Baobab Resources identifies distinct ore domain at Tete’s South Zone

Baobab Resources’ (LON:BAO) ongoing step-out drilling at the South Zone of the Tete project has intersected substantial widths of titanium and iron bearing rock (magnetite-ilmenite) in seven of the eight RC drill holes completed to date. 

The company also released results from the first 3 diamond drill holes, which encountered multiple intercepts with significant mineralisation - up to 61% iron (Fe), 0.63% vanadium and mass recovery reaching 34.7%.

Ben James, Baobab MD, said the results characterise a distinct, higher mass recovery, ore domain to that modelled in the Chitongue Grande resource - the Tete project’s most advanced prospect with a 47.7 million tonne inferred resource.

At the Tete project’s South Zone, Baobab has been conducting a phased exploration programme, which began with 6 diamond drill holes earlier this year. The company is currently following up the diamond drill holes with a reverse circulation (RC) drilling programme.

The diamond drilling results from the South Zone show that each of the three holes encountered multiple intercepts with significant mineralisation.

Drill hole ‘TDH0019’ cut five significant intercepts for a total of 98.5 metres, including 65.5 metres with concentrate grades of 59.48% iron (Fe), 0.61% vanadium oxide (V2O5). The ‘TDH0019’ lab results also showed 34.7% mass recovery from 46m.

Baobab encountered seven significant intercepts in ‘TDH0045’, totalling 192 metres and including: 51 metres with concentrate grades of 60.5% iron (Fe), and 0.63% vanadium oxide (V2O5). ‘TDH0045’ had 33.0% mass recovery from 77.5 metres.

In ‘TDH0047’ there were three significant intercepts for a total of 87.5 metres, including 43.5 metres with concentrate grades of 58.9% iron (Fe) and 0.59% vanadium oxide (V2O5). This hole had 31.3% mass recovery from 95 metres.

In light of the results Baobab has commissioned a detailed metallurgical study to determine how to optimise the mineral processing of the domains.

“We look forward to working with Coffey Mining to construct mineral processing flow sheets that will not only optimise the potential of these domains, but also take into consideration the project's unique and strategic access to infrastructure and complementary resources."

The Tete project covers 632km2 in Mozambique. The project encompasses two areas of magnetite-ilmenite mineralisation, known as the Massamba Group trend in the North and the Singore area to the south.

The infrastructure in the surrounding area is a key feature for the Tete project. Baobab highlights that the project is ‘strategically located’, due to its proximity to the Zambezi river and two neighbouring ‘mega-coal’ operations (run by Vale (NYSE:VALE) and Riversdale (ASX:RIV).

Baobab is primarily focusing on the Massamba Group, which is made up of five distinct prospects along a 8km trend. The five prospects are the Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone.

At the South Zone a total of 35 RC drill holes have been planned, for 7,000m. The first eight holes have totalled 869m. Once complete, Baobab will combine both the RC and the diamond drilling results to estimate a global resource for the South Zone.

Baobab said it expects to receive results from the remaining three diamond drill holes and the first five RC drill holes in early October.

The central portion of the Massamba Group is known as the Chimbala prospect. Along with the South Zone, Chimbala has been one of the main priorities for the 2010 drilling programme. Earlier this year, Baobab completed a 25-hole campaign.

In July and August, the company reported the results from Chimbala.

The diamond drilling tested magnetic targets over an area of 3km2, the company said it intersected significant widths of magnetite-ilmenite mineralisation, with grades reaching up to 65.9% iron (Fe) and 0.72% vanadium.