Baobab managing director Ben James.

Fremantle, Australia --- MININGREVIEW.COM --- 02 February 2012 -  Baobab Resources plc (Baobab) ‒ an Australian-based, AIM-listed exploration company focused on Mozambique ‒ says it has had positive results from its iron ore prospecting drive in the country.

The company’s activities are focused in Mozambique’s Tete province, where it is prospecting for iron ore deposits.

A progress report issued here said the results of the first three wells drilled at the Tenge deposit are encouraging. The company also noted that it was waiting for the results of a further 23 test wells, which were still being analysed.

Baobab Resources said that calculation of estimated reserves at the Tenge deposit, which is part of the company’s Tenge/Ruoni project, was expected to be finished in March, and that the current estimate of 324,000t was likely to increase.

“We are in a unique position in Africa ‒ if not globally ‒ in that our project is strategically located to access all of the required infrastructure and complementary resources which are available in the area,” says Baobab managing director Ben James.

The Tete project is well placed to access low tariff hydro-electric power from existing and developing schemes on the Zambezi River; the ports of Beira and Nacala are being refurbished, as are the rail corridors through to the Tete area, providing strategic access to Africa’s eastern seaboard.

“We also have the luxury of slotting in behind mining majors Vale and Rio Tinto as they push ahead with the refurbishment and expansion of the Mozambican infrastructure, in their development of the Benga and Moatize coalfields,” James points out.