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

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


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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