Baobab Resources Plc ('Baobab' or the 'Company') is wholly focused in Mozambique where it is currently
completing a Definitive Feasibility Study ('DFS') at its pig iron and ferro-‐vanadium project in the Tete province (the
'Tete Project'), one of Africa's fastest growing mining and industrial centres. The International Finance Corporation ('IFC') holds a 15% participatory interest in the Tete Project. The Company is pleased to provide the
c.45kg of pig iron product has successfully been produced. This is further evidence of the pig iron product, which can be produced from the Tete project. Below are the assayed results of pig iron achieved through the smelt test work.
Si | Fe | Ti | Mn | Cr | Cu | V | Ni | C | S | P | |
% | 0.18 | 95.0 | 0.17 | 0.060 | 0.29 | 0.027 | 0.53 | 0.073 | 3.51 | 0.13 | 0.11 |
Distribution of vanadium as well as deleterious elements (phosphorus, sulphur, copper, etc) has been tracked and will be incorporated into a working mass balance. Initial results presented above indicate a recovery of in excess of 75% vanadium to the hot metal, which is in accordance with the bench scale test work completed at CSIRO. It is important to note the low level of Cu and also to mention that the levels of Sulphur, Phosphorous, titanium and other deleterious elements will further reduce with the removal of Vanadium.
Four to six 200g samples of pig iron will then be subjected to vanadium recovery test work using various additives and levels of oxygenation to determine optimised conditions for two larger (5kg) tests to produce a sufficient amount of vanadium-‐rich slag for subsequent characterisation.
Both pig iron and slag samples will be used for marketing purposes.
§ Pilot scale direct reduction trials, using bulk samples of Tenge oxide iron ore, Massamba carbonate and local thermal coal product, are on-‐going at FLSmidth's test facilities in the USA. A first round of kiln trials is now complete and a second is scheduled to commence in the coming weeks. The objective of these trials is to confirm the rotary kiln route as a suitable technology with an accompanied process guarantee.
§ Marketing studies covering the merchant pig iron market, the vanadium market and the supply/demand dynamics of steel production in the Middle East have been completed. The combination of low cost high quality Tete Pig Iron and competitive ocean freight to the Middle East indicates a production cost advantage over Middle Eastern produced DRI, placing Tete Pig Iron as an ideal raw material source for an increasing focus on rebar manufacturing capacity in this region.
The positive marketing results have been incorporated into supplementary data packs for on-‐going discussions with potential strategic partners in northern Asia and the Middle East, many of whom were visited during the week of the 23rd June 2014.
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Following an increased interest from technology providers who can enhance/increase the concentration of TiO2 in slag into a potentially saleable product, a marketing study of the TiO2 market was commissioned in order to gain a better understanding of this potential and how it can add to the economics of the Tete project.
§ Progress is being made with regards to securing access to port, rail and power with negotiations with both public and private sector entities in advanced stages. Discussions concerning coal off-‐take are also underway.
§ Technical logistics studies are well underway to ensure economically feasible methods to evacuate the
pig iron product from the project site through to either the ports of Beira or Nacala.
§ Geotechnical and hydrogeological drilling is complete and will be incorporated into the pit optimisation,
mine scheduling and reserves classification studies being carried out by SRK consultants.
§ The mining title application is ready for submission and work has commenced on the drafting of the
mining contract.
§ The environment, safety and health impact study (ESHIA), resettlement action plan (RAP) and social
development plan (SDP) are all making solid progress and are largely on schedule.
The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the
Jeremy Dowler: Chairma | n | Tel: +44 1372 450529 | |
Frank Eagar: CFO | Tel: +258 21 415 200 | ||
Grant Thornton UK LLP |
Philip Secrett | David Hignell | Jamie Barklem Tel: +44 20 7383 5100
Jerry Keen | Toby Gibbs Tel: +44 20 7468 7964
AIM ANNOUNCEMENT | 3 JULY 2014 Page 2 of 2
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