Baobab Resources PLC (AIM: BAO) said an independent interpretation completed by Coffey Mining indicates an exploration potential of 400-700 million tonnes of magnetite-ilmenite mineralisation to a depth of 250m below surface in the Massamba Group area, located on its Tete iron ore project in Mozambique.
Only last week, the company announced a maiden JORC compliant 47.7 million tonnes inferred mineral resource with an average concentrate of 63.7 percent iron for Tete.
The project is located immediately north of the provincial capital of Tete and comprises three contiguous exploration licences that straddle the central portion of the Tete Mafic Complex, covering an area of approximately 632 square kilometres.
The latest study considers approximately 6 kilometres of strike and excludes a 1.2 kilometre radius centered on the 47.7 million tonnes Chitongue Grande inferred resource, which remains open along strike and down dip.
Technical director Ben James, said: 'The exploration target results further endorse the Tete project's potential to host requisite magnetite-ilmenite resources to underpin an operation processing 5-10 million tonnes per annum for a minimum 30 year period. The results of the study will also assist in the prioritization and design of the company's future drilling campaigns as it works towards expanding its resource base.”
Consultancy Coffey Mining Ltd is currently working on a conceptual mineral process analysis and a financial modelling exercise. Baobab expects to update on progress in October 2009.