Baobab Resources has expanded its iron ore resource inventory to 725m tonnes at its Tete project in Mozambique.
The mining group added around 60m tonnes to the global resource and has upgraded 152m tonnes up into the 'indicated' resource category.
The upgrade includes 550m tonnes at the 2.5km2 Tenge/Ruoni prospect.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company is very pleased to announce the expansion of the global resource inventory to 725Mt," Managing Director Ben James said.
"The Tenge/Ruoni prospect's compact 2.5 square kilometre footprint now hosts over half a billion tonnes of iron ore grading 36.4% iron, sufficient to underpin a large scale, vertically integrated pig iron operation over a significant life of mine.
"Of particular encouragement is the high conversion rate of 85% from inferred to indicated mineral resources on the Ruoni North resource and the plus 70m tonnes defined so far at Tenge."
Infill drilling has also been completed at the Ruoni South resource block, with results yet released.
Shares fell 1.29% to 28.75p at 11:43 Thursday.
RD
