Baobab Resources plc (LON:BAO) Monte Muande Data Review Returns Positive Results
London, Jan 31, 2011 AEST (ABN Newswire) - Baobab Resources plc (
LON:BAO) ('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 with North River Resources plc (LON:NRRP) ('North River') in relation to North River's Monte Muande magnetite/phosphorus, base and precious metal project (the 'Project') in the Tete province of Mozambique. Baobab has the right to earn up to 90% equity in the project. The Company is pleased to present an update on work completed.
Highlights
- Compilation of trench and drill hole data from the Geological Institute of Belgrade (GIB) 1983-1985 exploration campaign at the Monte Muande magnetite/phosphorus deposit is nearing completion. Significant Head Grade intercepts include:
Diamond Drill Holes:
D-12: 40.1m @ 23.2% Fe and 4.98% P2O5 from surface
D-21: 44.1m @ 33.3% Fe and 3.21% P2O5 from 44.4m
G-16: 62.3m @ 25.1% Fe and 4.74% P2O5 from 13.5m
H-16: 39.5m @ 22.2% Fe and 5.91% P2O5 from surface
LM-11.5: 39.6m @ 28.1% Fe and 4.71% P2O5 from surface
Trenches:
T-3: 41.5m @ 49.5% Fe and 1.04% P2O5
T-11: 71.0m @ 34.7% Fe and 1.56% P2O5
T-12: 85.0m @ 40.1% Fe and 2.07% P2O5
T-13: 57.0m @ 43.2% Fe and 2.41% P2O5
T-14: 52.0m @ 39.4% Fe and 3.32% P2O5
- Soil geochemistry completed by Omegacorp during 2006-2007 delineates an anomalous corridor of iron (>15% Fe) and phosphorus (>1% P) extending from the GIB work area 4km to the southwest, overlying a robust magnetic trend.
- Geochemistry also outlines a discrete 2,500m x 400m copper in soil anomaly immediately west of the southwestern limit of the Fe/P corridor, overlying a parallel magnetic trend.
- Baobab has commissioned Coffey Mining consultants to review the GIB and Omegacorp data and generate a magnetite/phosphorus Exploration Target for the Monte Muande area as well as make preliminary investigations into potential mineral processing flow sheets.
- The south-western corner of exploration licence 1119L is underlain by 12km2 of lithologies of the Lower Karoo, which hosts the coal resources at Vale's (NYSE:VALE) Moatize and Riversdale's (ASX:RIV) (PINK:RFLMF) Benga and Zambeze projects. Mapping completed By Mavuzi Resources Ltd in 2008 identified evidence of coal exposed in river banks. Baobab has commissioned consultants to make a more detailed assessment of the coal potential as soon as field conditions allow.
- Baobab has scheduled 2,000m of diamond drilling at the Monte Muande deposit to commence during April 2011.
Commenting today, Ben James, Baobab's Managing Director, said: "the data compilation of historical work has paid off handsomely. The North River JV area is shaping up to be a robust, multi-commodity project in what is becoming a major mining and infrastructure hub of southern Africa. The drill hole and trench results highlight the potential grades of the deposit while the soil geochemistry indicates that the magnetite/phosphorus mineralisation extends for a considerable distance to the southwest where it has yet to be drill tested.
"The Company looks forward to reviewing the results from the commissioned studies over the coming months and, in particular, to collaring the first drill hole into the Muande deposit in 25 years.
"All of the above indicates that in the coming months the Company should be able to add substantially to the current 400 to 700 million tonne target announced for the Massamba Group alone"
Monte Muande Project Background
The Monte Muande project comprises two exploration licences covering an area of 338km2 located approximately 25km northwest of the provincial capital of Tete. The licences are valid until Q3 2014.
The licences are underlain by the Proterozic aged Chacocoma Granite and flanking Tete Mafic Complex. A carbonatite of Cretaceous age has intermittently intruded the eastern and northern margins of the Chacocoma Granite. The south-western corner of licence 1119L is underlain by 12 square kilometres of Lower Karoo lithologies.
Previous exploration has targeted mineralisation within the carbonatite. During the 1980's, the Geological Institute of Belgrade (GIB) conducted exploratory works at the Monte Muande magnetite/phosphorus deposit. 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.
Regrettably sampling of the first phase of drilling and trenching was not systematic. The available analytical results do, however, demonstrate the potential of the deposit. A complete listing of significant intercepts from both drilling and trenching is tabulated below (please note that this is historical data and the Company cannot yet confirm its veracity). Iron grades are generally higher, and phosphorus lower, in trench samples than in the drill core. This may be a function of the near surface chemical weathering of the marble host rock or reflect different sampling techniques.
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. 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 in late 2007, returning a best intercept of 6.40m @ 2.01g/t Au from 46.10m (0.5g/t Au cut-off).
Mavuzi Resources completed a preliminary review of the coal potential of the 12 square kilometres of Lower Karoo lithologies underlying the southwestern corner of 1119L. Field work identified carbonaceous rich units exposed in river banks along the Mufa River. No further work was completed.
Forward Programme 2011
The Company expects to complete the compilation of historical work this week at which time it will hand over the data pack to internationally respected consultants Coffey Mining Pty Ltd ('Coffey'). Coffey has been commissioned to review the data and associated reports to estimate a magnetite/phosphorus Exploration Target for the Monte Muande area. Coffey's metallurgical team will also make preliminary investigations into potential mineral processing flow sheets to generate discrete magnetite and phosphate concentrate products.
Baobab has scheduled an initial phase 2,000m of diamond drilling at the Monte Muande deposit to commence in Q2 2011.
Baobab has also commissioned Mozambique consultants Gondwana Consultorias Lda to complete a detailed field assessment of the coal potential underlying 1119L.
Details of North River Joint Venture
North River Resources plc is an AIM listed multi commodity resource development company, focused 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 45% owned by AIM listed Kalahari Minerals plc (LON:KAH).
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 currently underway with drilling scheduled for Q2 2011.
The complete Baobab Resources plc announcement including figures and maps, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/65103-BaobabPressRelease20110128_Muande_final.pdf
About Baobab Resources plc
Baobab Resources plc (LON:BAO) is a Mozambican-focused explorer with a large landholding in the central north of the country. The company's flagship project is the Tete iron ore deposit.
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