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Momentum builds at Baobab’s Tete

Publication of a key study and capital cost estimates for Baobab Resources' Tete iron ore project are imminent
February 20, 2013

Mozambique-focused minerals explorer Baobab Resources says a key feasability study of its Tete pig iron project has been completed. Upgrades to estimates, which could add to the 482m-tonnes resource, have also been completed at Tete's Ruoni North and Tenge blocks, the results of which are expected shortly. Meanwhile, another estimate is being produced at Ruoni South.

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Baobab is also awaiting the results of a study about the cost of equipment, which will allow it to finalise its capital-spending estimates. The company says it is "sufficiently confident" in the outcome of the study to have started work on some "time critical" parts of the Tete project.

Some investors have been frustrated by the pace of development at Tete, but the flip-side of Baobab achieving 'first-mover' status in Mozambique's undeveloped mining industry is that lead times were always likely to be stretched. Nevertheless, with the imminent publication of the key 'pre-feasability' study and capital-cost estimates, the project now has real momentum.