Baobab Resources’ (LON:BAO) Tete project is looking increasingly exciting as positive news-flow continues from ongoing drilling, Fairfax analyst John Meyer said.
This morning the company published the latest set of drilling results from Tete’s South Zone.
The results come from a second three-hole drilling cross-section in block one, the southernmost portion of the south zone.
The first drill hole had two significant intercepts totaling 28 metres, including 15 metres grading 62.2 per cent iron and 0.64 per cent vanadium oxide.
The second revealed a 90 metre section grading 59.4 per cent iron and 0.6 per cent vanadium oxide, while the third hole had two significant intercepts over 42 metres grading 56.7 per cent to 60 per cent iron.
“The successful results of this exploration programme at the South Zone is good news,” Meyer said.
He adds: “The project has many benefits that other iron ore targets do not, particularly on the logistical side with cheap power nearby and the activities of other miners that will rapidly improve the logistical infrastructure in the region that will enhance the value of Baobab’s projects.”
The results bear out the company’s decision to begin a step-out programme on the South Zone at Tete.
It is systematically assessing a sequence of seven mineralised zones (blocks one to seven) over a strike length of some 2 kilometres. A total of 50 reverse circulation drill holes have been planned for a combined 7,000 metres.
Drilling began last August and to date thirty three holes have been completed for an aggregate total of approximately 4,500 metres.
Managing director James said: “Once again South Zone is delivering beyond our expectations.
“Drilling has delineated broad, coherent packages of mineralisation that respond well under our routine Davis Tube Recovery analysis to generate a c.60% Fe concentrate at good rates of mass recovery. The 2011 drilling programme is gaining momentum and we expect to start seeing the next round of analytical results coming through shortly.”