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  1. #41
    Super Moderator rajaster's Avatar
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    Default Re: LON:BAO Baobab Resources

    i was in a little too early at 22.4.. expected higher low than previous low.. should have placed stop loss at 22p.. but willing to wait this out.. 25p+ sell.. reload.. chart has been played since 54p.. could have made a forune here trading this but instead lost a few k of profits..
    Bang your head on the table when times are hard.. it makes you forget the pain.. Or does it??

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    Default Re: LON:BAO Baobab Resources


    Trust your own instinct. Your mistakes might as well be your own, instead of someone else's.

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    Default Re: LON:BAO Baobab Resources

    MUANDE JV: IRON/PHOSPHATE & COAL EXPLORATION UPDATE

    19th SEPTEMBER 2011

    Baobab Resources plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique. The Company announced on 15 November 2010 the signing of a Joint Venture (the 'Joint Venture') with North River Resources plc ('North River') in relation to North River's Muande project (the 'Project') in the Tete province of Mozambique. The Muande project comprises two exploration licences covering an area of 338km² located approximately 25km northwest of the provincial capital of Tete and contiguous with Baobab's Tete project.
    The principal areas of interest are the Monte Muande magnetite/phosphate deposit and Rio Mufa coal prospect. The Company is pleased to present an update on work completed.

    Summary:
    • A programme of open-hole scout drilling at the Rio Mufa coal prospect has commenced. The prospect is underlain by 12km2 of highly prospective Lower Karoo lithologies (confirmed during recent field investigations) and is flanked to the south and west by Rio Tinto tenure.

    • Diamond drilling at the Monte Muande 200Mt to 250Mt magnetite/phosphate Exploration Target has been completed for an aggregate total of c.2,000m. Drilling has intersected broad zones of shallowly dipping mineralisation with first round analytical results due during November.

    • Trench sampling to assess potential Monte Muande DSO (Direct Shipping Ore) eluvial Exploration Target of 3Mt to 5Mt has been completed with analysis currently underway.

    Mr Ben James, Baobab's Managing Director, said: "Baobab is pleased with the rapid progress made at the Monte Muande magnetite/phosphate deposit and looks forward to presenting the first round of analytical results when they become available.
    "Rio Mufa represents a very real and exciting opportunity for Baobab to establish a firm footing in the flourishing Mozambique coal sector. The Company believes that the development of coal assets will add substantially to its evolving iron and steel aspirations."

    Monte Muande Magnetite/Phosphate Deposit
    The Monte Muande magnetite/phosphate deposit is located 25km to the northwest of the provincial capital of Tete. The international highway to Zambia passes within 3km of the project. The deposit is hosted in a carbonatite and was explored during the 1980s by the Geological Institute of Belgrade (GIB). GIB completed two phases of vertical diamond drilling between 1983 and 1985 totalling 5,570m, 2,960m of which falls within the Joint Venture area. The institute also completed more than 10km of trenching.
    More recently, Omega Corp (and latterly Mavuzi Resources) completed detailed exploration programmes investigating the uranium, gold, copper and coal potential of the area. During 2006-2007, Omegacorp completed a detailed soil geochemical survey over an area of 19 square kilometres extending from the Monte Muande deposit in the northeast to the southern limit of the 1054L licence boundary, 9km to the southwest. The sampling grid overlies a robust, linear magnetic trend marking the margin of the Chacocoma Granite.
    Contouring of the iron (Fe) and phosphorus (P) soil analyses has delineated a corridor of >15% Fe and >1% P anomalism extending from the GIB work area 4km to the southwest. The geochemistry also outlines a discrete 2,500m x 400m copper (Cu) in soil anomaly immediately west of the southwestern limit of the Fe/P corridor, overlying a parallel magnetic trend (Figures 3, 4 and 5*). Both sets of anomalies remain undrilled.
    The soil geochemistry also identified the Boa Viseau gold anomaly, located centrally within the survey area. Boa Viseau was subsequently diamond drilled by Omegacorp in late 2007, returning a best intercept of 6.40m @ 2.01g/t Au from 46.10m (0.5g/t Au cut-off).
    Upon entering into a Joint Venture, Baobab compiled all drill hole and trench data from the Geological Institute of Belgrade 1983 - 1985 exploration campaign into a digital format. Internationally respected consultancy, Coffey Mining Pty Ltd ('Coffey'), was then commissioned to assess the exploration target potential of the Monte Muande area for iron and phosphate mineralisation. Coffey used drill hole and trench data sets as well as more recent soil geochemistry and aeromagnetic surveys completed by Omegacorp in the assessment and carried out the following:
    • Compiled an indicator kriging (IK) model to confirm the general trend of mineralisation.
    • Compiled 3d wireframes of the various material types.
    • Carried out an inverse distance calculation using the available grades within the mineralised wireframes.
    • Defined the possible surface area of the similar host rock to the southwest of Mt Muande and assigned target tonnages proportionally (no grades have been assigned to this material).
    Indicative tonnage and grade ranges are presented in Table 1. Lower target tonnages have been derived from extrapolations of drillhole / trench mineralisation intersections to an average depth of 42m from below surface level (the absolute range is down to 135m). Upper target tonnages have assumed an additional 20% of mineralised material will be identified with addition drilling. There is no reason to believe that mineralisation will not be encountered below the modelled depths.

    Table 1
    Mt Muande Magnetite and Phosphate Project
    Indicative Tonnages and Grades1










    Tonnes Range (Mt)
    Grade Ranges
    Area
    Material Type
    Density (t/m3)
    Lower
    Upper
    Fe%
    P2O5%
    Lower
    Upper
    Lower
    Upper
    Mt Muande Drilled / Trenched Zone
    Eluvial
    3.5
    3
    5
    45
    55
    3
    7
    Lower Grade
    2.7
    90
    110
    4
    10
    2
    7
    Higher Grade
    3.0
    30
    35
    20
    25
    2
    7
    Southwest Extension1
    Marble Hosted

    80
    100
    -
    -
    -
    -
    1 Without drillhole sampling data available, there is a higher degree of risk allotted to the indicative tonnages in the southwest extension
    The information in this report relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the term(s), Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
    Coffey also carried out a high level review of the metallurgical data from the Muande project. Detailed historical reports are not currently available, however a summary of works completed indicated that a magnetite concentrate containing 67% Fe could be generated via a process of coarse grinding (to 0.3mm) and magnetic separation, followed by regrinding and a flotation circuit to recover an apatite (phosphate rock) concentrate containing 36% P2O5. Total magnetite and apatite recoveries of 92% and 70% respectively were recorded.
    No metallurgical test work appears to have been completed on the eluvial mineralised material. Coffey assumes that this material will be able to be upgraded via simple gravity concentration processes such as cobbing and spirals. They conclude that the resulting process could produce a potential direct shipping ore (DSO) product. Baobab has excavated a series of trenches to enable representative sampling of the eluvial horizons. Approximately 50 samples were collected and are currently at the ALS Chemex laboratories in Perth, Western Australia for analysis.
    Baobab has recently completed a c.2,000m diamond drilling at Monte Muande. The programme comprised 10 angled drill holes sited along a staggered traverse transecting the central portion of the deposit. Drilling has intersected broad zones of shallowly dipping magnetite and apatite mineralisation.

    Sample preparation at 1m and 2m composite intervals is being completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex for further compositing, Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis. The company anticipates that the first round of analytical results may be announced during November.

    Rio Mufa Coal Prospect
    The Rio Mufa prospect includes 12 square kilometres of Lower Karoo lithologies underlying the southwestern corner of 1119L. The same Lower Karoo hosts the c.15Bt of thermal and coking coal resources in the neighbouring Moatize basin. The prospect is located approximately 30km west of Tete and is flanked to the south and west by tenure held by mining major Rio Tinto.
    Baobab commissioned specialist coal consultants, Gondwana Limitada ('Gondwana'), to complete a detailed field review of the Rio Mufa area during July 2011. Investigations confirmed that the prospect is underlain by the basal units of the Lower Karoo sequence, considered to be the most fertile portion of the Maotize basin. A very weathered coal seam of undetermined thickness was mapped in an exposure along the Mufa River, further substantiating the area's prospectivity.
    Gondwana designed a scout programme of 13 open-hole drill holes using a polycrystalline diamond (PCD) drill bit. PCD drilling is a rapid and cost competitive tool that is commonly employed during preliminary coal exploration campaigns prior to more detailed diamond core drilling.
    Drilling commenced on 15 September 2011. A geophysical contractor is on standby to complete in-hole gamma and density surveys immediately after each drill hole is completed. The geophysical data, combined with the geological logging, is expected to provide a good indication as to the width and quality of intersected coal seams.
    Details of North River Joint Venture
    North River Resources plc is an AIM listed multi commodity resource development company, focussed on southern Africa. Its current portfolio includes significant gold, base metal and uranium assets in Namibia and uranium, gold and copper assets in Mozambique. North River has an active development plan with the aim of generating production in the near term. North River is approximately 38% owned by AIM listed Kalahari Minerals plc.
    Baobab Resources plc is actively developing iron / vanadium / titanium resources at its Tete Project in Mozambique. With a view to consolidating its strategic position in the Tete area, the Company approached North River with the objective of entering into an unincorporated Joint Venture relationship for the purpose of undertaking exploration activities at the Muande Project and, subject to exploration success, developing mining operations.
    A legally binding Heads of Agreement outlines a three stage investment to earn an increasing participatory interest in the Project. North River has the option to participate pro-rata at both Stage 2 and 3 to maintain their 40% interest in the Project.
    • Stage 1 - Baobab commits to funding a First Work Programme at a cost of not less that US$625,000 over a period of not more than 12 months. The work programme will include 2,000m of diamond drilling. Baobab's participatory interest in the Project upon the completion of Stage 1 will be 60%.
    • Stage 2 - Subject to having completed the First Work Programme satisfactorily Baobab shall have the exclusive right to undertake a Pre-Feasibility Study over a period of not less than 12 months. Against Baobab having completed the Pre-Feasibility Study, its participatory interest in the Project shall increase to 75% (if North River elects not to participate).
    • Stage 3 - Upon completion of the Pre-Feasibility Study, Baobab will have the option to increase their participatory interest by an additional 15% (to 90% if North River elects not to participate) by undertaking and funding a Definitive Feasibility Study over a period of not less than 18 months.
    Baobab has been nominated as the operator of the Joint Venture, reporting to a management committee represented by both parties to the Joint Venture. A review of historical exploration and data compilation is ongoing and drilling commenced in Q2 2011.

    Baobab Resources PLC: MUANDE JV - EXPLORATION UPDATE | Company Announcements | Moneyam

    Trust your own instinct. Your mistakes might as well be your own, instead of someone else's.

  4. #44
    Super Moderator rajaster's Avatar
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    Default Re: LON:BAO Baobab Resources

    that rns took me 10 mins to read this morning.. alot of juicy details.. loved the addition of coal/copper and potential of gold.. i still think this has the potential to be a takeover target with a setup of a steel mill on the door step with cheap coal/FE/water/elec all favourable .. enough to think sit till equities recover and true value is unlocked... although i suspect like aff/xel there will be a bear raid and price drop again over coming weeks.. and 18p would be nice to add some more.
    Bang your head on the table when times are hard.. it makes you forget the pain.. Or does it??

  5. #45
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    Default Re: LON:BAO Baobab Resources

    RNS Number : 0480P
    Baobab Resources PLC
    28 September 2011

    
    BAOBAB REOURCES PLC

    (AIM:BAO)

    28th SEPTEMBER 2011

    TENGE/RUONI CONTINUES TO DELIVER


    Baobab Resources Plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where a 160Mt resource upgrade was announced on 30 August 2011, the first of three resource statement updates expected before the end of 2011. The Company continues to target a resource base of 300Mt of iron ore by the end of 2011.

    HIGHLIGHTS

    - Further positive results returned from the latest round of Ruoni North analytical data are consistent with those announced previously.

    - Significant drill intercepts, up to 95m in length, report an average head grade of 33% Fe with saleable DTR concentrate grades averaging 59% Fe, 0.8% V2O5 and 12% TiO2 at a mass recovery of 39%.

    - Consultant, Coffey Mining Pty Ltd, has commenced geological modelling of the Chitongue Grande Expansion area and the Ruoni North and Ruoni South blocks in preparation for resource statements scheduled for release in October / November 2011.

    Commenting today, Ben James, Baobab's Managing Director, said: "The latest round of results confirms the robust continuity of mineralisation at the Ruoni North prospect. The Company looks forward to releasing further results from Ruoni North and South in the lead up to their respective resource statements."

    Resource Drilling: Tenge/Ruoni Prospect

    Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is progressing rapidly and has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation 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:

    - Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of 5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.

    - Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north).

    - Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A drilling programme of approximately 3,000m has commenced.

    Consultant, Coffey Mining Pty Ltd, has commenced preliminary data validation and geological modelling of the Ruoni North and Ruoni South blocks in preparation for resource statements scheduled for release in October / November 2011.

    Analytical results for RC holes RNRC0001 to 5 were announced on 7 September 2011. Further results from holes RNRC0007 to RNRC0012, 14 and 17, drilled over three cross sections spaced between 120m and 180m apart at Ruoni North, have been returned. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 6m), Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis.

    Drill hole collar details and significant intercepts are tabulated below. The results are in line with those announced previously and demonstrate an overall improvement in Fe head grades and mass recoveries. The average Fe concentrate grade is lower and V2O5 and TiO2 higher than reported in the other Massamba group resource blocks, but remains within a typical saleable range for titano-magnetite concentrate. Metallurgical test work is on-going to determine the best grind fraction/magnetic strength conditions to optimise the concentrate quality. Baobab will also be conducting studies into blending the various concentrate streams to further enhance the finished product.
    Davis Tube Recovery (DTR) Product
    HOLEID Depth Depth Fe Mass Fe V2O5 TiO2 Al2O3 P S SiO2
    From To Length Head Recovery Conc Conc Conc Conc Conc Conc Conc
    (m) (m) (m) (%) (%) (%) (%) (%) (%) (%) (%) (%)
    RNRC0007 19 53 34 33.0 40.1 58.0 0.83 12.9 3.8 <0.001 0.03 0.72
    RNRC0007 81 113 32 44.9 62.6 58.2 0.76 13.6 2.9 <0.001 0.12 0.33
    RNRC0008 103 114 11 29.9 33.4 60.5 0.90 9.9 3.2 <0.001 0.08 0.85
    RNRC0008 137 151 14 25.2 27.5 58.1 0.81 13.0 3.2 <0.001 0.13 0.77
    RNRC0009 120 156 36 36.7 49.1 57.1 0.79 13.8 3.6 <0.001 0.10 0.97
    RNRC0009 170 192 22 28.3 44.2 56.7 0.76 14.2 3.9 <0.001 0.14 1.20
    RNRC0010 46 102 56 39.2 50.4 58.6 0.79 12.6 3.0 <0.001 0.13 0.51
    RNRC0011 101 153 52 33.8 37.3 59.5 0.89 10.3 3.4 <0.001 0.12 0.87
    RNRC0012 0 76 76 31.6 32.1 60.4 0.91 8.7 3.3 <0.001 0.09 0.63
    RNRC0014 131 226 95 29.1 36.7 57.3 0.76 14.1 3.2 <0.001 0.15 0.77
    RNRC0017 136 200 64 26.6 26.5 60.0 0.93 8.9 3.7 <0.001 0.17 1.63


    HOLEID TOTAL DEPTH EAST NORTH RL AZIMUTH DIP
    (m) (m) (m) (m) (Deg) (Deg)
    RNRC0007 140 582162 8262362 320 58 -60
    RNRC0008 197 582082 8262306 312 58 -60
    RNRC0009 204 581994 8262253 310 58 -60
    RNRC0010 149 582068 8262440 304 35 -60
    RNRC0011 193 582011 8262357 308 35 -60
    RNRC0012 168 581968 8262522 302 35 -60
    RNRC0014 246 581956 8262274 310 35 -60
    RNRC0017 210 581726 8262412 306 35 -60

    Tete Project Overview: located in Africa's emerging mining & industrial hub

    The Tete Project, covering an area of 632km2, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Rio Tinto's mega coal projects. The project is strategically located to access 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 titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.

    Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.

    Tete Exploration Summary: resource base fast approaching targeted 300Mt

    The Company commenced exploration initiatives in mid 2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective.

    Work completed by the Company during 2009 culminated in the estimation of a 47.7mt maiden Inferred Mineral Resource over a 500m portion of the Chitongue Grande prospect and a 400mt to 700mt Exploration Target over the broader Massamba Group area.

    Independent scoping metallurgical studies and financial modelling completed in 2009 indicate positive project economics in the production of high quality titano-magnetite/vanadium and ilmenite (titanium) concentrate commodities from a resource base of 300Mt.

    A scout drilling programme, designed to assess the Chimbala and South Zone prospects of the Massamba Group trend, has been completed during 2010 for an aggregate total of approximately 7,500m. The purpose of the campaign has been two-fold: to improve confidence in the Company's Exploration Target and to clarify geological domains for continued metallurgical test-work.

    South Zone was prioritised for resource drilling and the Company announced an 113Mt JORC Inferred Mineral Resource on 30 August 2011. The resource remains open at depth and along strike.

    As well as completing the resource drilling at South Zone and Tenge/Ruoni, an expansion resource drilling campaign at Chitongue Grande has been completed with thirty six RC holes drilled for an aggregate total of 6,275m. Down dip and along strike projections of the existing resource have been intersected. All samples have arrived at the ALS laboratory in Australia. Consultant, Coffey Mining Pty Ltd, has commenced preliminary data validation and geological modelling in preparation for a resource update scheduled for release in October / November 2011.
    Reflect upon your present blessings of which every man has many - not on your past misfortunes, of which all men have some.
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  6. #46
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    Default Re: LON:BAO Baobab Resources

    RNS Number : 5892P
    Baobab Resources PLC
    05 October 2011


    RUONI SOUTH DELIVERS HIGH QUALITY CONCENTRATE VALUES
    5th OCTOBER 2011
    Baobab Resources Plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where a 160Mt resource upgrade was announced on 30 August 2011, the first of three resource statement updates expected before the end of 2011. The Company continues to target a resource base of 300Mt of iron ore by the end of 2011.
    HIGHLIGHTS
    • First results from Ruoni South resource drilling have been returned and represent some of the best concentrate grades thus far encountered in the Massamba Group. Of particular interest is the consistent 1% V2O5 concentrate grade.
    • Significant drill intercepts, up to 72m in length, report an average head grade of 30% Fe with DTR concentrate grades reporting a weighted average of 64% Fe, 1% V2O5 and 5% TiO2 at a mass recovery of 26%.
    • Consultant, Coffey Mining Pty Ltd, has commenced geological modelling of the Chitongue Grande Expansion area and the Ruoni North and Ruoni South blocks in preparation for resource statements scheduled for release in October and November 2011.
    Commenting today, Ben James, Baobab's Managing Director, said: "These initial results from Ruoni South are particularly encouraging and further endorse Management's belief that Tenge/Ruoni will become the cornerstone deposit of the Massamba Camp."
    Resource Drilling: Tenge/Ruoni Prospect
    Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is progressing rapidly and has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation 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:
    • Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of 5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.
    • Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north).
    • Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A drilling programme of approximately 3,000m has commenced.
    Consultant, Coffey Mining Pty Ltd, has commenced preliminary data validation and geological modelling of the Ruoni North and Ruoni South blocks in preparation for resource statements scheduled for release in October and November 2011.
    Analytical results for the first 13 Ruoni North RC drill holes were announced on 7 and 28 September 2011. Results for the first three Ruoni South RC holes (RSRC0012, 14 and 19) have been returned. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 6m), Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis.
    Drill hole collar details and significant intercepts are tabulated below. The results represent some of the best concentrate grades thus far encountered in the Massamba Group. Of particular interest is the consistent 1% V2O5 concentrate grade which is 25% higher than results reported from Ruoni North and some 40% higher than indicated concentrate grades from South Zone and Chitongue Grande resource areas.
    Davis Tube Recovery (DTR) Product
    HOLEID Depth Depth Fe Mass Fe V2O5 TiO2 Al2O3 P S SiO2
    From To Length Head Recovery Conc Conc Conc Conc Conc Conc Conc
    (m) (m) (m) (%) (%) (%) (%) (%) (%) (%) (%) (%)
    RSRC0012 162 170 8 26.4 22.7 62.3 1.00 5.1 3.5 <0.001 0.34 1.90
    RSRC0012 179 202 23 26.5 23.9 62.9 1.01 4.9 3.4 <0.001 0.32 1.35
    RSRC0014 113 121 8 32.1 33.1 62.0 1.04 7.9 2.5 <0.001 0.14 0.92
    RSRC0014 129 136 7 30.8 25.0 64.3 1.09 4.6 2.3 <0.001 0.31 1.15
    RSRC0014 141 148 7 30.0 24.6 63.2 1.09 5.2 2.7 <0.001 0.40 1.32
    RSRC0014 160 211 51 29.8 26.8 61.8 0.97 6.7 3.1 <0.001 0.54 1.02
    RSRC0019 132 204 72 32.5 24.7 65.4 1.06 3.8 1.9 <0.001 0.17 0.86

    HOLEID TOTAL DEPTH EAST NORTH RL AZIMUTH DIP
    (m) (m) (m) (m) (Deg) (Deg)
    RSRC0012 250 581452 8261208 296 180 -60
    RSRC0014 248 581599 8261248 294 180 -60
    RSRC0019 207 581201 8261198 313 180 -60

    Tete Project Overview: located in Africa's emerging mining & industrial hub
    The Tete Project, covering an area of 632km2, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Rio Tinto's mega coal projects. The project is strategically located to access 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 titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.
    Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.
    Tete Exploration Summary: resource base fast approaching targeted 300Mt
    The Company commenced exploration initiatives in mid 2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective.
    Work completed by the Company during 2009 culminated in the estimation of a 47.7mt maiden Inferred Mineral Resource over a 500m portion of the Chitongue Grande prospect and a 400mt to 700mt Exploration Target over the broader Massamba Group area.
    Independent scoping metallurgical studies and financial modelling completed in 2009 indicate positive project economics in the production of high quality titano-magnetite/vanadium and ilmenite (titanium) concentrate commodities from a resource base of 300Mt.
    A scout drilling programme, designed to assess the Chimbala and South Zone prospects of the Massamba Group trend, has been completed during 2010 for an aggregate total of approximately 7,500m. The purpose of the campaign has been two-fold: to improve confidence in the Company's Exploration Target and to clarify geological domains for continued metallurgical test-work.
    South Zone was prioritised for resource drilling and the Company announced an 113Mt JORC Inferred Mineral Resource on 30 August 2011. The resource remains open at depth and along strike.
    As well as completing the resource drilling at South Zone and Tenge/Ruoni, an expansion resource drilling campaign at Chitongue Grande has been completed with thirty six RC holes drilled for an aggregate total of 6,275m. Down dip and along strike projections of the existing resource have been intersected. All samples have arrived at the ALS laboratory in Australia. Consultant, Coffey Mining Pty Ltd, has commenced preliminary data validation and geological modelling in preparation for a resource update scheduled for release in October and November 2011.
    Reflect upon your present blessings of which every man has many - not on your past misfortunes, of which all men have some.
    Charles Dickens

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    Default Re: LON:BAO Baobab Resources

    Latest update:

    BAOBAB RESOURCES PLC
    AIM : BAO
    RUONI NORTH CONTINUES TO DELIVER

    24 October 2011

    Baobab Resources Plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where a 160Mt resource upgrade was announced on 30August 2011, the first of three resource statement updates expected before the end of 2011. The Company continues to target a resources base of 300Mt of iron ore by the end of 2011.

    HIGHLIGHTS
    - Further positive results returned from the latest round of Ruoni North analytical data are consistent with those announced previously.

    - Significant drill intercepts, up to 135m in length, report an average head grade of 37% Fe with DTR concentrate grades reporting a weighted average of 59% Fe, 0.8% V2O5 and 12% TiO2 at a mass recovery of 48%.

    - JORC resource estimates for Ruoni North and Chitongue Grande Extensions due out shortly with Ruoni South expected by the end of November.

    - Scoping Study compilation at an advanced stage with preliminary results expected to become available during the latter half of November.

    Commenting today, Ben James, Baobab's 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. 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. First results from Tenge are expected in early December where drilling is already outlining substantial packages of mineralisation"

    Resource Drilling: Tenge/Ruoni Prospect

    Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is progressing rapidly and has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation 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:

    - Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of 5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.
    - Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north).
    - Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A Drilling programme of approximately 3,000m is well underway.
    Consultant, Coffey Mining Pty Ltd, is well advanced with the resource estimate for Ruoni North which the Company expects to announce in the coming weeks. Ruoni South geological modelling is nearing completion and Coffey is now waiting on assay results to complete an estimate (scheduled for the end of November). Both resource statements will be completed in accordance with the Joint Ore Reserves Committee (JORC) guidelines.
    Analytical results for nine Ruoni North RC holes were announced on 7 and 28 September 2011. Further results from holes RNRC0016, 18 to 20 and 29 have been returned. RNRC0016 and 29 are forward and back holes to RNRC0017 and RNRC0003 respectively. RNRC0018, 19A and 20 have been drilled along a single traverse at the south-eastern limit of the prospect. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 6m), Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis.

    Drill hole collar details and significant intercepts are tabulated below. The results are in line with those announced previously and demonstrate an overall improvement in Fe head grades and mass recoveries. The average Fe concentrate grade is lower and V2O5 and TiO2 higher than reported in the other Massamba group resource blocks, but remains within a typical saleable range for titano-magnetite concentrate. Metallurgical test work is on-going to determine the best grind fraction/magnetic strength conditions to optimise the concentrate quality. Baobab will also be conducting studies into blending the various concentrate streams to further enhance the finished product.

    The average head grade of all Ruoni North significant intercepts reported to date is 37% Fe with the DTR concentrate grades reporting a weighted average of 58% Fe, 0.8% V2O5 and 13% TiO2 at a mass recovery of 45%.






    (follow link below for tables)

    Tete Project Overview: located in Africa's emerging mining & industrial hub

    The Tete Project, covering an area of 632km2, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Rio Tinto's mega coal projects. The project is strategically located to access 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 titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.
    Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.
    Tete Exploration Summary: resource base fast approaching targeted 300Mt

    The Company commenced exploration initiatives in mid 2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective.
    Work completed by the Company during 2009 culminated in the estimation of a 47.7mt maiden Inferred Mineral Resource over a 500m portion of the Chitongue Grande prospect and a 400mt to 700mt Exploration Target over the broader Massamba Group area.
    Independent scoping metallurgical studies and financial modelling completed in 2009 indicate positive project economics in the production of high quality titano-magnetite/vanadium and ilmenite (titanium) concentrate commodities from a resource base of 300Mt.
    A scout drilling programme, designed to assess the Chimbala and South zone prospects of the Massamba Group trend, has been completed during 2010 for an aggregate total of approximately 7,500m. The purpose of the campaign has been two-fold: to improve confidence in the Company's Exploration Target and to clarify geological domains for continued metallurgical test-work.
    South Zone was prioritised for resource drilling and the Company announced an 113Mt JORC Inferred Mineral Resource on the 30th August 2011. The resource remains open at depth and along strike.
    As well as completing the resource drilling at South Zone and Tenge/Ruoni, an expansion resource drilling campaign at Chitongue Grande has been completed with thirty six RC holes drilled for an aggregate total of 6,275m. Down dip and along strike projections of the existing resource have been intersected. Consultant, Coffey Mining Pty Ltd, is finalising a JORC resource update which is expected to be announced in conjunction with the Ruoni North resource statement in early November 2011.
    Scoping Study

    Baobab is working alongside Coffey Mining to compile a revised Scoping Study. The study is drawing on the results of the resource calculations, metallurgical test work and a recently completed infrastructure review together with mine scheduling and pit optimisation studies currently underway to build a financial model assessing the economic viability of various process routes. Preliminary study results are expected during the latter half of November.
    The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
    Baobab Resources PLC: RUONI NORTH CONTINUES TO DELIVER | Company Announcements | Moneyam

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    Default Re: LON:BAO Baobab Resources

    Extract from RNS

    - JORC resource estimates for Ruoni North and Chitongue Grande Extensions due out shortly with Ruoni South expected by the end of November.

    up 15% already, can see this gathering momentum to 30p in the build up, 2 JORCS due shortly and before end of November, so 1-2 weeks maybe until the first one?

    If we hit 300mt with these 2 then expect a significant pop with commercial viability confirmed, and not just PI gossip.

    Textbook if it starts following BEM up again, loves a chase this share
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    Default Re: LON:BAO Baobab Resources

    I want to see the economics of the scoping study as well, everything's a go when 300mt is reached so if we surpass that, the economics will be even better!

    Trust your own instinct. Your mistakes might as well be your own, instead of someone else's.

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    Default Re: LON:BAO Baobab Resources

    RNS Number : 9138Q
    Baobab Resources PLC
    27 October 2011

    
    BAOBAB RESOURCES PLC
    FURTHER QUALITY GRADES FROM RUONI SOUTH
    27th October 2011
    Baobab Resources Plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where a 160Mt resource upgrade was announced on 30August 2011, the first of three resource statement updates expected before the end of 2011. The Company continues to target a resources base of 300Mt of iron ore by the end of 2011.
    HIGHLIGHTS
    - Ruoni South drilling has defined broad packages of mineralisation delivering some of the best quality concentrate grades in the Massamba Group, including a consistently high grade of 1% V2O5.
    - Significant drill intercepts include 136m at a head grade of 32% Fe and a DTR concentrate grade of 64% Fe, 1% V2O5 and 5% TiO2 at a mass recovery of 27% from 96m in RSRC0016.
    - JORC resource estimates for Ruoni North and Chitongue Grande Extensions are nearing completion with Ruoni South expected by the end of November.
    - Scoping Study compilation at an advanced stage with preliminary results expected to become available during the latter half of November.
    - Drilling is progressing steadily at Tenge, outlining substantial zones of strong mineralisation. First analytical results are expected during December.
    Commenting today, Ben James, Baobab's Managing Director, said: "the latest round of Ruoni South DTR results underlines the quality and potential scale of the deposit. Baobab will be keeping investors up to date as additional results become available."
    Resource Drilling: Tenge/Ruoni Prospect
    Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is progressing rapidly and has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation 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:
    - Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of 5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.
    - Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north).
    - Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A Drilling programme of 3,000m to 4,000m is well underway with an aggregate total of 2,250m already completed.
    Consultant, Coffey Mining Pty Ltd, is well advanced with the resource estimate for Ruoni North which the Company expects to announce in early November. Ruoni South geological modelling is nearing completion and Coffey is now waiting on assay results to complete an estimate (scheduled for the end of November). Both resource statements will be completed in accordance with the Joint Ore Reserves Committee (JORC) guidelines.
    Analytical results for RC holes RSRC0012, 14 and 19 were announced on 28 September 2011. Further results from holes RSRC0001, 15, 16 and 20, drilled over four cross sections spanning the 650m central portion of Ruoni South, have been returned. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 6m), Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis.
    Drill hole collar details and significant intercepts are tabulated below. The Ruoni South continues to deliver some of the best concentrate grades thus far encountered in the Massamba Group. Of particular interest is the consistent 1% V2O5 concentrate grade which is 25% higher than results reported from Ruoni North and some 40% higher than indicated concentrate grades from South Zone and Chitongue Grande resource areas.
    The average head grade of all Ruoni South significant intercepts reported to date is 30% Fe with the DTR concentrate grades reporting a weighted average of 63% Fe, 1% V2O5 and 6.4% TiO2 at a mass recovery of 27%.
    Davis Tube Recovery (DTR) Product
    HOLEID Depth Depth Fe Mass Fe V2O5 TiO2 Al2O3 P S SiO2
    From To Length Head Recovery Conc Conc Conc Conc Conc Conc Conc
    (m) (m) (m) (%) (%) (%) (%) (%) (%) (%) (%) (%)
    RSRC0001 143 174 31 32.8 26.6 65.0 1.02 3.2 1.8 <0.001 0.26 0.88
    RSRC0001 209 250 41 37.2 36.5 63.4 0.99 6.3 2.7 <0.001 0.26 0.74
    RSRC0015 15 96 81 24.9 25.3 60.3 0.96 8.8 3.6 <0.001 0.24 1.27
    RSRC0016 96 232 136 31.6 27.2 64.1 1.01 4.9 2.4 <0.001 0.24 0.99
    RSRC0020 150 219 69 26.2 25.1 59.9 0.92 9.5 3.5 <0.001 0.22 1.39
    RSRC0020 223 235 12 39.1 51.4 57.7 0.80 13.0 3.7 <0.001 0.10 0.99

    HOLEID TOTAL DEPTH EAST NORTH RL AZIMUTH DIP
    (m) (m) (m) (m) (Deg) (Deg)
    RSRC0001 250 581101 8261200 315 180 -60
    RSRC0015 176 581606 8261155 291 180 -60
    RSRC0016 248 581759 8261251 294 180 -60
    RSRC0020 235 581375 8261236 299 180 -60

    Tete Project Overview: located in Africa's emerging mining & industrial hub
    The Tete Project, covering an area of 632km2, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Rio Tinto's mega coal projects. The project is strategically located to access 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 titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.
    Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.
    Tete Exploration Summary: resource base fast approaching targeted 300Mt
    The Company commenced exploration initiatives in mid 2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective.
    Work completed by the Company during 2009 culminated in the estimation of a 47.7mt maiden Inferred Mineral Resource over a 500m portion of the Chitongue Grande prospect and a 400mt to 700mt Exploration Target over the broader Massamba Group area.
    Independent scoping metallurgical studies and financial modelling completed in 2009 indicate positive project economics in the production of high quality titano-magnetite/vanadium and ilmenite (titanium) concentrate commodities from a resource base of 300Mt.
    A scout drilling programme, designed to assess the Chimbala and South zone prospects of the Massamba Group trend, has been completed during 2010 for an aggregate total of approximately 7,500m. The purpose of the campaign has been two-fold: to improve confidence in the Company's Exploration Target and to clarify geological domains for continued metallurgical test-work.
    South Zone was prioritised for resource drilling and the Company announced an 113Mt JORC Inferred Mineral Resource on the 30th August 2011. The resource remains open at depth and along strike.
    As well as completing the resource drilling at South Zone and Tenge/Ruoni, an expansion resource drilling campaign at Chitongue Grande has been completed with thirty six RC holes drilled for an aggregate total of 6,275m. Down dip and along strike projections of the existing resource have been intersected. Consultant, Coffey Mining Pty Ltd, is finalising a JORC resource update which is expected to be announced in conjunction with the Ruoni North resource statement in early November 2011.
    Scoping Study
    Baobab is working alongside Coffey Mining to compile a revised Scoping Study. The study is drawing on the results of the resource calculations, metallurgical test work and a recently completed infrastructure review together with mine scheduling and pit optimisation studies currently underway to build a financial model assessing the economic viability of various process routes. Preliminary study results are expected during the latter half of November.
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    Default Re: LON:BAO Baobab Resources

    RNS Number : 1277R
    Baobab Resources PLC
    31 October 2011



    BAOBAB RESOURCES PLC
    RESOURCE STATEMENT No. 2:
    BAOBAB EXPANDS MASSAMBA GROUP GLOBAL INVENTORY TO OVER 265Mt
    31st OCTOBER 2011

    Baobab Resources Plc ("Baobab" or the "Company") is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present a resource update at the Massamba Group of its Tete iron / vanadium / titanium project.

    HIGHLIGHTS
    - Massamba Group global resource base expanded to 267Mt (JORC) with the completion of the Ruoni North resource estimate and Chitongue Grande resource update.
    - Ruoni North 93Mt Inferred Resource reports a head grade of 35% Fe with an indicative average concentrate grade of 58% Fe, 0.8% V2O5 and 13% TiO2 at a mass recovery of 47%.
    - Chitongue Grande Inferred Resource increased from 48Mt to 61Mt reporting a head grade of 25% Fe with an indicative average concentrate grade of 64% Fe, 0.7% V2O5 and 5% TiO2 at a mass recovery of 20%.
    - Ruoni South drilling has defined broad packages of mineralisation delivering some of the best quality concentrate grades in the Massamba Group, including a consistently high grade of 1% V2O5. International consultancy, Coffey Mining, is on schedule to deliver a resource estimate by the end of November.
    - The high mass recoveries recorded at the Ruoni North deposit means that it will yield more than double the concentrate per tonne of ore processed than its South Zone or Chitongue Grande counterparts.
    - Scoping Study compilation at an advanced stage with preliminary results expected to become available during the latter half of November.
    - Drilling is progressing steadily at Tenge, outlining substantial zones of strong mineralisation. First analytical results are expected during December.
    Commenting from Mozambique today, Ben James, Baobab's Managing Director, said: "we started 2011 with a 48Mt resource and a 300Mt target. Ten months into the year and the global inventory is now sitting at more than a quarter of a billion tonnes with the high grade Ruoni South resource still to come in and Tenge beginning to flex its muscle. This would not have been accomplished without the unswerving dedication of our technical team in Mozambique.
    "The Scoping Study is progressing at pace and is assessing development routes that will capitalise on the project's unique proximity to abundant coal and water resources and some of the lowest tariff hydro-power in Africa. Importantly these are the critical complementary resources for establishing a fully integrated iron and steel industry."
    Resource Estimates
    Internationally respected consultant, Coffey Mining Limited, has completed resource estimates based on the completed drilling programmes at Ruoni South and Chitongue Grande. Their estimates of Inferred Mineral Resources, including the South Zone estimate announced on 30 August 2011, are summarised below. All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on estimation parameters are presented as Annexure 1.
    In many areas the resource blocks remain open along strike and at depth, requiring extensional drilling programmes in 2012. Some areas of intersected mineralisation remain unclassified due to insufficient drilling density and will also require further drill definition.
    The mineralised horizons contain internal partings of non-mineralised waste material which have not been sampled. Some of this material may not be preferentially mineable and would therefore act as a dilutant. Without sampling the intermediate waste partings, it has not been possible to predict what the expected weight recovery and recovered grades might be. However, based on the Davis Tube Recovery (DTR) results of the completed estimation, the expected average concentrate characteristics for the mineralised material are:
    - Ruoni North: 58% Fe, 0.8% V2O5, 12.9% TiO2, 0.8% SiO2, 3.5% Al2O3, 0.001% P and 0.1% S at a Mass Recovery of 47%.
    - Chitongue Grande: 64% Fe, 0.7% V2O5, 4.8% TiO2, 1.5% SiO2, 2.8% Al2O3, 0.001% P and 0.4% S at a Mass Recovery of 20%.
    The weighted average concentrate characteristics for the global 267.3Mt Inferred Resource are 61% Fe, 0.7% V2O5, 9% TiO2, 1.2% SiO2, 3.2% Al2O3, 0.005% P and 0.3% S at a Mass Recovery of 31%.
    Tete Iron Ore Project
    Summarised Grade Tonnage Report
    Whole Rock Grade Estimates Derived by Ordinary Kriging
    No Lower Grade Cutoff Applied
    Resource Classification Based on JORC Code (2004) Guidelines

    AREA Resource Tonnage Fe V2O5 TiO2 SiO2 Al2O3 P LOI CaO K2O MgO Mn Na2O S
    Classification (Mt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
    Ruoni North Inferred 93.4 34.6 0.4 12.7 12.8 10.2 0.003 -1.6 2.6 0.2 5.0 0.2 1.2 0.2
    Chitongue Grande Inferred 60.9 24.9 0.2 9.6 29.4 12.0 0.003 -0.2 4.8 0.7 4.6 0.2 2.1 0.3
    South Zone Inferred 113.0 27.5 0.2 10.1 25.9 8.0 0.290 -0.7 5.2 0.3 6.9 0.3 1.2 0.3

    TOTAL Inferred 267.3 29.4 0.3 10.9 22.1 9.7 0.124 -0.9 4.2 0.4 5.7 0.2 1.4 0.3
    The mineralisation is based on geologically defined zones and therefore reported accordingly; it is currently assumed that mining selectivity is limited within the mineralised zones. Three-dimensional block models were generated for the Chitongue Grande and Ruoni North deposits to enable grade estimation. Coffey Mining has based its grade interpolation on Ordinary Kriging. Grade was interpolated based on 4m composite samples using domain control for both composite and block selections applying hard boundaries between the zones. For the concentrate grades, a service variable approach to the estimation of block concentrate grades is required to account for the variation in the percent weight.
    On-going Resource Drilling: Tenge/Ruoni Prospect
    Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is progressing rapidly and has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation 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:
    - Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty seven reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of c.5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.
    - Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north).
    The average head grade of all Ruoni South significant intercepts reported to date is 30% Fe with the DTR concentrate grades reporting a weighted average of 63% Fe, 1% V2O5 and 6.4% TiO2 at a mass recovery of 27% (see announcements dated 28 September and 27 October 2011 for details). Of particular interest is the consistent 1% V2O5 concentrate grade which is 25% higher than results reported from Ruoni North and some 40% higher than indicated concentrate grades from South Zone and Chitongue Grande resource areas.
    - Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A Drilling programme of 3,000m to 4,000m is well underway with an aggregate total of 2,250m already completed.
    Consultant, Coffey Mining Pty Ltd, is currently developing a geological model for the Ruoni South block and is waiting on assay results to complete a resource estimate (scheduled for the end of November). The Company anticipates receiving the first analytical results from Tenge during December.
    Scoping Study
    Baobab is working alongside Coffey Mining to compile a revised Scoping Study. The study is drawing on the results of the resource calculations, metallurgical test work and a recently completed infrastructure review together with mine scheduling and pit optimisation studies currently underway to build a financial model assessing the economic viability of various process routes. Preliminary study results are expected during the latter half of November.
    Tete Project Overview: located in Africa's emerging mining & industrial hub
    The Tete Project, covering an area of 632km2, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Rio Tinto's mega coal projects. The project is strategically located to access 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 titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group is composed of a series of five prospects (Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.
    Baobab has entered into a strategic partnership with International Finance Corporation (IFC), the commercial arm of the World Bank, at both the corporate and project equity levels.
    Tete Exploration Summary: resource base fast approaching targeted 300Mt
    The Company commenced exploration initiatives in mid-2008 and has focused its efforts to date on the Massamba Group area. The Singore area remains largely untested, but highly prospective.
    Work completed by the Company during 2009 culminated in the estimation of a 47.7mt maiden Inferred Mineral Resource over a 500m portion of the Chitongue Grande prospect and a 400mt to 700mt Exploration Target over the broader Massamba Group area.
    Independent scoping metallurgical studies and financial modelling completed in 2009 indicate positive project economics in the production of high quality titano-magnetite/vanadium and ilmenite (titanium) concentrate commodities from a resource base of 300Mt.
    Exploration during 2010 included a 7,500m scout drilling programme designed to assess the Chimbala and South Zone prospects of the Massamba Group trend.
    The Company accelerated exploration activities in 2011 with over 35,000m of diamond and RC drilling completed to date. The campaign season commenced in February with resource drilling at the South Zone prospect. This work culminated the estimation of an 113Mt JORC Inferred Mineral Resource (announced on 30 August 2011). The resource remains open at depth and along strike.
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    Default Re: LON:BAO Baobab Resources

    Should surpass the 300mt target pretty soon then from the looks of it, Nice!

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    Default Re: LON:BAO Baobab Resources

    New Edison research note out, makes interesting reading:

    http://www.edisoninvestmentresearch....1111update.pdf

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    Default Re: LON:BAO Baobab Resources

    Really not responding to much at the moment, and getting continuously pumpelled, the scoping study should surely start a resurgence, but the bad thing with BAO is it's JORCs are all coming in little waves, in a bull market this would probably be more beneficial, but at the moment it's just causing further drops, whereas BEM is one big chunk of JORC released in one go, hence the build up in anticipation of news
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    Default Re: LON:BAO Baobab Resources

    If anything, it's giving plenty of top up time before all the results are in, just need to be in a position where cash is actually available TO top up, it's sickening seeing so many cheap stocks out there and not being able to do anything about it

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    Default Re: LON:BAO Baobab Resources

    I hear ya pimp, it is reaching that point where some stocks are beginning to respond, TYM BEM etc. so it could be an opportunity to get out of some at break-even on the highs, and pile into the BAOs of the stock market that are still testing previous lows, involves some dellboy-esque wheeler dealing though
    Do not repay good fortune with bad grace

    If you want to make God laugh, tell him your plans

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    Default Re: LON:BAO Baobab Resources

    final results

    BAOBAB RESOURCES PLC

    Final Results for the 12 months ended 30 June 2011

    11 November 2011
    Baobab Resources plc, the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to announce its final results for the year ended 30 June 2011. Extracts from the financial statements are set out below.

    CHAIRMAN'S STATEMENT

    Baobab Resources plc ("Baobab" or the "Company") has continued to make significant progress during the year in Mozambique, for the most part concentrating on its Massamba iron/vanadium/titanium project. Drilling commenced in February with the intention of bringing 300 million tonnes into resource categories at the completion of the 2011 drilling programme. The resource drilling programme at South Zone was completed in June culminating in a JORC inferred resource of 113 Mt with concentrate grades of 61% Fe, 0.7% V2O5 and 7.7% TiO2 at a mass recovery of 23%.

    On 31 October the Group announced that the Chitongue Grande resource had been increased to 61 million tonnes at a head grade of 25% Fe with indicative average concentrate grade of 64% Fe, 0.7% V2O5 and 5% Ti02 at a mass recovery of 20%. On 31 October the Group also announced the estimation of a 93 Mt Inferred Resource at Ruoni North with a head grade of 35% Fe and an indicative average concentrate grade of 58% Fe, 0.8% V205 and 13% Ti02 at a mass recovery of 47%. The high mass recoveries recorded at the Ruoni North deposit means that it will yield more than double the concentrate per tonne of ore processed compared with the South Zone or Chitongue Grande.

    The 267 Mt JORC global Inferred Resource reports an average head grade of 29% Fe with weighted average concentrate grades of 61% Fe, 0.7% V2O5 and 9% Ti02 at a Mass Recovery of 31%. The Group anticipates that the Ruoni South resource estimate scheduled for late December and the Tenge resource estimate scheduled for January 2012 will add substantially to this global resource.

    In addition to the above, reconnaissance work at Singore has been very encouraging and rock chip samples returned DTR concentrate grades up to 64.1% Fe with 47.7% mass recovery. The Group will consider resource drilling at both Singore and Chimbala in 2012.

    Tete has demonstrated that it is an emerging mining and industrial hub of southern Africa with majors Vale and Rio Tinto/Tata Steel developing massive coal projects with mining of both thermal and metallurgical coal commencing this year. Coal fired power plants are in the planning stage and expansion of low tariff hydro-electric power from Cahora Bassa and Mphanda N'kuwa is also planned. Railways connecting Tete to the ports of Beira and Nacala are being refurbished as are the ports themselves. The Group also has Nippon Steel and Jindal Steel as neighbours as well as Ncondezi Coal and Beacon Hill Resources.

    The Tete project has proved that it has high potential and the Group will continue to advance development during the coming year as rapidly as possible as it moves into pre-feasibility studies. In early September a scoping study was initiated in order to investigate the potential of unlocking the iron and steel potential of Massamba which is situated in strategic proximity to abundant low tariff hydro-electric power, coal resources and water.

    Consideration is being given to smelting of concentrate to produce pig iron and a further upgrade to generate steel products. The development of higher value products on site reduces exposure to market fluctuations and mitigates the requirement to compete for rail infrastructure.

    In November 2010, the Company entered into a Joint Venture Agreement with North River Resources plc (North River) over their Monte Muande licences whereby Baobab would earn an initial 60% interest in return for spending not less than $625,000 on a 2,000 metre diamond drilling programme. These licences adjoin the Tete project licences and are prospective mainly for magnetite and phosphorus and were subject to an exploration campaign undertaken by the Geological Institute of Belgrade in 1983 to 1985. Compilation of historical trench and drill hole data led to independent consultants giving an iron and phosphate exploration target of 200Mt to 250Mt down to an average depth of only 40 metres, the limit of previous drilling. Of particular interest is the fact that the target includes 3Mt to 5Mt of eluvial material grading between 45% and 55% Fe which potentially could be upgraded to a DSO (Direct Shipping Ore) product. A high level review of available metallurgical data indicates that a magnetite concentrate containing 67% Fe could be generated via a simple, cost-effective process of coarse grinding and magnetic separation, followed by regrinding and a flotation circuit to recover a valuable phosphate rock concentrate. The first round of analytical results from the diamond drilling programme is due during December and analysis is also underway to assess the DSO potential of the eluvial material.

    The Group's other projects notably the Mundonguara Nickel/Copper/Gold project and the Changara project are covered in some detail in the Project Overview.

    The Company has raised funds as and when required and a share placement of 11,625,000 at 40p per share was completed in April 2011 raising £4,650,000 before expenses. In addition to these funds the International Finance Corporation (IFC), a member of the World Bank group, contributed USD$1,291,000 as its joint venture funding for the Tete project in April.

    In October 2010 Baobab secured a three year Equity Line Facility ("ELF") of up to £5 million with Dutchess Opportunity Cayman Fund Ltd. The ELF was arranged by First Columbus LLP, Dutchess's joint venture partner in the UK. We believe that this is a cost effective solution for some future financings with management being in control of the timing on accessing capital. In March £1,111,000 was drawn down through the issue of 4,946,572 shares at a price of 22.46p and the ELF was increased to £17 million in April. Following the March draw down a total of £1,958,700 has been drawn down by the Company to date.

    We thank all of our employees including the dedicated workforce in Mozambique for their continued hard work and commitment. We also thank our shareholders for their continued support and encouragement. We firmly believe that Baobab is poised for further exploration and development success in 2012.
    Reflect upon your present blessings of which every man has many - not on your past misfortunes, of which all men have some.
    Charles Dickens

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    Default Re: LON:BAO Baobab Resources

    RNS Number : 9467S
    Baobab Resources PLC
    29 November 2011

    


    29 November 2011
    Baobab Resources Plc

    £192,500 DRAWDOWN ON EQUITY LINE

    Baobab Resources plc ('Baobab' or the 'Company'), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique, is pleased to announce that it has drawn down £192,500 of its £17million Equity Line Facility ("ELF") with Dutchess Opportunity Cayman Fund, Ltd ("Dutchess"), announced on 25 October 2010. The funds will be used to assist with the development of the Company's flagship project at Tete and following this drawdown the outstanding balance of the ELF will be £14,848,800.

    Under the terms of the ELF, the Company has allotted, conditional on admission, 1,375,000 ordinary shares ("Ordinary Shares") to Dutchess at a price of 14.00 pence per share. This price is calculated by a formula under the terms of the ELF based on the prevailing market price.

    Application has been made to the London Stock Exchange for 1,375,000 Ordinary Shares to be admitted to AIM and it is expected that dealings will commence on 2nd December 2011 These shares will rank pari passu in all respects with the existing issued Ordinary Shares in the Company. The total issued share capital of Baobab following this allotment will be 189,012,900 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury and so the total number of voting rights in the Company is 189,012,900.

    Jeremy Dowler, Chairman, commented:

    "This modest injection of funds ensures that the Company retains sufficient working capital whilst pursuing a number of financing options for the planned pre-feasibility study in 2012."

    Reflect upon your present blessings of which every man has many - not on your past misfortunes, of which all men have some.
    Charles Dickens

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    Default Re: LON:BAO Baobab Resources

    RNS Number : 9469S
    Baobab Resources PLC
    29 November 2011

    
    BAOBAB RESOURCES PLC
    POSITIVE SCOPING STUDY RESULTS FROM TETE PROJECT
    ROBUST ECONOMICS: NVP10 US$1.4 BILLION AND IRR 34%
    29th NOVEMBER 2011

    Baobab Resources Plc ("Baobab" or the "Company") is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present a summary of the Scoping Study (the 'Study') completed by independent consultants, Coffey Mining Pty Ltd, assessing the economic viability of the Company's Tete iron/vanadium/titanium Project ("the Project") in Mozambique. The Study has been completed to a 'scoping' level of accuracy, based on available technical information, and the results reported should be treated accordingly.
    HIGHLIGHTS
    • The Scoping Study, applying conventional beneficiation and smelting technologies, assessed two production scenarios:
    • Scenario 'A': base-case production of 3Mtpa titano-magnetite concentrate and 0.5Mtpa
    ilmenite concentrate products for export. Initial capital expenditure (capex) estimate of US448M.
    • Scenario 'B': capitalizing on the Project's access to low tariff hydro-electric power and
    strategic proximity to thermal coal reserves to add further value on site through the mine-mouth smelting of 1Mtpa pig iron. Initial capex estimate of US$690M.
    • While the base-case model for scenario 'A' demonstrates viable Project fundamentals, optimisations and financial modelling of Scenario 'B' at a 10% discount rate provides compelling economics with:
    US$1.4B NPV10 (before tax).
    34% Internal Rate of Return (IRR before tax).
    US$275M estimated average annual net cash flow after capex.
    25 years minimum life of mine.
    • No value has been ascribed to the vanadium content in either scenario. It is assumed that any vanadium credits in the Scenario 'A' concentrate would be off-set against titanium penalties. However, it is envisaged that a vanadium slag, extracted as a by-product in the pig iron process, could add significant Project value in Scenario B. Further metallurgical test work is required before this may be incorporated in the financial model.
    • The Study has only modelled the Ruoni North inferred resource, comprising 93Mt of the current 267Mt global resource inventory. Based on drill results to date from the contiguous deposits of Tenge and Ruoni South, Coffey believes that the Tenge/Ruoni area could generate sufficient resources to support a standalone operation with a mine-life of 30 to 50 years (Scenarios 'A' and 'B' respectively).
    Commenting today, Ben James, Baobab's Managing Director, said: "the excellent Scoping Study results show very clearly the 'value add' from the plans for on-site smelting of pig iron and underlines the strategic advantages of the Project's unique geography with respect to infrastructure and complementary resources. Producing a higher value, high demand product will not only broaden the market base, but also mitigate the requirement to compete for rail and port access.
    "The vanadium potential remains to be modelled and could add further to the value of this project. Reduced input costs through long-term domestic coal contracts and on-site power co-generation also need to be assessed, while the expanding resource base at Tenge-Ruoni, underpinning a meaningful +30 year mine life, allows scope for ramping up production. It's clear to us that we have the opportunity to add substantial value to the already impressive bottom line of this Project."
    Key Findings & Outcomes
    Economic analysis indicates that there is the potential to establish an economically viable operation at the Tete Project. This was based on the assumption that two concentrates can be produced, namely a titano-magnetite and an ilmenite concentrate. In addition, the scenario of producing pig iron was evaluated using conventional iron making technology (Rotary Kiln, Smelter), which is well established in South Africa. The estimated net present value (NPV) and internal rate of return (IRR) for the two product scenarios evaluated are shown below in Table 1.
    Table 1
    NPV & IRR estimations for Scenarios A & B

    Scenario A Scenario B
    Item Unit Iron Concentrate Pig Iron
    Resource base Mt 93 93
    Product produced Mtpa 3 1
    Gross Revenue US$M 5,133 12,101
    Royalty US$M 154 363
    Net Revenue US$M 4,979 11,738
    Operating Expenditure US$M 2,735 4,571
    Capital Expenditure - Initial US$M 448 690
    - Sustaining US$M 101 297
    Cashflow US$M 1,695 6,180
    Annual average net cash flow after CAPEX US$M 143 275
    NPV @ 10% - Before tax US$M 467 1,361
    Internal Rate of Return (IRR) - Before tax % 28 34
    Payback (Based on discounted cashflow) Yr 4.1 3.2
    Mine life Yr 15 25

    The Study has been completed to a 'scoping' level of accuracy, based on available technical information. The accuracy of the capital and operating expenditures presented in the Study are considered to be within a level accuracy of ±40% to 50%.
    The current 267Mt inferred resource base, comprising three areas, is summarised in Annexure 1. The 93Mt Ruoni North resource exhibits a much higher mass recovery and Fe head grade than both Chitongue Grande and South Zone and, as such, economic analysis of the Project was based on Ruoni North only, which currently has a sufficient large resource base to sustain a mine life of in excess of 15 years. Furthermore, preliminary drilling results indicate that the Tenge deposit, which is contiguous with Ruoni North, will exhibit a similar grade tenor and will possibly yield a larger tonnage.
    The Project is strategically located to access abundant, low tariff hydro-electric power and thermal coal, two critical components in the beneficiation of iron ore and down-stream smelting.
    Tete is rapidly becoming a significant mining and industrial hub with current estimates indicating that the area could be producing up to 20% of global coking coal within the next decade. The development of the coal reserves is being led by two of the world's mining powerhouses, Rio Tinto and Vale, as well as internationally respected steel manufacturers Jindal, Nippon Steel, Posco and Tata Steel. The Project stands to benefit from the significant infrastructure investments already being made in the region by these companies.
    The mineralisation at Tete includes significant amounts of vanadium. However, for the purpose of the economic assessment no value was ascribed to vanadium in either the titano-magnetite concentrate or pig iron models. It was assumed that any credits associated with vanadium would be off-set by the potential penalties incurred as a result of titanium present in the titano-magnetite concentrate. It is envisaged that a vanadium slag could be extracted as a final process in the smelting stage of the pig iron production. Additional metallurgical testwork and capex/opex research is required before this stage could be incorporated into the financial model, which has the potential effect of enhancing the overall Project economics.
    Resources & Mining
    The current 267Mt resource base, comprising three areas as summarised in Annexure 1, is the culmination of systematic diamond and reverse circulation drilling programmes completed since March 2009 totalling more than 57,000m. Mineralised zones are routinely submitted for X-Ray Fluorescence Spectrometry (XRF) head analysis followed by Davis Tube Recovery (DTR) determination and XRF assay of recovered magnetic concentrate. A total of more than 5,900 DTR determinations have been completed to date.
    The Scoping Study only modelled the 93Mt JORC inferred mineral resource at Ruoni North. Ruoni North is one of three contiguous deposits comprising the Tenge/Ruoni area where the Company intends to release two additional resource statements based on completed and continuing drilling programmes in the coming months. Drill results to date from Tenge and Ruoni South are encouraging and Coffey believes that the Tenge/Ruoni area could generate sufficient resources to support a standalone operation with a mine-life of 30 to 50 years.
    The Scoping Study assumed a conventional open pit method, drill and blast followed by load and haul, would be employed at the Project. Ruoni North pit optimisations, using Whittle Four-X software, were undertaken to generate pit shells from which mine production schedules could be developed for use in the cash flow model.
    Mineral Processing
    The Scoping Study evaluated two production scenarios, namely:
    • Scenario 'A': Producing 3Mtpa of titano-magnetite concentrate
    This scenario assumes a crusher feed rate of approximately 6.4Mtpa to produce 3.0Mtpa of 150΅m titano-magnetite concentrate grading 58% Fe and 0.7% V2O5. The concentrate would be beneficiated using a conventional low intensity magnetic separation (LIMS) circuit with the non-magnetic reject passing through a combined wet high intensity magnetic separation (WHIMS) and gravity separation circuit to generate a 0.5Mtpa ilmenite by-product concentrate grading c.50% TiO2. Both concentrate products would be railed to suitable ports for export.
    • Scenario 'B': Producing 1Mtpa of pig iron
    This scenario assumes a crusher feed rate of approximately 3.6Mtpa to produce 1.7Mtpa of 150΅m titano-magnetite concentrate, which would be re-milled to 45΅m and agglomerated before being refined to produce 1.0Mtpa of pig iron product. Additionally, approximately 0.3Mtpa of 50% TiO2 ilmenite concentrate would be produced during the beneficiation process and sold separately. The vanadium may also be recovered as vanadium pentoxide slag and contribute further to Project revenue.
    The iron making technology utilises multi-hearth furnaces and rotary kilns for the direct reduction of the agglomerated concentrate prior to smelting in an electric furnace. Titanium and other impurities are slagged off during the smelting process. The molten Fe/V then enters a vanadium recovery vessel before the hot metal is directed to the casting unit to mould pig iron billets. This technology is proven for the processing of ores of similar specification to the Project's ore and is in operation in many plants worldwide, including NZ Steel's Glenbrook facility in New Zealand and EVRAZ's Highveld Steel plant in South Africa.
    Power co-generation is possible by capturing off-gases from the direct reduction and smelting processes and can constitute a significant percentage of the plant's overall energy requirements (co-generation accounts for c.60% of NZ Steel's Glenbrook plant requirements).
    Please access the pdf version of this announcement at www.baobabresources.com to view process flow sheets in Annexure 2.
    The pig iron market size is experiencing rapid growth and is currently estimated at c.70Mtpa (inclusive of domestic Chinese market). Demand is largely driven by the increasing number of electric arc furnace (EAF) steel plants being commissioned. EAF's, which primarily process scrap metal, value pig iron for its consistent high density, low impurity, qualities and its predictable behaviour in the smelting process. These benefits result in a consistent higher price of pig iron compared to scrap
    Over the last decade the price of pig iron, driven by the burgeoning global demand for crude steel, has increased inexorably at an average rate of more than 15% per annum. The price of pig iron shows a strong correlation with raw material costs (iron ore and coal). Current pig iron prices are c.US$500/t.
    Infrastructure
    The Project is strategically located to access abundant, low tariff hydro-electric power and thermal coal, two critical components in the beneficiation of iron ore and down-stream smelting.
    Tete is rapidly becoming a mining centre of global significance with current estimates indicating that the area could be producing up to 20% of the world's coking coal within the next decade. The Project stands to benefit from the significant infrastructure investments already being made in the region by companies such as Rio Tinto and Vale as they bring their coal reserves into production.
    Electricity & Coal Supply:Low tariff hydro-electric power is readily available from the 2,075MW Cahora Bassa dam. Studies are underway to expand the dam's capacity by an additional 1,300MW. A new 1,500MW scheme at Mphanda N'kuwa, also on the Zambezi River, is in advanced planning stages and due to commence production in 2015.
    The Project is surrounded by a number of tier one thermal and coking coal projects, mainly represented by Rio Tinto (in joint venture with Tata Steel at the Benga operation), Vale, Minas de Revuboe (a Joint Venture of Talbot Group, Nippon Steel and Posco), Jindal Steel and Power and London listed companies Ncondezi, Eurasian Natural Resources Corporation ('ENRC') and Beacon Hill Resources. Since it is likely that the coal companies' focus will be on the financially more lucrative coking coal export, Baobab expects to be able to source an abundance of low cost thermal coal ex-works.
    Coal fired power plants have been proposed for Vale's Moatize and Rio Tinto's Benga coal operations as well as Jindal's project. Riversdale (now Rio Tinto) has announced that the Benga power station will commence production in 2013 at an initial capacity of 500MW with the option to expand to 2,000MW.
    Port: The port of Beira is currently being refurbished to accommodate the coal production around Tete. Significant multilateral investment is going into upgrading the port of Nacala. Rio Tinto is also looking at barging opportunities on the Zambezi River and reportedly has the backing of both the Mozambique and Malawi governments.
    Table 2
    Port Development Timeline

    Port Capacity [Mtpa] Target
    Task force 1
    Beira 20
    Nacala 18 2014
    Task force 2
    Beira Option 1 25
    Option 2 (if Cape size vessels feasible) 40
    Nacala 30 2016 / 2017
    Greenfields Port 25
    Task force 3
    Beira Option 1 25
    Option 2 (if Cape size vessels feasible) 40
    Nacala 30
    Greenfields Port 75 2025
    The government, in association with the private sector, has launched three task forces to move the development of coal export options forward. It is understood that these three task forces have been mandated to review the expansion options at Beira and Nacala and an additional Greenfields deep water port in Zambezia Province at different time horizons as summarised in Table 2. The development timeline coincides with the timeline of the Project, with first production modelled for 2016.
    An order of magnitude study ('OMS') has been completed for the proposed Greenfields port by a consortium composed of Rio Tinto, Minas de Revuboe and Ncondezi. The port, located north of the Zambezi river mouth and less than 500km from Tete, would be capable of handling up to cape size vessels with an expandable capacity from an initial 25Mtpa to 100Mtpa.
    Rail: The rail networks linking the Tete region with the ports of Beira and Nacala are in the process of refurbishment and expansion. Furthermore, a dedicated heavy haulage corridor linking the proposed Greenfields port with Tete was reviewed in the OMS mentioned above.
    Capital & Operating Expenditure Estimates
    The accuracy of the capital and operating expenditures ('capex' and 'opex' respectively) presented in the Scoping Study are considered to be within a scoping level accuracy of ±40% to 50%.
    Table 3 summarises the capex estimates for the 6.4Mtpa Scenario 'A' and 3.7Mtpa Scenario 'B'. It is assumed that the existing port facilities will be upgraded by the port authority and the port capital cost is associated with the mobile equipment required to load and haul the material onto the ship loader feed.
    The infrastructure capital cost estimate is based on similar scale operations in remote areas and includes an electrical power distribution allowance of US$0.5M per kilometre, assuming a 40km distance from the main power source. The rail capital cost estimate was based on US$1M per linear kilometre construction, again assuming a 40km distance to the nearest rail network at Tete, and includes all required rolling stock.
    Working capital is set at US$16M, covering the first six weeks of operating expenditure. Furthermore, sustaining capital was based on 2% of the total initial capital expenditure, which equated to US$13M per annum for the 1Mtpa pig iron scenario and US$9M per annum for the 3Mtpa concentrate scenario.
    Table 3
    Summary Capital Costs

    Mill Throughput (Mtpa)
    Cost Centre Unit 3.7 6.4
    Infrastructure [US$M] 32 32
    Concentrator [US$M] 130 200
    Smelting & Refining [US$M] 390 Nil
    Mining [US$M] 3 5
    Rail [US$M] 90 170
    Port [US$M] 5 5
    Feasibility Study [US$M] 20 20
    Total [US$M] 670 432
    Table 4 summarises the opex estimates for both scenarios. Power costs are based on hydro-electric power supplied by the Cahora Bassa dam at US0.06/kWhr. The cost of coal is based on US$90/t ex-works from a nearby plant.
    Table 4
    Summary Site Operating Costs

    Mill Throughput (Mtpa)
    Cost Centre Unit 3.7 6.4
    Processing [US$/t milled] 5.75 5.40
    Smelting & Refining [US$/t conc] 57.00
    Contract mining [US$/t mined] 3.00 2.50
    General and administration [US$M/yr] 6 8
    Rail [US$/t conc] 15 15
    Port [US$/t conc] 7 7

    Financial Model & Sensitivity Analysis
    The Scoping Study assumed long term commodity prices of US$450/t, US$90/t and US$150/t for pig iron, titano-magnetite concentrate and ilmenite concentrate respectively. A 10% discount rate and 3% government royalty has been adopted for the base case cash flow analysis.
    Due to the early stage of the Project and mining legislation revisions currently underway in Mozambique, it has not been possible to accurately model the impact of corporate taxation. Coffey has applied a flat rate of 32% company tax to the model from Year 1 (ie: no tax holiday simulated) to estimate approximate after tax NVP and IRR figures.
    The model is ungeared, assuming 100% equity funding, and does not include any price or cost escalation.
    Table 5 provides summaries of the base case cash flow models for both scenarios. While both scenarios demonstrate positive project economics, the production of pig iron clearly stands out as the more robust option.
    Table 5
    Summary Base Case Cash Flow Model


    Item Unit Scenario A Value Scenario B Value
    Total Material Mt 295 286
    Waste Mt 200 197
    Strip Ratio (average) w 2.1 2.2
    Mill Feed Tonnes Mt 94.2 89.4
    Fe % 34.8 34.8
    Titano- magnetite Concentrate & Pig Iron
    Mass recovery % 47.3 47.3
    Concentrate production Mtpa 3 1.7
    Fe in concentrate % 58 58
    Pig Iron production Mtpa 1
    Ilmenite Concentrate
    Mass recovery % 8 8
    Physicals Ilmenite Concentrate Mtpa 0.5 0.3
    Gross Revenue US$M 5,133 12,101
    Royalty US$M 154 363
    Net Revenue US$M 4,979 11,738
    Operating Expenditure US$M 2,735 4,571
    Capital Expenditure - Initial US$M 448 690
    - Sustaining US$M 101 297
    Cashflow US$M 1,695 6,180
    Annual average net cash flow after CAPEX US$M 143 275
    NPV @ 10% - Before tax US$M 467 1,361
    - After tax US$M 247 892
    Internal Rate of Return (IRR) - Before tax % 28 34
    - After tax % 21 27
    Payback (Based on discounted cashflow) Yr 3.9 3.1
    Financials Mine life Yr 15 25


    A sensitivity analysis has been undertaken to examine the Project sensitivity to changes in key economic parameters. The resulting NPV estimates for Scenarios 'A' and 'B' are summarised in Tables 6 and 7 below.
    In both Scenarios, the Project is most sensitive to a change to the Fe price. The next level down in sensitivity is a change to the ilmenite concentrate price, followed by the mine operating costs, rail cost and concentrator operating cost.
    Table 6
    Scenario A - Summary Sensitivity Analysis Results

    Change Net Present Value @ 10.0%
    [$ million]
    (Before tax)
    Parameter
    [%] Fe concentrate price Ilmenite concentrate price Concentrator opex Mining opex Rail opex G&A opex Initial Capex Discount rate
    60% 1,360 712 351 269 281 437 248 205
    40% 1,062 630 390 335 343 447 321 273
    20% 764 548 428 401 405 457 394 359
    0% 467 467 467 467 467 467 467 467
    -20% 169 385 505 533 529 477 540 604
    -40% -129 303 544 599 590 486 613 780
    -60% -426 222 582 664 652 496 686 1,007


    Table 7
    Scenario B - Summary Sensitivity Analysis Results

    Change Net Present Value @ 10.0%
    [$ million]
    (Before tax)
    Parameter
    [%] Pig Iron price Ilmenite concentrate price Conc opex Smelt&Ref opex Mining opex Rail opex G&A opex Initial Capex Discount rate
    60% 3,132 1,528 1,276 956 1,251 1,279 1,334 1,006 618
    40% 2,542 1,472 1,304 1,091 1,288 1,306 1,343 1,124 802
    20% 1,951 1,416 1,332 1,226 1,324 1,334 1,352 1,242 1,042
    0% 1,361 1,361 1,361 1,361 1,361 1,361 1,361 1,361 1,361
    -20% 770 1,305 1,389 1,495 1,397 1,388 1,369 1,479 1,792
    -40% 179 1,249 1,417 1,630 1,433 1,415 1,378 1,597 2,386
    -60% -411 1,194 1,445 1,765 1,470 1,442 1,387 1,716 3,220


    The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
    The information in the report which relates to the Mineral Resource is based on information compiled by Iain Macfarlane who is a Member of The Australasian Institute of Mining and Metallurgy and is employed by Coffey Mining Ltd. Mr. Macfarlane has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Reserves". Mr. Macfarlane consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.


    A COPY OF THIS ANNOUNCEMENT WITH ASSOCIATED DIAGRAMS IS AVAILABLE FOR DOWNLOAD FROM THE COMPANY'S NEW WEBSITE www.baobabresources.com

    For further information, please contact:
    Baobab Resources PLC
    Ben James: Managing Director Tel: +61 8 9430 7151
    Jeremy Dowler: Chairman Tel: +44 1372 450529

    Grant Thornton Corporate Finance
    Gerry Beaney / David Hignell Tel: +44 20 7383 5100

    Fortbridge Consulting
    Matt Beale Tel: +44 7966 389 196


    ANNEXURE 1: Resource Inventory
    Detailed descriptions of individual resource areas may be found in announcements dated 30 August and 31 October 2011.
    Tete Iron Ore Project
    Summarised Grade Tonnage Report
    Whole Rock Grade Estimates Derived by Ordinary Kriging
    No Lower Grade Cutoff Applied
    Resource Classification Based on JORC Code (2004) Guidelines

    AREA Resource Tonnage Fe V2O5 TiO2 SiO2 Al2O3 P LOI CaO K2O MgO Mn Na2O S
    Classification (Mt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
    Ruoni North Inferred 93.4 34.6 0.4 12.7 12.8 10.2 0.003 -1.6 2.6 0.2 5.0 0.2 1.2 0.2
    Chitongue Grande Inferred 60.9 24.9 0.2 9.6 29.4 12.0 0.003 -0.2 4.8 0.7 4.6 0.2 2.1 0.3
    South Zone Inferred 113.0 27.5 0.2 10.1 25.9 8.0 0.290 -0.7 5.2 0.3 6.9 0.3 1.2 0.3

    TOTAL Inferred 267.3 29.4 0.3 10.9 22.1 9.7 0.124 -0.9 4.2 0.4 5.7 0.2 1.4 0.3

    The expected weight recovery (mass recovery) and recovered concentrate grades, based on routine DTR determinations and XRF analysis, are in the order of:
    § Ruoni North: 58% Fe, 0.8% V2O5, 12.9% TiO2, 0.8% SiO2, 3.5% Al2O3, 0.001% P and 0.1% S at a Mass Recovery of 47%.
    § Chitongue Grande: 64% Fe, 0.7% V2O5, 4.8% TiO2, 1.5% SiO2, 2.8% Al2O3, 0.001% P and 0.4% S at a Mass Recovery of 20%.
    § South Zone: 61% Fe, 0.7% V2O5, 7.7% TiO2, 1.5% SiO2, 3.2% Al2O3, 0.001% P and 0.3% S at a Mass Recovery of 23%.
    The weighted average concentrate characteristics for the global 267.3Mt Inferred Resource are 61% Fe, 0.7% V2O5, 9% TiO2, 1.2% SiO2, 3.2% Al2O3, 0.005% P and 0.3% S at a Mass Recovery of 31%.
    Reflect upon your present blessings of which every man has many - not on your past misfortunes, of which all men have some.
    Charles Dickens

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    KP
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    Default Re: LON:BAO Baobab Resources

    BAOBAB RESOURCES PLC
    RESOURCE STATEMENT No. 3:
    BAOBAB EXCEEDS 300Mt GLOBAL RESOURCE TARGET WITH RUONI SOUTH
    7th DECEMBER 2011

    Baobab Resources Plc ("Baobab" or the "Company") is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present a resource update at the Massamba Group of its Tete iron / vanadium / titanium project.

    HIGHLIGHTS
    • Massamba Group global resource base expanded to 324Mt (JORC) with the completion of the Ruoni South resource estimate.
    • Ruoni South 56Mt Inferred Resource reports a head grade of 34% Fe with an average concentrate grade of 62% Fe, 0.9% V2O5 and 8% TiO2 at a mass recovery of 34%.
    • The Ruoni South resource complements the 93Mt estimate at Ruoni North and delivers a higher quality concentrate at a competitive mass recovery.
    • Drilling programmes at the contiguous Tenge deposit are all but concluded, with 24 drill holes completed for an aggregate total of c.4,500m. Drilling is defining a substantial package of mineralisation, approximately 120m thick, that comprises a significant portion of the 100m high Monte Tenge and dips shallowly towards the west. Initial analytical results are expected during December with a resource statement scheduled for February 2012.
    Commenting today, Ben James, Baobab's Managing Director, said: "Baobab is very pleased to present the Ruoni South resource estimate which expands the global inventory beyond the 300Mt milestone and in doing so demonstrates the Company's commitment to not just deliver on stated targets, but to exceed them. The indicative quality of the Ruoni South concentrate is encouraging, particularly the higher vanadium grade, and opens a range of production possibilities to be considered during the pre-feasibility study.
    "The Tenge drilling is defining a significant package of mineralization that will add substantially to the resource inventory early in 2012. The Project is maturing rapidly, due largely to the accelerated drilling campaigns this year, and the Management recognises the extraordinary effort and commitment made by the technical teams in the field. 2012 will see the status of the Project transition from one of exploration to one of development in what is shaping up to be the most exciting mining address in southern Africa."
    Resource Estimate
    Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at Ruoni South. Their estimates of Inferred Mineral Resources, including the South Zone estimate (announced on 30 August 2011), Chitongue Grande and Ruoni North (both announced on 31 October 2011), are summarised below. All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on the Ruoni South estimation parameters are presented as Annexure 1.
    In many areas the resource blocks remain open along strike and at depth, requiring extensional drilling programmes in 2012. Some areas of intersected mineralisation remain unclassified due to insufficient drilling density and will also require further drill definition.
    Due to consistent sampling and analytical protocols, including routine Davie Tube Recovery (DTR) determinations, across mineralised and non-mineralise waste material at Ruoni South, Coffey Mining has been able to predict the expected average concentrate characteristics for the mineralised material to an inferred level of confidence:
    § Ruoni South: 61.7% Fe, 0.93% V2O5, 7.96% TiO2, 1.04% SiO2, 3.10% Al2O3, 0.001% P and 0.22% S at a Mass Recovery of 34.5%.
    The expected weighted average concentrate characteristics for the global 323.5Mt Inferred Resource are 60.2% Fe, 0.8% V2O5, 9.7% TiO2, 1.1% SiO2, 3.3% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 31.4%.
    Tete Iron Ore Project
    Summarised Grade Tonnage Report
    Whole Rock Grade Estimates Derived by Ordinary Kriging
    *15% Lower Cutoff Grade Applied **No Lower Grade Cutoff Applied
    Resource Classification Based on JORC Code (2004) Guidelines

    AREA Resource Tonnage Fe V2O5 TiO2 SiO2 Al2O3 P LOI CaO K2O MgO Mn Na2O S
    Classification (Mt) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
    Ruoni South* Inferred 56.2 33.7 0.4 12.5 18.7 10.6 0.004 -1.1 3.1 0.3 4.8 0.2 1.2 0.2
    Ruoni North** Inferred 93.4 34.6 0.4 12.7 12.8 10.2 0.003 -1.6 2.6 0.2 5.0 0.2 1.2 0.2
    Chitongue Grande** Inferred 60.9 24.9 0.2 9.6 29.4 12.0 0.003 -0.2 4.8 0.7 4.6 0.2 2.1 0.3
    South Zone** Inferred 113.0 27.5 0.2 10.1 25.9 8.0 0.290 -0.7 5.2 0.3 6.9 0.3 1.2 0.3

    TOTAL Inferred 323.5 30.1 0.3 11.2 21.5 9.8 0.103 -0.9 4.0 0.4 5.5 0.2 1.4 0.3

    Where no lower cut-off grade has been applied, the resource blocks have been constrained by geologically defined mineralised zones and therefore reported accordingly; it is currently assumed that mining selectivity is limited within the mineralised zones. Three-dimensional block models were generated for the Ruoni South deposit to enable grade estimation. Coffey Mining has based its grade interpolation on Ordinary Kriging. Grade was interpolated based on 4m composite samples using domain control for both composite and block selections applying hard boundaries between the zones. Ordinary Kriging was also used to obtain estimates of DTR and service variables for Ruoni South. The concentrate grades (Fe, V2O5, TiO2, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, Na2O and S) were then back calculated from these estimates. For the concentrate grades of all other resource blocks, a service variable approach to the estimation of block concentrate grades is required to account for the variation in the percent weight.
    On-going Resource Drilling: Tenge/Ruoni Prospect
    Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni is nearing completion and has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation 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:
    § Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty seven reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of c.5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.
    The 93Mt Ruoni North resource estimate was announced to the market on 31 October 2011 and formed the resource base for a scoping study (also completed by Coffey Mining). The scoping study returned outstanding results, including a before tax US$1.4B net present value (NPV at 10% discount) and 34% internal rate of return (IRR) in the beneficiation and smelting of a pig iron product, that were announced on 31 November 2011.
    § Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north). The 56Mt resource estimate is discussed in detail above.
    § Tenge: representing the hinge zone of the fold, covering a strike length of approximately 1.3km, and defined by the Monte Tenge ridge which elevations of up to 100m above the local plateau. The drilling programme is nearing completion with 24 diamond and RC holes completed to date for an aggregate total of 4,518m. Drilling has outlined a c.120m thick package of strongly mineralised material that comprises a significant portion of Monte Tenge ridge and dips gently towards the west.
    Consultant, Coffey Mining Pty Ltd, will commence modelling of the Tenge resource block shortly with a resource statement scheduled for February 2012. The Company anticipates receiving the first analytical results from Tenge during December.
    Reflect upon your present blessings of which every man has many - not on your past misfortunes, of which all men have some.
    Charles Dickens

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