Mozambique focused iron ore, base and precious metals explorer Baobab Resources (LON:BAO) said the first round of scout drilling at the Chimbala prospect at the Tete project in Mozambique intersected significant widths of magnetite-ilmenite mineralisation with the grades reaching 63.1% Fe (iron) and 0.72% vanadium.
Latest results returned intercepts of 31 metres at 63.1% Fe, 0.69% vanadium and 28.6% mass recovery including 20 metres at 62.8% Fe, 0.68% vanadium and 36% mass recovery, 30.5 metres at 60.2% Fe, 0.72% vanadium and 19.2% mass recovery including 15 metres at 61.3% Fe, 0.69% vanadium and 27.6% mass recovery and 34 metres at 57.4% Fe, 0.62% vanadium and 19.1% mass recovery including 8 metres at 60% Fe, 0.65% vanadium and 33.8% mass recovery.
“Drilling is progressing at pace and, considering the large area being explored at Chimbala, has returned encouraging and reasonably consistent results. The South Zone continues to impress and we are looking forward to commencing the reverse circulation programme in the near future,” said managing director Ben James.
The Chimbala prospect comprises the central portion of the Massamba Group trend and is underlain by a 3km long zone of strong aeromagnetic response. Limited historical exploration has taken place in the prospect area. The three diamond holes completed on the prospect in 2009 intersected significant magnetite-ilmenite mineralisation.
The South Zone prospect was first recognised by the company during its 2008 high resolution aeromagnetic survey, as a 2.5 km (kilometres) long north-south zone of high magnetic response immediately south of the known Massamba Group prospects. To date, six out of seven designated scout holes have been completed at the South Zone prospect, intersecting mineralisation of between 20 metres and 100 metres length.
A programme of approximately 7,000 metre RC drilling has been designed to step out from the scout drilling at South Zone and is on schedule to commence during August 2010.
The company is targeting the completion of a pre-feasibility study at Tete by mid-2011 and a bankable feasibility study by early 2013.
The Tete project contains two areas of magnetite-ilmenite mineralisation, the Massamba Group trend and the Singore area. The project covers 632 sq km (square kilometres), sharing boundaries with what Baobab called Vale and Riversdale’s “mega coal projects,” and having access low tariff hydro-electric power from existing and developing schemes on the Zambezi River.
Broker Astaire Securities welcomed the news, commenting that drilling was progressing at “pace with encouraging and reasonably consistent results,” given that a large area is being explored. The results fit with the broker’s expectations of significant thicknesses of magnetite-ilmenite mineralisation and the 400-700 Mt exploration target.