Baobab Resources plc is a Mozambican-focused explorer with a large landholding in the central north of the country. The company's flagship project is the Tete pig iron project
Baobab Resources presses accelerator on Mozambique iron ore project; expects resource upgrade
Baobab Resources (LON:BAO) is sufficiently confident in its preliminary feasibility study (PFS) on the Tete pig iron project in Mozambique to authorise the move further along the planning and development timeline.
It has also revealed resource upgrade estimations have been completed at the Ruoni North and Tenge blocks on the project.
The Ruoni South re-estimation is currently underway, so the results of the work will be unveiled shortly.
However, the main thrust of today’s release focused on the Baobab decision to begin work on the time-critical elements of the definitive feasibility study (DFS).
The company said the DFS drilling programme got underway at the start of the month with the objective of lifting resources into the higher confidence measured category.
At the same time, beneficiation and pyro-metallurgical studies have been largely completed, including side studies into the treatment and upgrading of vanadium and titanium by-products.
Baobab also revealed the environmental impact assessment scoping study and public consultation process is complete, with the environmental licence application being lodged shortly.
Wet season baseline studies, which are fundamental to the environmental impact assessment work programme, are scheduled for March.
Infrastructure, freight, marketing and mining studies, including mine scheduling, pit optimisation, geotechnical and hydrogeological studies, have also been completed.
Managing director Ben James said: “These are exciting times for the company. The majority of the pre-feasibility study is now complete and the company has commenced work on time critical components of the DFS to ensure that momentum is maintained going forward.
“The full PFS will be released as soon as the company has assimilated the results of the equipment procurement study into its capex model.”