TIDMNRRP TIDMBAO
RNS Number : 9828A
North River Resources Plc
10 April 2012
North River Resources plc / Ticker: NRRP / Index: AIM / Sector: Mining
10 April 2012
North River Resources plc ('North River')
Monte Muande Update
North River Resources plc, the AIM listed resource company focussed on Southern Africa, notes an update from its Joint Venture partner Baobab Resources plc ('Baobab' or 'the Company') in relation to North River's Monte Muande licences which cover 338km(2) in the Tete province of Mozambique ('the Project') which are prospective for magnetite, phosphorus, uranium and gold.
North River Managing Director David Steinepreis said, "These encouraging initial drill results from the Monte Muande project continue to underpin the prospectivity of the asset and give further confidence in the current 200Mt to 250Mt Exploration Target. In particular, the indication of premium quality concentrate grades of 69% Fe at a mass recovery of 26% and the potential to also produce a complementary high grade rock phosphate concentrate highlights, in the management's view, the potential value of the project."
Baobab Resources Announcement:
BAOBAB SECURES 60% PROJECT INTEREST IN MONTE MUANDE
Baobab Resources Plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. On 15 November 2010 the Company announced the signing of a Joint Venture with North River Resources plc ('North River') in relation to North River's Monte Muande magnetite/phosphate, base and precious metal project (the 'Project') in the Tete province of Mozambique. The Company is pleased to present an update on work completed.
HIGHLIGHTS
-- Baobab has completed Stage 1 of the Joint Venture, earning the Company a 60% interest in the Project.
-- The 10 hole diamond drilling programme (c.2,000m) completed during 2011 intersected broad packages of magnetite and phosphate mineralisation. Analytical results from nine holes have been returned.
-- Significant drill results from magnetite rich intersections report premium quality concentrate grades of 69% Fe at a mass recovery of 26% (weighted average).
-- The magnetite concentrates are generally very low in deleterious elements with additional test work underway to further improve characteristics.
-- Phosphate mineralisation is ubiquitous with bench-scale test work required to determine quality and yield of a potential concentrate product.
-- Head grades are in line with Coffey Mining's shallow depth 200Mt to 250Mt exploration target announced in March 2011.
-- Sizing and analysis of trench samples is on-going.
Commenting today, Ben James, Baobab's Managing Director, said: "it is with great pleasure that we are able to present the results of the initial drilling campaign on this exciting prospect. 69% Fe is an exceptional grade and, together with the possibility of producing a complementary high grade rock phosphate concentrate, immediately demonstrates the value of this Joint Venture in the Company's portfolio."
MONTE MUANDE DIAMOND DRILLING & RESULTS
During the latter half of 2011, Baobab completed a c.2,000m diamond drilling at Monte Muande (collar details presented below). The programme comprised 10 angled drill holes sited along a staggered traverse transecting the central portion of the deposit. Drilling intersected broad zones of shallowly dipping magnetite (an iron (Fe) mineral) and apatite (a phosphate (P2O5) mineral) mineralisation*. Please note that drill holes have not been drilled in sequence, consequently there are gaps in the hole numbering.
Analytical results from nine drill holes have been returned. Due to the disseminated nature of the apatite mineralisation, the entire length of each drill hole was sampled and analysed. The average head grade of all sampled material reported 10% Fe and 3% P2O5.
Significant intercepts of the magnetite rich zones are tabulated below. The average head grade of all Muande significant intercepts is 21% Fe with the Davis Tube Recovery (DTR) magnetic concentrate grades reporting a weighted average of 69% Fe at a mass recovery of 26% (representing a total iron yield of 87%). Deleterious elements are generally very low in the DTR concentrate with the exception of sulphur (S) and titanium (TiO2); additional test work is currently underway to determine the best magnetic strength conditions to optimise the concentrate quality.
The magnetite intercepts below generally reported an enrichment of phosphate compared to back ground values with an average head grade of 4% P2O5. The Phosphate was further upgraded to a calculated weighted average of 5.5% (ranging up to 8.8%) in the non-magnetic reject component of the DTR process. A bench-scale apatite recovery test work programme is being prepared to determine the potential quality and recovery rates of a phosphate rock concentrate.
* To view a location plan and cross section, please download a copy of this announcement from the Company's website at www.baobabresources.com/investor/aim-announcements.
Davis Tube Recovery (DTR) Product
-------------------------------------------------------
HOLEID Depth Depth Fe P2O5 Mass Fe Al2O3 MnO P2O5 S SiO2 TiO2 V2O5 P2O5
From To Length Head Head Recovery Conc Conc Conc Conc Conc Conc Conc Conc Reject
(m) (m) (m) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0001 131 135.5 4.5 28.2 3.4 30.9 68.9 0.2 0.01 0.08 0.02 0.19 1.44 0.42 4.9
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0001 143.5 154 10.5 16.8 2.3 16.7 70.4 0.4 0.02 0.02 0.02 0.14 0.98 0.51 2.8
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0003 28.5 34.5 6 18.2 5.7 23.4 68.4 0.8 0.80 0.15 1.01 0.14 1.01 0.40 7.3
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0003 130.5 137 6.5 19.5 2.2 23.9 71.6 0.4 0.06 0.04 0.02 0.26 1.03 0.49 2.9
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0003 147.5 151.5 4 18.0 2.0 21.9 70.7 0.4 0.18 0.05 0.03 0.10 0.81 0.47 2.6
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0003 153.5 160 6.5 13.8 3.1 18.2 69.9 0.4 0.27 0.07 0.07 0.16 0.72 0.43 3.8
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0004 82 103 21 16.3 3.5 19.6 69.7 0.7 0.04 0.07 0.19 0.22 0.71 0.28 4.3
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0004 147 153 6 20.3 2.4 25.3 70.0 0.5 0.01 0.02 0.23 0.19 0.71 0.40 3.1
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0004 188 200 12 19.6 2.4 22.3 71.0 0.1 0.01 0.03 0.02 0.10 0.55 0.37 3.1
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0006 19.5 53 33.5 18.2 5.0 22.6 67.0 1.0 0.09 0.11 0.73 0.30 1.14 0.44 6.5
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0011 58 70 12 15.5 4.8 19.4 69.6 0.7 0.06 0.02 0.32 0.29 0.77 0.21 6.0
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0011 142 150 8 15.4 4.7 18.1 69.5 0.8 0.04 0.02 0.20 0.31 0.80 0.40 5.7
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0012 16.5 28.5 12 16.7 4.1 17.0 69.0 0.7 0.02 0.07 0.03 0.97 0.58 0.27 5.0
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0012 50.5 76.5 26 20.3 4.0 24.7 68.8 0.8 0.04 0.06 0.31 0.24 0.85 0.25 5.3
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0012 105.5 117 11.5 14.5 2.8 16.3 69.7 0.8 0.01 0.04 0.41 0.16 0.59 0.26 3.3
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0012 149.5 204.5 55 19.3 4.7 23.3 68.5 0.9 0.05 0.06 0.52 0.25 0.75 0.30 6.1
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0013 24 30 6 19.5 5.3 24.5 70.9 0.2 0.03 0.05 0.04 0.18 0.30 0.25 7.0
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0013 42 72 30 33.3 4.7 46.8 68.3 0.7 0.07 0.10 1.28 0.24 0.78 0.23 8.8
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0013 84 92 8 18.6 6.2 23.1 69.2 0.7 0.07 0.06 0.28 0.16 0.95 0.27 8.0
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0013 103.5 128 24.5 32.8 4.7 45.3 68.0 0.6 0.09 0.10 2.20 0.24 0.69 0.20 8.4
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0013 152 157 5 21.7 5.6 28.4 67.7 0.8 0.08 0.10 1.87 0.18 1.28 0.39 7.7
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0013 178.5 192 13.5 22.3 5.6 26.7 67.5 1.0 0.10 0.10 0.64 0.26 1.51 0.33 7.6
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0014 91 99 8 17.2 3.4 20.3 69.7 0.7 0.03 0.03 0.05 0.35 0.62 0.35 4.3
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0014 121 134.5 13.5 21.1 3.3 24.4 67.5 1.2 0.06 0.04 0.52 0.44 1.41 0.34 4.4
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0014 150.5 168 17.5 14.7 2.8 15.5 68.3 1.1 0.04 0.04 0.44 0.27 1.13 0.30 3.3
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0014 171.5 187.5 16.0 14.0 3.5 15.6 68.3 1.1 0.05 0.05 0.84 0.28 1.23 0.30 4.2
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
MUAD0022 184 212.3 28.3 25.7 4.4 36.3 68.4 0.5 0.04 0.08 1.90 0.25 0.66 0.27 6.9
------ ------ ------- ----- ----- --------- ----- ------ ----- ----- ----- ----- ----- ----- -------
HOLEID TOTAL DEPTH EAST NORTH AZIMUTH DIP
(m) (m) (m) (Deg) (Deg)
------------ ------- -------- -------- ------
MUADH0001 209.67 553102 8235865 270 -60
------------ ------- -------- -------- ------
MUADH0003 200.76 553304 8235831 270 -60
------------ ------- -------- -------- ------
MUADH0004 203.95 553407 8235829 270 -60
------------ ------- -------- -------- ------
MUADH0005 200.70 553516 8235829 270 -60
------------ ------- -------- -------- ------
MUADH0006 167.97 553418 8236028 270 -60
------------ ------- -------- -------- ------
MUADH0011 200.68 553805 8236257 270 -60
------------ ------- -------- -------- ------
MUADH0012 209.84 553906 8236241 270 -60
------------ ------- -------- -------- ------
MUADH0013 206.90 554006 8236182 270 -60
------------ ------- -------- -------- ------
MUADH0014 204.00 554105 8236204 270 -60
------------ ------- -------- -------- ------
MUADH0022 212.30 554372 8236070 270 -60
------------ ------- -------- -------- ------
Coordinate system WGS84 UTM zone 36S. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 5m) and Davis Tube Recovery (DTR) analysis (conducted at a 38m fraction and 3000G). Head and magnetic concentrate sub-samples were analysed by X-ray Fluorescence Spectrometry (XRF). All values are calculated as weighted averages over the reported interval. Interval lengths are measured down-hole and should not be interpreted as true width.
MONTE MUANDE TRENCH SAMPLING
A total of 76 vertical trench samples have been collected from various locations across the Monte Muande deposit. The sampling programme was designed to test the eluvial horizon (in situ remnant soil and weathered bedrock) overlying the deposit which may represent a potential source direct shipping ore (DSO) requiring little or no beneficiation. Sizing and analysis is currently underway.
MONTE MUANDE PROJECT OVERVIEW
The Monte Muande magnetite/phosphate deposit is located 25km to the northwest of the provincial capital of Tete. The international highway to Zambia passes within 3km of the project. The deposit is hosted in a carbonatite and was explored during the 1980s by the Geological Institute of Belgrade (GIB). GIB completed two phases of vertical diamond drilling between 1983 and 1985 totalling 5,570m, 2,960m of which falls within the Joint Venture area. The institute also completed more than 10km of trenching and bench-scale metallurgical test work.
Using the GIB data sets in conjunction with more recent soil geochemistry and aeromagnetic surveys completed by Omegacorp, consultants Coffey Mining Pty Ltd calculated an Exploration Target of 200Mt to 250Mt to an average depth of c.40m below surface (as tabled below). Coffey also carried out a high level review of the GIB metallurgical data which indicated that a magnetite concentrate containing 67% Fe could be generated via a process of coarse grinding and magnetic separation, followed by regrinding and a flotation circuit to recover a phosphate rock concentrate containing 36% P2O5. Total magnetite and apatite recoveries of 92% and 70% respectively were recorded. Please refer to RNS announcement dated 21 March 2011 for additional details.
Mt Muande Magnetite and Phosphate Project
Indicative Tonnages and Grades(1)
-------------------------------------------------------------------------------------------------
Tonnes
Range (Mt) Grade Ranges
------------------------------------------------- -------------- ------------------------------
Area Material Density Lower Upper P(2) O(5)
Type (t/m3) Fe% %
------------- -------- ------ ------ -------------- --------------
Lower Upper Lower Upper
------------- -------- ------ ------ ------ ------ ------ ------
Mt Muande Drilled
/ Trenched Zone Eluvial 3.5 3 5 45 55 3 7
------------- -------- ------ ------ ------ ------ ------ ------
Lower Grade 2.7 90 110 4 10 2 7
-------------------------------------- -------- ------ ------ ------ ------ ------ ------
Higher
Grade 3.0 30 35 20 25 2 7
-------------------------------------- -------- ------ ------ ------ ------ ------ ------
Marble
Southwest Extension(1) Hosted 80 100 - - - -
------------- -------- ------ ------ ------ ------ ------ ------
(1) Without drillhole sampling data available, there is a higher degree of risk allotted to the indicative tonnages in the southwest extension
The information in this report relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the term(s), Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian 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.
CONTACT DETAILS
Baobab Resources PLC
Ben James: Managing Director Tel: +61 8 9430 7151
Jeremy Dowler: Chairman Tel: +44 1372 450529
Grant Thornton Corporate Finance
Gerry Beaney / David Hignell Tel: +44 20 7383 5100
Shore Capital
Jerry Keen / Toby Gibbs Tel: +44 20 7468 7964
Fortbridge Consulting
Matt Beale Tel: +44 7966 389 196
NOTE TO EDITORS
JOINT VENTURE DETAILS
On 15 November 2010 the Company announced the signing of a Joint Venture (the 'Joint Venture') with North River Resources plc ('North River') in relation to North River's Muande project (the 'Muande Project') in the Tete province of Mozambique. The Muande Project comprises two exploration licences covering an area of 338km(2) located approximately 25km northwest of the provincial capital of Tete and contiguous with Baobab's Tete project.
North River Resources plc is an AIM listed multi commodity resource development company, focussed on southern Africa. Its current portfolio includes significant gold, base metal and uranium assets in Namibia and uranium, gold and copper assets in Mozambique. North River has an active development plan with the aim of generating production in the near term. North River is approximately 45% owned by AIM listed Kalahari Minerals plc.
Baobab Resources plc is actively developing iron / vanadium / titanium resources at its Tete Project in Mozambique. With a view to consolidating its strategic position in the Tete area, the Company approached North River with the objective of entering into an unincorporated Joint Venture relationship for the purpose of undertaking exploration activities at the Muande Project and, subject to exploration success, developing mining operations.
A legally binding Heads of Agreement outlines a three stage investment to earn an increasing participatory interest in the Project. North River has the option to participate pro-rata at both Stage 2 and 3 to maintain their 40% interest in the Project.
-- Stage 1 - Baobab commits to funding a First Work Programme at a cost of not less that US$625,000 over a period of not less than 12 months. The work programme will include 2,000m of diamond drilling. Baobab's participatory interest in the Project upon the completion of Stage 1 will be 60%.
-- Stage 2 - Subject to having completed the First Work Programme satisfactorily Baobab shall have the exclusive right to undertake a Pre-Feasibility Study over a period of not less than 12 months. Against Baobab having completed the Pre-Feasibility Study, its participatory interest in the Project shall increase to 75% (if North River elects not to participate).
-- Stage 3 - Upon completion of the Pre-Feasibility Study, Baobab will have the option to increase their participatory interest by an additional 15% (to 90% if North River elects not to participate) by undertaking and funding a Definitive Feasibility Study over a period of not less than 18 months.
**ENDS**
For further information please visit www.northriverresources.com or contact:
David Steinepreis North River Resources Tel: +44 (0) 79 1340
Plc 2727
Luke Bryan North River Resources Tel: +44 (0) 20 7930
Plc 6966
Stuart Faulkner Strand Hanson Limited Tel: +44 (0) 20 7409
3494
Angela Peace Strand Hanson Limited Tel: +44 (0) 20 7409
3494
David Altberg Strand Hanson Limited Tel: +44 (0) 20 7409
3494
Guy Wilkes Ocean Equities Limited Tel: +44 (0) 20 7784
4370
Ewan Leggat Fairfax I.S. PLC Tel: +44 (0) 20 7460
4389
Katy Birkin Fairfax I.S. PLC Tel: +44 (0) 20 7598
4073
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
North River Resources plc
North River Resources plc is an AIM listed resource exploration and development company. Its current portfolio includes gold, base metal and uranium assets in Namibia; uranium, and base and precious metal interests in Mozambique. North River's strategy is to identify, acquire and develop a portfolio of resource opportunities in sub-Saharan Africa at various stages of development in order to create value for its shareholders. The Company has a highly experienced board and management of industry and corporate professionals, led by David Steinepreis and Luke Bryan.
This information is provided by RNS
The company news service from the London Stock Exchange
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