Baobab Resources plc (LSE:BAO) announced that it has received analytical results from the first 10 reverse-circulation drill holes completed on the Tenge resource block of its Mozambique-based Tete pig iron and ferrovanadium project. Significant intercepts have an average head grade of 42 percent iron.
As quoted in the press release:
These results are substantially higher than the current 36% Fe of the 553Mt combined Tenge/Ruoni resource and in line with the weighted average of 45% Fe reported from channel sampling of two large trenches straddling the enriched summit of Tenge mountain (see RNS dated 20 December 2013 for details).
Ben James, Baobab’s managing director, commented:
The RC results to date offer particular encouragement as they point towards the potential for higher head grades at Monte Tenge. This will have a significant impact on mining and processing costs over the first decade of production.