Baobab Resources Plc the iron ore base and precious metals explorer with a portfolio of exploration projects in Mozambique announced that the results of the resource estimation at the Ruoni Flats block of the Tenge/Ruoni prospect, 1 of six resource blocks in at its 85% owned Tete Pig Iron, vanadium and titanium Project.
Highlights
1. Tete global resource base has expanded to 665 million tonne over 490 million tonne of which is defined at Tenge/Ruoni, firmly establishing the prospect area as a standalone asset.
2. The Ruoni Flats 183 million tonne Inferred Resource reports a head grade of 37% Fe and an average concentrate grade of 61.4% Fe, 0.9% V2O5 and 9.4% TiO2 at a mass recovery of 41.7%.
3. The 2012 drilling season has been completed for an aggregate total of 16,300 meter. Program included resource upgrade drilling at the Ruoni North, Ruoni South and Tenge resource blocks. Updated Indicated Resource statements are expected to be finalized during January 2013.
4. The Tete Pig Iron Pre Feasibility Study is on schedule for completion this year, with results announced in early February 2013.
Mr Ben James MD of Baobab's said that 'The Company is very pleased to present the Ruoni Flats resource statement. Baobab is now able to realistically consider significantly larger production options at Tete, with the expanded 490 million tonne Tenge/Ruoni resource base sufficient on its own to underpin a 4 million tonne per annum Pig Iron operation over an impressive life of mine of c.35 years. At 4 million tonne per annum, the project would become the world's single largest producer of Pig Iron.
Importantly, the 490 million tonne Tenge/Ruoni footprint is just 3 kilometer, with much of the Tenge block forming significant topographic relief. The resultant short haulage distances and low stripping ratios will have a tangible impact on mining costs. Baobab's management team looks forward to presenting the results of pit optimization and mine scheduling studies, along with other aspects of the finalized Pre Feasibility Study, in early 2013.