Baobab Resources (AIM: BAO) said the last one of the three diamond drill holes of the 2009 field season returned the best results to date, intersecting a Fe (iron) grade of 64.5% over 46 metres to beat the previous two holes, which produced Fe grades of up to 62.9%.
Intercepts from the third hole, TDH0017, have also returned grades of 0.66% V2O5 (vanadium) and 6.23% TiO2 (titanium) with a 36.6% mass recovery.
The TDH0016 hole intercepted intervals of 14.7 metres grading 60.0% Fe, 0.65% V2O5 and 9.05%TiO2 from 24.5 metres with a 28.3% mass recovery, 27.0 metres at 61.1% Fe, 0.72% V2O5 and 7.15% TiO2 from 117.5 metres with a 22.7% mass recovery and 7.5 metres at 57.1% Fe, 0.49% V2O5 and 14.57% TiO2 from 179.0 metres with a 59.8% mass recovery. Concentrate intercepts from the TDH0018 hole included 55.0 metres at 62.9% Fe, 0.73% V2O5, 5.07% TiO2 from 25.0 metres with a23.3% mass recovery.
The drilling programme has intersected broad zones of cumulate-style mineralisation similar to that of the 47.7m Mt (million tonnes) inferred resource at Chitongue Grande, located 7 km (kilometres) to the north.
“Taking into account width, grade and mass recovery, the TDH0017 result is quite probably our best to date...we look forward to opening the 2010 drill season next month on the Massamba Group trend and will focus initially on the South Zone prospect before moving north into the Chimbala area,” said Managing Director of Baobab Ben James.
The 2010 programme aims to improve the company’s confidence in the 400 to 700 Mt (million tonnes) exploration target and to clarify geological domains for continued metallurgical test work.
The South Zone prospect, comprising the southern 2.5 km of the Massamba Group trend, was first identified by the company in 2008.
The three holes were targeting the downdip extensions to outcrops of the massive intrusive style mineralisation. The project contains two areas of magnetite-ilmenite mineralisation, the Singore area to the south and the Massamba Group in the north, where the group has been focusing its exploration activities after their commencement in mid 2008. No previous exploration had been carried out in the area prior to the three holes that have now been completed by Baobab.
The International Finance Corporation has earned a 15% interest in the Tete project after entering a strategic partnership with Baobab in January 2009.
Shares in the company rose 4.5% on the news.
Disclosure: The author holds no positions in the company