Shares in AIM quoted iron ore firm Baobab Resources shot up 10% as the group unveiled more positive drill results from the Ruoni North prospect on the Tete project.

Ruoni North is part of the Tengue-Ruoni area of the Massamba group trend which is the most advanced part of Baobab’s large Tete project in Mozambique.

Baobab revealed significant drill intercepts with lengths up to 135 metres with average head grades of 37% iron and DTR concentrate grades coming in at 59% iron, 0.8% vanadium and 12% titanium at a mass recovery of 48%.

Mr Ben James managing director said "The continued exploration success in the Tenge/Ruoni area endorses Management's view that this will become the principal hub of the Massamba Group as the project moves closer to production.”

He said “The Company looks forward to releasing the Ruoni North and Chitongue resource statements shortly followed by Ruoni South and the outcomes of the Scoping Study by November end.

He added that “First results from Tenge are expected in early December where drilling is already outlining substantial packages of mineralisation"

Baobab also confirmed that it is at an advanced stage of compiling the scoping study, and preliminary findings are expected to become available during the latter half of November.

(Sourced from www.proactiveinvestors.co.uk)