Mozambique-focused miner Baobab Resources has released details of its recent resource upgrade at the Tenge/Ruoni prospect at its Tete pig iron and ferro-vanadium project.
The results show that more resources have now been classified as 'indicated', upgraded from the previous category of 'inferred', which further "de-risks" the 85%-owned project, the company said.
Tete's global resource base, which includes both indicated and inferred resource, now stands at 727m tonnes (Mt), 553Mt of which is defined underlying the 2.5km squared footprint of the Tenge/Ruoni prospect.
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The resource base is slightly higher than the previous 725Mt estimate given in February.
Some 217Mt has now been upgraded to the indicated category, representing an "encouraging conversion ratio" from inferred to indicated of 73% at Tenge and 88% at Ruoni North.
"This latest update further consolidates the resource base on which to build a large-scale operation. The excellent conversion rate from 'inferred' to 'indicated' classifications in the areas infill drilled during 2012 further de-risks the technical elements of the project," said Managing Director Ben James.
"With the base case pre-feasibility study complete and results of increased production models due in shortly, Baobab is now in a position to accelerate the appraisal and execution of corporate strategies that will ensure the successful development of the Tete project. These initiatives will run in parallel with the continued technical initiatives as the Company maintains momentum into the definitive feasibility study."
Shares were up 0.36% at 21.2p in early trading on Wednesday.
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