Baobab Resources saw its share price punished on Tuesday, down as much as eight per cent, as the Mozambique-focused resource development company updated on its iron, vanadium and titanium project.
"The majority of the pre-feasibility study is now complete and the company has commenced work on time critical components of the definite feasibility study to ensure that momentum is maintained going forward," said Managing Director Ben James, who called it an "exciting time" for the company.
The pre-feasibility study, which concerns Baobab's 85%-owned Tete Pig iron, vanadium and titanium project, has resulted in upgraded estimates for resources available at the Ruoni North and Tenge blocks, while Ruoni South re-estimation is underway.
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Any further detail on the studies was not provided, but will be released shortly.
"The full pre-feasibility study will be released as soon as the company has assimilated the results of the equipment procurement study into its capital expenditure model," said James.
The company has also finished beneficiation and pyro-metallurgical studies for the sites, as well as environmental impact assessments. Baobab is now researching equipment prices before it can finalise its estimates for the project's capital expenditure. This should be ready in "a few weeks".
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