Perth, Australia — 10 April 2013 – Australian-based exploration company Baobab Resources says that the latest update of iron ore resources available in the Tenge-Ruoni region, in Mozambique’s Tete province, points to the possibility of a large pig-iron operation.

A company update, which was done by Australian consultancy Coffey Mining, increased estimates for existing iron ore reserves to 727Mt.

The update also showed that of the total estimated reserves, 535Mt are concentrated in an area of just 2.5sq km.

The economic pre-feasibility study carried out by Baobab Resources showed that there was enough potential in the block to produce 1Mtpa of pig iron, and gave the project a net value of US$1.3 billion.

The company began its definitive feasibility study on 2 February, and is now assessing a range of strategic corporate opportunities.
Baobab managing director Ben James commented: “This latest update further consolidates the resource base on which to build a large-scale operation.  With the base case PFS 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.

Baobab Resources has a stake of 85% in the project, and the remaining 15% is held by the International Financial Corporation (IFC) of the World Bank group.

Source: Baobab Resources. For more information, click here.