Baobab Resources has boosted the global inventory at the Massamba Group of its Tete iron/vanadium/titanium project to more than 160 million tonnes. A new inferred resource of 113 million tonnes at South Zone is the major contributor to the new estimate.
The resource was calculated by international consultancy Coffey Mining in accordance with the JORC code. Reported head grades are 28% iron, 0.2% vanadium and 10% titanium with an indicative average magnetite concentrate grade of 61% iron, 0.7% vanadium and 7.7% titanium at a mass recovery of 23%.
The resource remains open along strike and at depth. Zones of intersected mineralization remain unclassified due to drill density and will be the focus of 2012 drilling campaigns.
Baobab has completed drilling completed at Chitongue Grande Extensions with a resource estimation due to commence shortly. Drilling is also nearing completion at Ruoni North and South with first analytical results due out in coming weeks and resource estimates scheduled for October.
The company has prepared sites and erected a camp at Tenge in preparation for resource drilling, which was due to start in early September.
Baobab’s managing director Ben James says, “This excellent outcome from the South Zone drilling campaign is above expectation and reinforces our belief in the prospectivity of the whole district. 160 million tonnes is the tipping point to our milestone 300 million tonnes.
“With the resource drilling programs at Chitongue Grande finalized, and all but complete at both Ruoni North and South, we remain confident of delivering on our stated objective for 2011. In addition to these, Tenge also has the potential to add substantial upside - an indication of how much should become apparent before the year end.”
The Tete Project, covering an area of 632sqkm, is immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Rio Tinto’s mega coal projects. The project is strategically located to access abundant, low tariff hydro-electric power from existing and developing schemes on the Zambezi River. The ports of Beira and Nacala are being refurbished, as are the rail corridors through to Tete.
The project contains two areas of titano-magnetite/ilmenite mineralization - the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km-long trend and the 3.5km-long, acruate Tenge/Ruoni prospect to the east.
Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.
The company began exploration initiatives in mid-2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective.
Work completed during 2009 culminated in the estimation of a 47.7 million tonne maiden inferred resource over a 500 metre portion of the Chitongue Grande prospect and a 400 million to 700 million tonne exploration target over the broader Massamba Group area.