Baobab Resources intersects broad mineralisation zones at Tete iron-vanadium project, scout drilling campaign on track

Baobab Resources (AIM: BAO) said two of three diamond drill holes completed prior to the close of the 2009 field season at the South Zone prospect of the Tete magnetite-ilmenite project in Mozambique intersected broad zones of cumulate-style mineralisation similar to that of the 47.7 Mt (million tonnes) inferred resource at Chitongue Grande and massive magnetite-ilmenite intrusive dykes.

Significant concentrate intercepts from the TDH0016 hole included 14.7 metres grading 60.0% Fe (iron), 0.65% V2O5 (vanadium), 9.05%TiO2 (titanium) from 24.5 metres with a 28.3% mass recovery, 27.0 metres at 61.1% Fe, 0.72% V2O5, 7.15% TiO2 from 117.5 metres with a 22.7% mass recovery and 7.5 metres at 57.1% Fe, 0.49% V2O5, 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.

Results from the third hole, TDH0017, will become available later this month, while the continuation of the 12,000 metre scout drilling campaign at Massamba Group to assess the South Zone and Chimbala prospect areas is on schedule for March 2010.

“The results from the maiden drilling programme demonstrate the potential for substantial resources underlying the South Zone prospect and importantly, the regional continuity of mineralisation of the Massamba Group,” said managing director of Baobab Ben James.

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. Independent scoping metallurgical studies and financial modelling have indicated positive project economics in the production of high quality magnetite (iron and vanadium) and ilmenite (titanium) concentrate commodities.

Baobab formed a strategic partnership with the International Finance Corporation in January 2009 whereby IFC earned a 15 percent direct interest in the Tete project.

Shares in the company added 7.5% on the news.  http://www.proactiveinvestors.co.uk/companies/news/12792/baobab-resources-intersects-broad-mineralisation-zones-at-tete-iron-vanadium-project-scout-drilling-campaign-on-track-12792.html