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Baobab Resources plc is a Mozambican-focused explorer with a large landholding in the central north of the country. The company's flagship project is the Tete iron ore deposit.
Baobab's James says Tete South Zone "delivering beyond our expectations"
Baobab Resources (LON:BAO) boss Ben James said this morning the South Zone of its Tete project in Mozambique is “delivering beyond our expectations”.
His comments were made following the publication of results 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.
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.
“The airborne geophysical contractors have commenced a high resolution survey of the Tenge/Ruoni area that should be wrapped up early next week.
“The Monte Muande Exploration Target is also on track for an announcement in the coming two to three weeks."
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.
All areas drilled to date have delineated substantially wider zones of mineralisation than anticipated.
The Tete Project covers an area of 632 square kilometres and is located immediately north of the provincial capital of Tete.
It shares licence boundaries with Vale and Riversdale's mega coal projects.
The project is strategically located to access to 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 magnetite-ilmenite mineralisation. They are the Singore area to the south and the Massamba Group trend in the north.
The 8 kilometre long Massamba Group trend is composed of a series of five prospects - Chitongue Grande, Pequeno, Caangua, Chimbala and the South Zone.
