chimbala trend to the
southwest after a zone of tectonic disruption where
it may be traced over a strike length of 2.5km.
The interpretation included profile modeling of the magnetic data to determine the
geometry of the magnetic sources for selected areas
of high magnetic intensity. Five sections were selected: three transecting the Chitongue
Grande - Chimbala Trend, one crosscutting the
Chitongue Pequeno - Caangua Trend, and an additional profile through the Southern Trend.
Chitongue Grande - Chimbala Trend
Modeling of profile data across the Chitongue Grande prospect shows the source of the main
magnetic anomaly to be due to two parallel,
200m wide, sub-vertical bodies at depths from surface ranging from 30 to 50m. A third body, of
lower magnetic amplitude, is modeled
immediately to the east and is estimated to be approximately 150m wide.
The magnetic anomalism underlying the Chimbala prospect (2km south of Chitongue Grande) is
modeled as a series of semi-continuous
bodies, with depths from surface ranging from 20m in the west to 45m in the east. The
individual bodies are interpreted to be sub-vertical
and between 100m and 450m in width. It is not certain whether the modeled bodies represent
folding or fault repetition of the trend seen in
the Chitongue Grande area to the north, or whether the source was thicker in this central
region during emplacement.
Modeling of an oblique section across the southern limit of the Chitongue Grande -
Chimbala trend (approximately 2km southwest of the
Chimbala prospect) suggests the majority of the magnetic source is much deeper (>100m) than on
the sections to the north. This may represent
deeper burial (possibly down faulting), or alternatively deeper weathering, of the magnetic
source rock. Two discrete bodies have been
modeled with widths of 75m and 300m.
Chitongue Pequeno - Caangua Trend
A single profile was modeled across the 2.5km long, northwest trending anomaly flanking
the Chitongue Pequeno and Caangua prospects. The
main magnetic anomaly along this section is due to a relatively narrow, 50m wide sub-vertical
body from 12m depth.
Southern Trend
Magnetic modeling across the 2.5km long southern continuation of the Chitongue Grande -
Chimbala trend shows two main magnetic zones
each composed of two smaller, parallel magnetic sources. Each magnetic 'bed' appears to be
steeply west dipping and has a modeled thickness
of between 85 and 100m. Depth to magnetic response is estimated at 0 to 25m.
All bodies described above have modeled magnetic properties which would be in the normal
range for banded iron formation (BIF).
Field verification, density determinations & bulk sampling
To complement the geophysical modeling, a number of the magnetic anomalies discussed above
were selected for field checking under the
supervision of international consultancy Coffey Mining Pty Ltd. Previously unreported
titaniferous magnetite outcrops were identified at
most of these target locations.
A total of 11 titano-magnetite rock chip and float samples were collected in the Massamba
area during the field verification for multi
element analysis and bulk density determinations. Results from the bulk density work completed
at the ACT-UIS laboratory in Tete returned an
average 'in ground' specific gravity (g/cm3) of 4.3, significantly higher than anticipated. A
complete list of results is tabulated below:
Massamba Group Real Density Determinations
Sample ID East North Spec. Grav [g/cm³] Rock Type
MAS01 571719.52 8262272.88 2.9 Massive magnetite
MAS02 572804.79 8261762.17 4.48 Massive magnetite
MAS04 572294.08 8261054.14 3.17 Massive magnetite
MAS05 571620.86 8259893.42 4.21 Massive magnetite
MAS06 571469.97 8259028.69 4.48 Massive magnetite
MAS07 571446.76 8258071.1 4.52 Massive magnetite
MAS09 574685.14 8263126.01 4.62 Massive magnetite
MAS10 574336.93 8264513.05 4.41 Massive magnetite
MAS12 574464.61 8265789.84 4.53 Massive magnetite
MAS18 575265.5 8267316.17 5.4 Massive magnetite
MAS19 574940.5 8268436.26 4.77 Massive magnetite
Note: Samples represent rock chip specimens collected from magnetite outcrop or float. All
density determinations performed at ACT-UIS
Laboratorios de Mombique Lda, Tete. Coordinates in WGS84/UTM36S datum.
The Company has commissioned internationally recognised consultancy Mineral Engineering
Technical Services (METS) to manage bench-scale
test work to determine the metallurgical characteristics of the vanadiferous titano-magnetite
and the economics and potential processes for
recovering either a vanadium product or a combination of pig iron, vanadium and titanium
products. A 300kg bulk sample has been collected
from the Massamba area and is in the process of being shipped to Australia.
Commenting today, Ben James, the Company's Technical Director, stated:
"We believe the results of the geophysical interpretation significantly upgrade the
potential of the Massamba area to host large
tonnages of ore. Findings of the recent field verification programme have reinforced the fact
that this highly prospective terrain has
experienced limited previous economic exploration, presenting the opportunity for making major
new discoveries.
"We look forward to reviewing the results of the metallurgical test work which will direct
our future exploration initiatives in this
area. With the price of vanadium being directly linked to steel production and the level of
demand for steel showing no sign of abating, it
is intended to commence drilling campaigns as soon as results dictate."
18th June 2008
Download press release, complete geophysical report and figures from the Baobab website
at: www.baobabresources.com
The information in this release that relates to Exploration Results is based on
information compiled by Technical Director Ben James
(BSc). Mr James is a Member of the Australian Institute of Mining and Metallurgy, is a
Competent Person as defined in the Australasian Code
for Reporting of exploration results and Mineral Resources and Ore Reserves. and consents to
the inclusion in the report of the matters
based on the information in the form and context in which it appears.
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
Daniel Fox-Davies
This information is provided by RNS
The company news service from the London Stock Exchange
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