Baobab Resources Plc has announced an update of activities at the Massamba Group iron vanadium titanium project. IFC hold a 15% participatory interest in the project with Baobab owning the remaining 85%.
A recent scoping level viability analysis of the project assessed a vertically integrated mining, beneficiation and pig iron smelting operation and reported before tax net present value at a 10% discount and internal rate of return figures of USD 1.4 billion and 34% respectively (as announced in the RNS dated November 29th 2011).
Highlights
Resource drilling has defined broad packages of mineralization at Tenge. Analytical results from the first 3 drill holes have been returned with a further 23 drill holes currently undergoing analysis
Significant drill intercepts include 115m at a head grade of 36% Fe and a DTR concentrate grade of 63% Fe, 0.9% V2O5 and 6.6% TiO2 at a mass recovery of 37% from 19.5 meters in TGDH0002A
Coffey Mining is on schedule to complete the Tenge resource estimate by March 2012 which has the potential to add substantially to the current 324 million tonnes global inventory
Pre Feasibility Study management team finalized; contracts signed with international consulting groups Coffey Mining and SNC Lavalin as well as respected industry specialist Dr John Clout
Mr Ben James MD of Baobab said that "The first round of drill results from Tenge are encouraging and show a strong correlation with the grade characteristics of the Ruoni North and Ruoni South resource blocks. The Tenge resource, due out in March, is expected to push the global resource base well beyond Baobab's targeted 300Mt which will allow scope for ramping up production. The Company has also drawn together an excellent team of industry specialists to complete the PFS in good order and looks forward to regularly updating investors on progress."
Tenge Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge Ruoni has intersected a heavily mineralized package varying in thickness from 60 meters to 150 meters. Mineralization has been synformally folded with the fold hinge plunging gently to the west northwest. Exploration campaigns in the prospect area have been divided into three resource blocks:
