ABN Newswire

Baobab Resources plc (LON:BAO) Over 200 MT Upgraded to JORC Indicated Category at Tete

newsroom@abnnewswire.net — Wed, 3 Apr 2013 22:52:27 GMT

Baobab Resources Plc (LON:BAO) is a Mozambique focused mineral resource development company. Further to the RNS dated 21 February 2013, the Company is pleased to present final results of the resource up-grade at the Tenge/Ruoni prospect at its 85% owned Tete pig iron and ferro-vanadium project (the 'Tete Project') in which International Finance Corporation ('IFC') hold a 15% participatory interest.

HIGHLIGHTS

- International independent consultants Coffey Mining Limited have finalised a JORC resource estimate for the Tenge/Ruoni prospect based on the completed results of the 2012 infill drilling programme.

- The Tete Project's global resource base now reports 727Mt ('inferred' and 'indicated'), 553Mt of which is defined underlying the 2.5km2 footprint of the Tenge/Ruoni prospect (see Table 1).

- 217Mt has been upgraded to an 'indicated' category at Tenge/Ruoni, representing an encouraging conversion ratio from Inferred to Indicated of 73% at Tenge and 88% at Ruoni North from the original March 2012 inferred resource estimates.

- The Definitive Feasibility Study ('DFS') drilling programme commenced at Tenge on 2 February 2013. The objective of the programme is to elevate resources that lie within the Stage 1 pit shell to a 'measured' category, as well as collect representative material for the next round of metallurgical test work.

- Following on from the successful completion of a 1Mtpa Pre-Feasibility Study ('PFS') which delivered a pre-tax NPV10 of US$1.3bn (refer to RNS dated 28 March 2013), Baobab is now assessing a range of strategic corporate opportunities. To aid in the evaluation and implementation of the options, the Company is enlisting the services of a corporate advisor. The selection process is nearing completion and the successful candidate will be announced shortly.

Commenting today, Ben James, Baobab's Managing Director, said: 'this latest update further consolidates the resource base on which to build a large-scale operation. The excellent conversion rate from 'inferred' to 'indicated' classifications in the areas infill drilled during 2012 further de-risks the technical elements of the project.

'With the base case PFS complete and results of increased production models due in shortly, Baobab is now in a position to accelerate the appraisal and execution of corporate strategies that will ensure the successful development of the Tete project. These initiatives will run in parallel with the continued technical initiatives as the Company maintains momentum into the DFS.'

For the full report, please visit:
http://media.abnnewswire.net/media/en/docs/74920-BAO20130303.pdf

Baobab Resources plc
Ben James
T: +258-21-415-200
WWW: www.baobabresources.com

Baobab Resources Plc (LON:BAO) Audio Media Interview

newsroom@abnnewswire.net — Wed, 3 Apr 2013 08:34:25 GMT

A BRR Media interview with Baobab Resources Limited (LON:BAO) Managing Director, Ben James, discussing the results of the recently announced Tete Pre-Feasibility Study may be accessed here:
http://baobabresources.com/webcasts.

Baobab Resources plc
Ben James
T: +258-21-415-200
WWW: www.baobabresources.com

Baobab Resources Plc (LON:BAO) Tete Pre-Feasibility Study Returns Positive Result - Robust Economics: NPV US$1.3 Billion

newsroom@abnnewswire.net — Thu, 28 Mar 2013 12:51:28 GMT

Baobab Resources Plc (LON:BAO), the Mozambique focused mineral resource development company, is pleased to present a summary of the Pre-Feasibility Study (the 'Study' or 'PFS') assessing the economic viability of its 85% owned Tete pig iron and ferro-vanadium project (the 'Tete Project') in which International Finance Corporation ('IFC') holds a 15% participatory interest.

HIGHLIGHTS
- PFS confirms the Tete Project as a strategic asset of global significance based on:
- Long-term mine life: 1Mtpa pig iron production for 37 years exploits just 15% of the current global resource (as tabled in Annexure 2).
- Production of high-demand, low-impurity commodities at lowest quartile operating costs, maximising the Project's unique access to low-cost raw materials.
- Modular ability to ramp up production beyond 1Mtpa mitigates financial exposure and allows project scaling.
- Base case scenario of 1Mtpa pig iron production estimates a capital expenditure of US$1.14bn and delivers strong project economics, with a pre-tax NPV10 of US$1.3bn, pre-tax IRR of 22% and a payback period of 4-5 years.
- The Study, completed by independent consultants, assessed low risk, tried and tested beneficiation, reduction and smelting technologies used in similar, commercial operations worldwide.
- Very competitive operating cost of US$225/t (FOB) pig iron firmly establishes the project as one of the lowest cost producers globally.
- Co-production of c.3,000tpa ferro-vanadium alloy will deliver by-product revenues in the order of US$75m (gross) per annum, which corresponds to 14% of total revenue and is equivalent to a by-product credit of c.US$65/t pig iron.
- The Government of Mozambique offers various investment incentives for major industrial projects, with more favourable taxation terms for projects that add a significant amount of value in-country, create local employment and are export orientated. The completion of the PFS now enables the Company to enter into negotiations as to the structure of the tax treatment for the Tete Project with reference to established precedent agreements. It is for these reasons that the Company has not presented 'after-tax' figures.

Commenting today, Ben James, Baobab's Managing Director, said: 'with the results of this PFS we now have independent confirmation of the Tete Project's viability, and more importantly, its compelling economics. This marks another significant milestone on the Company's way to becoming not only the first iron producer in Mozambique, but also one of the lowest cost producers of pig iron globally. In addition, to be able to do this using tried and tested technology and modular plant equipment allows us to keep the Project as straight-forward as possible whilst limiting initial financial exposure. In short, this PFS confirms our objectives at Tete of adding value on-site, maximising margin and minimising risk.

'While waiting for these results to be finalised and with funding in place the Board elected to maintain forward momentum and work has already commenced on the Project's Definitive Feasibility Study. We look forward to keeping shareholders updated with progress.'

PRE-FEASIBILITY STUDY: EXECUTIVE SUMMARY

The Pre-Feasibility Study was completed by a leading group of internationally respected consulting firms and individuals including Coffey Mining Limited, John Clout and Associates, ProMet Engineers, SNC Lavalin, Coffey Environment and Ferrum Consultants. Equipment suppliers were also involved in the design and costing of the pyro-metallurgical flow sheets. Analysis was largely completed at the Amdel, ALS Chemex and CSIRO laboratories in Australia. The Study has been completed to a PFS-level of accuracy and is based on a number of process engineering initiatives including raw materials analysis, bench scale test work and the process comparison with similar, existing pig iron production plants.

The project is located in the Tete province of Mozambique, a country richly endowed with both mineral and gas resources. The province hosts some of the largest undeveloped coal reserves remaining on Earth and, with estimates pointing towards the area having the potential to produce up to 20% of the world's seaborne coking coal within the next decade, is fast-tracking to become a mining and industrial hub of global significance.

Since commencing exploration in 2008, the Company has defined a 725Mt global resource inventory (573Mt inferred and 152Mt indicated, estimated and classified under the guidelines of the JORC (2004) Code), 550Mt of which underlies the very compact 2.5km2 footprint of the Tenge/Ruoni prospect (refer to Annexure 2 and RNS dated 21 February 2013 for details).

Immediately south of, and sharing the Company's licence boundaries, are c.15Bt of coking and thermal coal resources being brought into production by two of the world's largest mining companies, Rio Tinto and Vale, along with tier one steel producers, Tata Steel, Nippon Steel, Jindal Steel and POSCO. Other operators in the area include AIM listed companies Beacon Hill Resources plc, Ncondezi Coal Company plc and Eurasian Natural Resources Corporation plc (ENRC).

The Tete province is also home to southern Africa's largest source of hydro-electric power, the 2,075 megawatt Cahora Bassa dam. Additional hydro-power schemes, currently in the advanced planning stages, will see power production more than double once implemented. Thermal power production is also likely in the near future.

The Project stands to benefit from the significant infrastructure investments already being made in the region. The Rail corridors linking the Tete province with the coast are rapidly being refurbished and expanded, as are the ports of Beira and Nacala. The Company is confident that it will be able to secure allocation well in advance of estimated production time lines.

It is the project's strategic access to the requisite iron and steel making commodities of iron ore, coal, power and water that differentiates Baobab's project from any other in Africa, if not globally, and presents an unique opportunity to add substantial value on site through the mine-mouth smelting of a high value pig iron product.

Pig iron is classified as a raw material derived from the intermediate smelting of iron ore. It is used alongside scrap iron in electric arc furnaces (EAFs) to generate crude and finished steel products. The global consumption of pig iron is estimated at c.70Mtpa (including the domestic Chinese market), complementing a c.350Mt annual consumption of scrap iron.

Due to its consistent chemical composition and density, pig iron is considered a superior product and typically trades at a premium to scrap iron. Pig iron prices vary between markets with North America typically reporting the lowest prices and Asia, in particular China, the highest. Current pricing ranges from $425/t to $500/t.

The market fundamentals for pig iron are robust and supported to a large extent by the on-going development of the BRIC (Brazil, Russia, India and China) economies as well as sub-Saharan Africa where regional demand for construction steel continues to grow on the back of rapid urbanisation and the commissioning of large scale infrastructure projects such Mozambique's emerging offshore gas industry. Other key drivers to the continued growth of the pig iron sector include the maturing of China's scrap iron market and a general decline in the quality of scrap iron elsewhere in the world.

The Pre-Feasibility Study indicates that there is the potential to establish an economically viable operation at the Tete Project. The production of pig iron was evaluated using tried and tested beneficiation, reduction and smelting technologies, which are well established in similar commercial operations worldwide, including South Africa and New Zealand. The base case scenario of 1 million tonnes per annum ('Mtpa') pig iron production estimates a capital expenditure of US$1.14bn and delivers strong project economics, with pre-tax NPV10 of USD1.3bn, a pre-tax IRR of 22% and a payback period of 4-5 years. A summary of the base case model is presented in Table 1.

The Government of Mozambique offers various investment incentives for major industrial projects, with more favourable taxation terms for projects that add a significant amount of value in-country, create local employment and are export orientated. For instance, BHP Billiton's Mozal aluminium smelter and Kenmare's Moma mineral sands project have both been granted Industrial Free Zone (IFZ) status which makes them exempt from corporation tax, import duties, export duties and Value Added Tax while requiring payment of a 1% turnover tax. The completion of the PFS now enables the Company to enter into discussions with the Government of Mozambique as to the structure of the tax regime for the Tete Project. It is for these reasons that the Company has not presented 'after tax' figures.

-----------------------------------------------------------
Table 1	 	 	 
-----------------------------------------------------------
Summary - Base Case Model - 1Mtpa	 	 	 
-----------------------------------------------------------		
NPV @ 10% (Pre - Tax)           US$M       1,261
EBITDA (LOM)                    US$M      10,376
EBITDA (Avg. p.a, steady state) US$M p.a     280
-----------------------------------------------------------
1Mtpa with 37 years LOM         Unit            Value
-----------------------------------------------------------			
Key Parameters

Resource Base                   Mt              117
Life Of Mine                    Years           37
Pig Iron production  (LOM)      Mt              37
FerroVanadium Production (LOM)  Kt              119
Royalty (1)                     %               3%
-----------------------------------------------------------
Commodity Prices

Pig Iron                        US$/t           450
Ferro-vanadium                  US$/t           25,000
-----------------------------------------------------------
Unit Operating Costs (FOB)	 	 	 

Pig Iron (Pre Credit)           US$/t pig iron  225
Ferro-vanadium                  US$/t pig iron  4,652
Pig Iron (Post Credit)          US$/t pig iron  159
-----------------------------------------------------------			
Capital Expenditure

Upfront:
Capex - Pig Iron Plant          US$M            1,010
Capex - FerroVanadium Plant     US$M            133
Total Upfront Capex             US$M            1,143

Sustaining Capital
First 5 years(2)                %               2.5%
Sustaining Capital
 > 5Years(2)                    %               5.0%
------------------------------------------------------------
(1) Model assumes 5 year grace period from start of production		
(2) Calculated on mechanical plant and equipment cost 
(c. 40% of upfront Capex)

The pyro-metallurgical test work completed during the PFS not only provided physical and empirical evidence that a high-quality, low-impurity pig iron could be generated through the direct reduction and smelting of concentrates derived from the Project's iron ore, but also demonstrated the viability of the locally produced middling by-product coal as an agent in the reduction process. Please review RNS dated 4 March 2013 for further details.

As this middling coal is essentially a waste by-product, the Company will be able to negotiate a very competitive mine-gate rate which is one of the key drivers, along with the ability to co-generate a significant power credit and a very low stripping ratio averaging just 0.4 over the first c.10 years of mining, that establishes the Tete project as potentially one of the lowest cost pig iron producers globally. The PFS estimate of a pre-credits free on board ('FOB') cost of production of US$225/t pig iron and post by-product credit cost of production of US$159/t is considered to be very competitive, particularly when compared to the estimated FOB operating cost of $385/t of Brazilian operations. Operations in Russia and the Ukraine are thought to have similar production costs to Brazil, while domestic Chinese operating costs are thought to be substantially higher.

The mineralisation at Tete includes significant amounts of vanadium which will be extracted as a vanadium slag during the smelting process. Further refining of the vanadium slag results in the production of ferro-vanadium alloy, currently sold at price levels of around US$25,000/t. The operating cost to upgrading the vanadium slag to ferro-vanadium alloy is US$4,650/t, less than a third of the operating cost of a dedicated ferro-vanadium production plant. At 1Mtpa pig iron production, the operation would co-produce c.3,000tpa ferro-vanadium alloy, delivering by-product revenues in the order of US$75m (gross) per annum, which corresponds to 14% of total revenue and is equivalent to a by-product credit of c.US$65/t pig iron.

Titanium is successfully separated from the iron during the smelting process and recovered as a titanium slag by-product grading approximately 30% TiO2. The slag is likely to be of commercial use only as a low cost material for road construction or as an extender in the cement industry and has limited impact on the financial model.

The Pre-Feasibility Study modelled 1Mtpa pig iron production over a 37-year mine life which resulted in the development of 110Mt, just 15% of the total 725Mt resource, clearly highlighting the opportunity for expanded production scenarios. The modular character of the plant equipment supports a staged development model, thereby limiting initial financial exposure. Scoping-level assessments of 2Mtpa and 4Mtpa operations are on going.

To view full tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/74901-lon-bao-20130328.pdf

Baobab Resources plc
Ben James
T: +258-21-415-200
WWW: www.baobabresources.com

Baobab Resources plc (LON:BAO) Pyro-Metallurgical Testwork Produces Low Impurity Pig Iron

newsroom@abnnewswire.net — Mon, 4 Mar 2013 21:31:30 GMT

Baobab Resources Plc (LON:BAO) the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to present the results of pyro-metallurgical test work at its 85% owned Tete pig iron, vanadium and titanium project (the "Tete Project") in which International Finance Corporation ('IFC') hold a 15% participatory interest.

HIGHLIGHTS

- Bench-scale pyro-metallurgical test work has confirmed the ability to produce a low impurity pig iron product using Baobab's iron ore and local Mozambique thermal coal.
- The reduction and smelting test work has been conducted using coarse concentrates derived from the Tenge resource block at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) laboratories in Australia.
- Reduction test work using a rotary kiln simulator has returned very promising results with in excess of 70% metallisation being achieved after a short residence time using locally sourced thermal coal as a reductive agent.
- Samples from the rotary kiln experiments were inductively smelted in a crucible to produce a clean disc of pig iron reporting 97% Fe (at 1.8% C) and containing a very low level of titanium of 0.002%.

Commenting today, Ben James, Baobab's Managing Director, said: 'the results of the pyro-metallurgical test work mark a major milestone for the project. Two critical questions have been answered: will local thermal coals work in the reduction process and will the titanium separate from the iron when smelted? In both cases the answer is a resounding yes. We now possess very clear physical and empirical evidence to support the Company's conviction that we can exploit the project's unique access to low cost thermal coal at the licence boundary together with Baobab's iron ore to produce a high quality / low impurity pig iron at the bottom of the cost curve.'

PYRO-METALLURGICAL TEST WORK

SAMPLES SELECTED

Tests were conducted at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) laboratories in Melbourne, Australia, using -6.3 and -3.35 mm dry cobbed concentrates derived from the Tenge iron deposit. The -0.150 mm undersize fraction was removed from the concentrate samples prior to reduction testing. Please refer to RNS dated 16 July 2012 for full details of the results of the beneficiation test work programme.

50kg samples of local thermal coal were collected from two commercial operations in the immediate Tete area. The coal samples represent a middling by-product that is produced during the coal washing process and, not currently considered viable for export, is being stockpiled.

REDUCTION TEST RESULTS

Initial reduction tests were conducted using a bench-scale rotary kiln simulator that has been calibrated with ilmenite reduction kilns at operations in Western Australia. The aim of the test work was to increase the metallic iron content of the Tenge concentrates prior to direct charging to an electric arc furnace that is designed to produce pig iron and a TiO2-rich slag. Baobab is considering a rotary kiln as a reactor and using a local thermal coal as the reductive agent. Reductive roasting tests on the Tenge -6.3 and -3.35 mm dry cobbed concentrates at 1100°C achieved in excess of 70% metallisation after just 30 minutes residence in the kiln. Coal addition rates, temperatures and reduction times were established to simulate those used by current pig iron producers utilising titanomagnetite feedstock.

SMELTING TEST RESULTS

An inductively heated furnace was used to confirm the ability to produce pig iron from the reduced iron samples and determine the quality of the pig iron. The samples from the reduction roasting experiments were inductively heated and melted in a crucible to produce a clean pig iron disc with little slag.

The test was un-fluxed and therefore contains some Sulphur and Phosphorus that would be otherwise expected to be removed with the slag and with secondary metallurgical treatment in the ladle after tapping. Similarly much of the Vanadium would be removed from the hot metal and recovered as a Vanadium-rich slag prior to final pig iron production. The low Carbon content of the pig iron is not representative of the Submerged Arc Furnace product which is expected to be in the order of 3.5%.

The chemical analysis of the iron disc in the table confirms that the pig iron after full treatment is likely to meet a typical pig iron specification (EN 10 001:1990; GOST 805-95) for Electric Arc Furnace (EAF) steelmaking. Of particular importance is the very low level of Titanium (Ti), demonstrating that the process is able to remove critical deleterious components from the original resource material.

------------------------------------------------------------------------------
Product             Assays (%)
------------------------------------------------------------------------------
                    Fe     C    S     P     Ti    V     Cu    Ni    Co    Cr
------------------------------------------------------------------------------
Pig Iron 
(melt -1 iron [A]) 97.0#1 1.76 0.200 0.161 0.002 0.102 0.037 0.209 0.045 0.175
------------------------------------------------------------------------------
#1 - Fe approximate by difference, Carbon and Sulphur analysis 
by LECO and other analytes by ICP OES.

View images by visiting:
http://media.abnnewswire.net/media/en/docs/74769-BAO_AIM_20130304.pdf

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com

Baobab Resources Plc (LON:BAO) Operational Update: Tete Global Inventory Exceeds 720 Million Tonnes

newsroom@abnnewswire.net — Fri, 22 Feb 2013 12:15:08 GMT

Baobab Resources Plc (LON:BAO) the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to present the results of the resource re-estimation and up-grade at the Tenge/Ruoni prospect at its 85% owned Tete pig iron, vanadium and titanium project (the "Tete Project") in which International Finance Corporation ('IFC') hold a 15% participatory interest.

Commenting today, Ben James, Baobab's Managing Director, said: 'The Company is very pleased to announce the expansion of the global resource inventory to 725Mt. The Tenge/Ruoni prospect's compact 2.5 square kilometre footprint now hosts over half a billion tonnes of iron ore grading 36.4% Fe, sufficient to underpin a large scale, vertically integrated pig iron operation over a significant life of mine. Of particular encouragement is the high conversion rate of 85% from inferred to indicated mineral resources on the Ruoni North resource and the plus 70Mt defined so far at Tenge.'
TENGE/RUONI RESOURCE STATEMENT

Tenge/Ruoni is the easternmost prospect area of the Massamba Group, Tete Project. Mineralisation in the area has been synformally folded with the fold hinge plunging gently to the west-northwest. The northern and southern limbs of the fold comprise the Ruoni North and Ruoni South resource blocks, while the outcropping fold hinge comprises the Tenge resource block to the east. The buried central portion of the fold comprises the Ruoni Flats resource block.

Internationally respected consultant, Coffey Mining Limited ('Coffey'), has revised the resource estimates for the Tenge/Ruoni resource blocks based on the infill drilling programmes completed at Ruoni North and portions of the Tenge block during 2012. An additional 59Mt was classified in the inferred resource category across the prospect. In addition, a total of 152.3Mt was up-graded to an indicated resource category: 79.8Mt of the original 93.4Mt Ruoni North resource was upgraded, representing an 85% conversion, and 72.6Mt was upgraded to an Indicated Resource category at the Tenge resource block with an additional seven drill holes still to be analysed. Infill drilling during 2012 was also completed at the Ruoni South resource block, however results are still to be returned from the laboratory.

Coffey's estimates of inferred and indicated mineral resources, including the South Zone estimate (announced on 30 August 2011) and Chitongue Grande (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 estimation parameters are presented as Annexure 1.

Coffey Mining has estimated the expected average concentrate characteristics for the mineralised material for the combined Tenge/Ruoni resource as: 59.7% Fe, 0.8% V2O5, 10.5% TiO2, 0.9% SiO2, 3.2% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 42.9%. A detailed summary of the expected concentrate grades of the individual ore domains is tabulated in Annexure 1.

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. A three-dimensional block model was generated for the Tenge deposit to enable grade estimation. Coffey Mining has based its grade interpolation on Ordinary Kriging. Whole rock and concentrate grades were interpolated based on 4m composite samples using domain control for both composite and block selections applying hard boundaries between the zones. A service variable approach to the estimation of block concentrate grades required to account for the variation in percent recovery weight. The concentrate grades (Fe, V2O5, TiO2, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, and S) were then back calculated from these estimates. Ordinary Kriging was also used to obtain estimates of DTR and service variables for Ruoni South. For the concentrate grades of all other resource blocks, a similar approach was adopted. However, insufficient DTR test work resulted in a lower confidence in the estimate, precluding their classification.

The Company owns 85% of the Tete Project after IFC acquired a 15% participatory interest in the project by way of an unincorporated joint venture in 2009. Please refer to RNS dated 17 January 2009 for further details of the joint venture.

View the complete Baobab Resources announcement at the link below:
http://www.abnnewswire.net/lnk/PMOT28D0

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com

Baobab Resources Plc (LON:BAO) Operational Update: Tete Pre-Feasibility Study

newsroom@abnnewswire.net — Tue, 19 Feb 2013 16:40:58 GMT

Baobab Resources Plc (LON:BAO) the Mozambique resource development company, provides the following operational update in relation to the Pre-Feasibility Study (PFS) being completed at its 85% owned Tete Pig Iron, vanadium and titanium Project. IFC (International Finance Corporation) hold a 15% participatory interest.

Most components of the PFS are now finalised and international consultants, Coffey Mining Ltd, have commenced summary documentation. The Company awaits the results of an equipment procurement study across suppliers globally to finalise its capital expenditure (capex) estimate which is expected to be ready in a few weeks. With the numbers already available to it the Company is sufficiently confident of the outcome for the Board to have authorised expenditure to commence work on time critical components of the DFS to ensure that momentum is maintained going forward.

SUMMARY

Most study components have been peer reviewed and finalised with summary documentation underway:

- Resource upgrade estimations have been completed at the Ruoni North and Tenge blocks, the results of which will be announced shortly. The Ruoni South re-estimation is currently underway.

- The Definitive Feasibility Study (DFS) drilling programme commenced at Tenge on 2 February 2013. The objective of the programme is to elevate resources to a 'measured' category as well as collect representative material for the next round of metallurgical test work.

- Beneficiation and pyro-metallurgical studies have been largely completed, including side studies into the treatment and upgrading of vanadium and titanium by-products. Bench scale reduction and smelting test work, using concentrates derived from Tenge iron ore and local thermal coal products, is ongoing at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) laboratories in Australia.

- The Environmental Impact Assessment (EIA) scoping study and public consultation process is complete, with the environmental licence application being lodged shortly. Wet season baseline studies, which are fundamental to the EIA work programme going forward, are scheduled for March.

- Infrastructure, freight, marketing and mining studies, including mine scheduling, pit optimisation, geotechnical and hydrogeological studies, have been completed.

Commenting today, Ben James, Baobab's Managing Director, said: 'These are exciting times for the Company. The majority of the Pre-Feasibility Study is now complete and the Company has commenced work on time critical components of the DFS to ensure that momentum is maintained going forward. The full PFS will be released as soon as the Company has assimilated the results of the equipment procurement study into its capex model".

View the Baobab Resources announcement at the link below:
http://media.abnnewswire.net/media/en/docs/74696-BAORNS190213.pdf

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com

Baobab Resources PLC (LON:BAO) Exercise of Warrants and Appointment of Non-Executive Director

newsroom@abnnewswire.net — Wed, 30 Jan 2013 22:05:00 GMT

Baobab Resources plc (LON:BAO), the iron, base and precious metals explorer with a portfolio of mineral projects in Mozambique, is pleased to report that further to the announcement of 6 July 2012, Redbird Investments Ltd. ('Redbird'), a fully owned investment vehicle of African Minerals Exploration & Development SICAR SCA ('AMED' or 'the Fund') has exercised the 25,000,000 warrants over the Company's Ordinary Shares of 1p each ("Ordinary Shares") at an exercise price of 12p per share that were granted as part of the Fund's initial investment of GBP4 million in Baobab. By exercising these warrants the Fund's total investment in the Company has increased to GBP7 million.

Application will be made to the London Stock Exchange for the 25,000,000 new Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will become effective and that trading will commence on 5 February 2013. These shares will rank equally in all respects with the existing issued Ordinary Shares in the Company. The total issued share capital of Baobab following this allotment will be 298,373,426 Ordinary Shares and Redbird will hold 80,693,158 Ordinary Shares representing 27.04% of the Company's total voting rights.

The Fund is a substantial shareholder in the Company. Therefore, the exercise of the warrants constitutes a related party transaction under AIM Rule 13. The Directors of the Company excluding David Twist (who is a nominee of the Fund) consider, after consultation with the Company's Nominated Adviser, that the terms under which the Fund has exercised the warrants are fair and reasonable in so far as its shareholders are concerned.

As mentioned in the announcement dated 6 July 2012, the Fund has the right to appoint a second nominee to the Company's board (in addition to Dr. David Twist) upon the exercise of the 25,000,000 warrants. The Company is therefore pleased to announce the appointment of Mr. Carlo Baravalle as a Non-Executive Director to the Company with immediate effect.

Mr. Carlo Baravalle (aged 52) holds an MBA from INSEAD and brings a wealth of corporate finance experience to the board. Carlo spent several years in strategic consulting, working on assignments for many large French conglomerates between Paris and the USA, before entering the telecoms industry, firstly with BT and then as a Director of the Corporate Finance Telecoms team at Warburg, followed by a senior global position at Lucent Technologies. Carlo first entered the Private Equity sector by taking a senior assignment with a company owned by Apax Partners, and later as Senior Vice-President for LCC, a telecoms engineering company initially invested in by the Carlyle Group. In 2007 Carlo launched a c.$150 million private equity fund of funds aimed mainly at Italian institutional investors that successfully invested in mid-caps, restructuring funds and co-investments globally. In 2012 he co-founded AMED with Rudolph de Bruin and David Twist. The Fund is currently investing in mineral exploration and development opportunities, predominantly in Africa.

Commenting today, Jeremy Dowler, Baobab's Chairman, said: 'We are delighted to welcome Carlo to the board and his considerable experience in senior roles within international corporations together with his expertise in raising funds in international markets will be of great benefit in the future.

'The funds raised through this exercise of warrants ahead of the expiry date is a further vote of confidence in the Company and will greatly assist in the final planning of the Definitive Feasibility Study. This will commence immediately after the publication of the Pre-Feasibility study which is now due for release in the second half of February 2013.'

Carlo Baravalle currently holds, and has held (including all appointments during the five years preceding the date of this announcement), the following directorships and partnerships, other than of the Company:

Current Directorships/Partnerships
(in the last 5 years)
Network Capital Partners Srl
Bames Partners LLP
AMED GP Sarl
African Nickel (BVI) Ltd
Kokoya Iron Ltd LLC Pakistan Private Ltd.

Past Directorships/Partnership
LLC United Kingdom, Ltd.
LLC Deployment Services UK, Ltd.
LLC Southern Europe Holdings
LLC Italia, Srl
LLC Wireless Communications Espana, SA
Detron LLC Network Services, B.V.
LLC International GmbH
LLC Middle East Holdings
LLC Middle East FZ - LLC
LLC Detron Belgium NV
LLC Projects BV
LLC Professionals BV
LLC Fixed BV
LLC UK - Saudi Branch
LLC UK - Spain Branch

Carlo Baravalle has no direct interest in the shares or options of Baobab but is a founding partner of the Fund, which through its investment vehicle Redbird Investments Ltd. holds 80,693,158 Ordinary Shares of 1 pence each representing 27.04% of Baobab's total voting rights.

There are no further disclosures to be made in relation to Carlo Baravalle under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.

View the release at:
http://media.abnnewswire.net/media/en/docs/74601-20130130-LON-BAO.pdf

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com

Baobab Resources Plc (LON:BAO) Ruoni Flats Resource Statement Pushes Global Inventory Beyond 650Mt

newsroom@abnnewswire.net — Mon, 3 Dec 2012 18:13:34 GMT

Baobab Resources Plc (LON:BAO) the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to present the results of the resource estimation at the Ruoni Flats block of the Tenge/Ruoni prospect, one of six resource blocks in at its 85% owned Tete Pig Iron, vanadium and titanium Project (IFC (International Finance Corporation) hold a 15% participatory interest).

HIGHLIGHTS
- Tete global resource base has expanded to 665Mt (JORC), over 490Mt of which is defined at Tenge/Ruoni, firmly establishing the prospect area as a standalone asset.
- The Ruoni Flats 183Mt 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%.
- The 2012 drilling season has been completed for an aggregate total of 16,300m. Programmes included resource upgrade drilling at the Ruoni North, Ruoni South and Tenge resource blocks. Updated Indicated Resource statements are expected to be finalised during January 2013.
- The Tete Pig Iron Pre-Feasibility Study (PFS) is on schedule for completion this year, with results announced in early February 2013.

Commenting today, Ben James, Baobab's Managing Director, said: '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 490Mt Tenge/Ruoni resource base sufficient on its own to underpin a 4Mtpa Pig Iron operation over an impressive life of mine of c.35 years. At 4Mtpa, the project would become the world's single largest producer of Pig Iron.

'Importantly, the 490Mt Tenge/Ruoni footprint is just 3km2, 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 optimisation and mine scheduling studies, along with other aspects of the finalised Pre-Feasibility Study, in early 2013.'

RUONI FLATS RESOURCE STATEMENT

Tenge/Ruoni is the easternmost prospect area of the Massamba Group, Tete Project. Mineralisation in the area has been synformally folded with the fold hinge plunging gently to the west-northwest. The northern and southern limbs of the fold comprise the Ruoni North and Ruoni South resource blocks, while the outcropping fold hinge comprises the Tenge resource block to the east. The buried central portion of the fold comprises the Ruoni Flats resource block.

Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at Ruoni Flats. 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), Ruoni South (announced on 7 December 2011) and Tenge (announced on 5 March 2012), are summarised below. All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on the Ruoni Flats estimation parameters are presented as Annexure 1.

Due to consistent sampling and analytical protocols, including routine Davis Tube Recovery (DTR) determinations, across mineralised and non-mineralise waste material at Ruoni Flats, Coffey Mining has been able to estimate the expected average concentrate characteristics for the mineralised material to an inferred Resource level of confidence: 61.4% Fe, 0.9% V2O5, 9.4% TiO2, 0.9% SiO2, 3.2% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 41.7%.

The expected weighted average concentrate characteristics for the global 665.4Mt Inferred Resource are in the order of 60.6% Fe, 0.8% V2O5, 10.4% TiO2, 1.0% SiO2, 3.3% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 38.1%.

View the full table of figures at:
http://media.abnnewswire.net/media/en/docs/74340-lon_bao_2012_12_03.pdf

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com

Baobab Resources Limited (LON:BAO) Signs a Joint Venture Agreement For Changara Iron Ore Project in Mozambique

newsroom@abnnewswire.net — Thu, 29 Nov 2012 10:52:10 GMT

Baobab Resources Limited (LON:BAO) through its wholly owned subsidiary Capitol Resources Limitada is pleased to announce that it has signed a Joint Venture Agreement with Australian exploration company Metals of Africa Limited (ASX:MTA) in relation to the Company's Changara Project in Tete Province, Mozambique.

MTA has entered into the JVA through its 100% subsidiary Afriminas Minerais Limitada. The JVA is conditional upon MTA receiving approval from shareholders at a meeting of Shareholders that will be convened shortly.

HIGHLIGHTS
- Baobab's Changara Project exploration licences cover 525km2 and are contiguous with Metals of Africa's 825km2 Rio Mazoe Project tenure.
- Combined, the two project areas control the entire extent of the lower Proterozoic Rushinga Formation, considered highly prospective for Broken Hill Type base metal and manganese mineralisation.
- Metals of Africa is earning into the Company's Changara Project via an unincorporated Joint Venture Agreement. The JVA has a four year, three-stage investment structure:
- 2-stage investment of US$750,000 to earn a 55% interest in the Project.
- Option to fund a third stage of US$1.2m to earn 80% total interest in the Project.
- Baobab has the option to co-fund the third stage work programme on a pro-rata basis to maintain its 45% interest in the Project.
- The Joint Venture will ensure the acceleration of exploration in the highly prospective Changara Project where previous work carried out by Baobab has identified numerous lead, zinc, silver and manganese targets.

Commenting today, Ben James, Baobab's Managing Director, said: 'By combining Baobab's and Metals of Africa's tenure in the Changara area, the entire extent of the highly prospective Rushinga belt can now be more efficiently and effectively explored. Metals of Africa's management team has extensive corporate and technical operating experience in southern Africa and we look forward to working with them in developing this exciting corner of Mozambique.

'The joint venture structure allows Baobab to retain a significant interest in the Changara Project going forward and also enables the Company consolidate its efforts on the Tete Pig Iron Project where the Pre-Feasibility Study is nearing conclusion.'

View the full announcement including tables and charts at:
http://media.abnnewswire.net/media/en/docs/74305-BAO_AIM_20121129.pdf

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com

Baobab Resources (LON:BAO) Positive Test Results Point to Simpler Processing Options and Capex Savings

newsroom@abnnewswire.net — Mon, 16 July 2012 16:00:10 GMT

Baobab Resources PLC (LON:BAO), the mineral exploration and development company with a portfolio of assets in Mozambique, is pleased to provide an update on the metallurgical test work which is being completed as part of the Pre-Feasibility Study (PFS) at its 85% owned Tete pig iron, vanadium and titanium project (IFC (International Finance Corporation) hold a 15% participatory interest).

HIGHLIGHTS

- Beneficiation test work recently completed on samples from the Tenge resource block demonstrates that the iron ore can be sufficiently upgraded to a concentrate of smelter-feed specification through low cost, coarse crushing (-3.35mm) and dry magnetic separation (a process known as 'coarse cobbing')at a very high mass recovery and a total iron yield of 63% and 84% respectively.

- The coarse cobbing concentrate specification is significantly coarser than the 150 micron grind size concentrate modelled in the 2011 Scoping Study which requires a ball mill and wet magnetic separation production circuit.

- The simplification of the beneficiation process, by eliminating the requirement for the milling, wet magnetic separation and agglomeration stages, will significantly reduce the initial capital expenditure burden.

- Preliminary mass balance calculations completed by engineering specialists, SNC Lavalin ('SNC'), conclude that smelting of the coarse cobbing concentrate can produce a high quality, ISO compliant pig iron as well as a valuable vanadium slag by-product. Further validation, incorporating local coal specifications, is on-going.

- SNC has commenced both beneficiation and iron making process engineering studies, the results of which will provide a more accurate estimate of capital and production costs.
Commenting today, Ben James, Baobab's Managing Director, said: "The key outcome of this test work is the potential to make significant savings in the start-up capex for the Tete Project. The ability to smelt a much coarser concentrate also allows for a less complex beneficiation and pyro-metallurgical route than originally contemplated. It is important to note that the preliminary specifications of the Project's potential pig iron product are well within the ISO standard for steel-making pig iron.

"With the recent GBGBP4m strategic investment made by the Africa Mining Exploration & Development fund (refer to RNS dated 6 July 2012), the Company is now fully funded and wholly committed to the rapid completion of the Pre-Feasibility Study."

PRE-FEASIBILITY STUDY & DRILLING UPDATE

In parallel with SNC Lavalin's work programmes, the Company is pleased to announce that good progress is being made on the environmental impact assessment and mining and geotechnical studies being managed by Coffey Environment and Coffey Mining respectively.

Drilling is also progressing well in the Tenge/Ruoni area with a total of 6,500m reverse circulation (RC) and 3,230m diamond drilling completed so far this season. The bulk of the drilling has been designed to upgrade resources at Ruoni North and Ruoni South as well as defining new resources within the Ruoni Flats area where Coffey Mining estimated an Exploration Target of between 120m and 260m (please refer to RNS dated 29 March 2012). Upgrade resource drilling in the Tenge resource block is expected to commence by the end of September
2012.

View the full announcement here:
http://media.abnnewswire.net/media/en/docs/73179-bao.pdf

Baobab Resources plc
T: +61-8-9430-7151
F: +61-8-9430-7664
WWW: www.baobabresources.com