Baobab Resources (LON:BAO) managing director Ben James said that drilling results are beginning to reveal the greater potential of the Tete project’s South Zone.
The company released the latest batch of drill results from the iron-vanadium-titanium project in Mozambique. Around 3,500 metres have now been completed in this latest phase of drilling.
Investors embraced the news, with shares gaining around 9 percent on London’s AIM market. After hitting 11p, Baobab shares were last trading at 10.5 pence by early afternoon.
Drilling highlights included concentrate grades between 58.3 and 62.8 percent iron and between 0.62 and 0.69 percent vanadium, with mass recovery reaching up to 36.1 percent.
"The results to date are beginning to reveal the greater potential of the South Zone prospect,” James said.
“Drilling currently underway in the northern portions of the area is delineating a substantially wider zone of mineralisation than anticipated that has yet to be closed off along strike and at depth."
In this northern portion of the South Zone prospect drilling intersected a sequence of stacked, steeply dipping, heavily mineralised packages.
This sequence was around 200 metres wide and it ran along a strike of more than more than a 300 metres.
The mineralisation remains open along strike and at depth.
Additionally, Baobab highlighted that it has successfully secured a second drill rig, which will help improve productivity and accelerate the drilling campaign.
The rig is mobilising to site this week.
The next batch of results is expected by the end of the month.