In its ‘Morning Note’, Northland Capital called Baobab Resources’ (LON:BAO) initial data compilation results from the Monte Muande licences in Mozambique “particularly encouraging”.
Baobab is earning into North River Resources’(LON:NRRP) Monte Muande licences in the Tete province of the East African country. The area is prospective for iron, phosphorus, uranium and gold. Yesterday the partners announced that evaluation work in Mozambique was starting to reveal a significant multi-commodity project.
The partners first agreed the terms of the Monte Muande joint venture in November 2010, and since then Baobab has been compiling and analysing all the historic data from the area. Yesterday it unveiled its findings as well as its plans to start a 2,000 metre drilling programme in April.
Baobab has nearly completed the compilation of historic exploration data from Monte Muande, based on work that was carried out between 1983 and 1985.
Broker Northland commented that, whilst still early in the Monte Muande project with much to follow up, the early interpretation of the data has been particularly encouraging.
Drill hole and trench results highlight the potential grades of the deposit and soil geochemistry indicates that the magnetite/phosphorus mineralisation extends for a considerable distance to the southwest, it said.
“Metallurgy varies significantly to the main Tete prospect so it is likely that Monte Muande will form a distinct project but we suspect that the project will significantly enhance Baobab’s overall resource.”
Northland also noted that mapping by Mavuzi Resources in 2008 identified evidence of coal exposed in river banks and that Baobab has commissioned consultants to make a more detailed assessment of coal potential as soon as conditions allow.
While it is too early even to hint at the type or extent of the coal present, the coal indicators add another dimension, Northland said, describing Monte Muande as a “highly promising diversification inexpensively purchased by Baobab, presenting an additional strong catalyst to the already increasing prospective Massamba group.”