Developing Mineral Deposits in Mozambique - Baobab …€¦ · · 2011-09-28vanadiferous...
Transcript of Developing Mineral Deposits in Mozambique - Baobab …€¦ · · 2011-09-28vanadiferous...
Baobab presentation 2008
DISCLAIMER
The information contained in these slides and this presentation is being supplied to you by Baobab Resources Plc (the “Company”) solely for your information and may not be reproduced or redistributed in whole or in part to any other person. This document has not been approved by a person authorised under the Financial Services and Markets Act 2000 (“FSMA”) for the purposes of section 21 FSMA.These slides and this presentation do not constitute, or form part of, a prospectus relating to the Company nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, nor shall they, or any part of them, form the basis of or be relied on in any connection with any contract or commitment whatsoever. Recipients of these slides and/or persons attending this presentation who are considering a purchase of ordinary shares in the Company are reminded that any such purchase must be made solely on the basis of the information that the Company has officially released into the public domain. Whilst all reasonable care has been taken to ensure that the facts stated in these slides and this presentation are accurate and the forecasts, opinions and expectations contained in these slides and this presentation are fair and reasonable, the information contained in this document has not been independently verified and accordingly no representation or warranty, express or implied, is made as to the accuracy, fairness or completeness of the information or opinions contained in these slides or this presentation and no reliance should be placed on the accuracy, fairness or completeness of the information contained in these slides and this presentation. None of the Company, its shareholders or any of their respective advisers, parents or subsidiaries nor any of their respective directors, officers or employees or agents (including those of their parents or subsidiaries) accepts any liability or responsibility for any loss howsoever arising, directly or indirectly, from any use of these slides or this presentation or their contents.These slides and this presentation do not constitute a recommendation regarding the shares of the Company. Recipients of these slides and this presentation should conduct their own investigation, evaluation and analysis of the business, data and property described therein. If you are in any doubt about the information contained in these slides or this presentation, you should contact a person authorised by the Financial Services Authority who specialises in advising on securities of the kind described in these slides and presentation.Certain statements within this presentation constitute forward looking statements. Such forward looking statements involve risks and other factors which may cause the actual results, achievements or performance expressed or implied by such forward looking statements. Such risks and other factors include, but are not limited to, general economic and business conditions, changes in government regulations, currency fluctuations, the gold price, the Group’s ability to recover its reserves or develop new reserves, competition, changes in development plans and other risks. There can be no assurance that the results and events contemplated by the forward looking statements contained in this presentation will, in fact, occur. These forward-looking statements are correct or represent honestly held views only as at the date of delivery of this presentation. The company will not undertake any obligation to release publicly any revisions to these forward looking statements to reflect events, circumstances and unanticipated events occurring after the date of this presentation except as required by law or by regulatory authority. By accepting these slides and/or attending this presentation, you agree to be bound by the provisions and the limitations set out in them or imposed by them and to keep permanently confidential the information contained in these slides or this presentation or made available in connection with further enquiries to the extent such information is not made publicly available (otherwise through a breach by you of this provision).Some of the statements are the opinions of the Directors.
Baobab presentation 2008
CORPORATE PROFILE
Baobab Resources plc Listed on AIM London1st February 2007 BAO-AIM
Baobab Resources Plc(UK)
100% Baobab Mining Services Pty Ltd(Australia)
Capitol Resources Lda(Mozambique)
Portfolio of Prospecting Licencesin Mozambique
Maputo Minerals Ltd(BVI)
100% 50%
50%
Moçambique Resources Ltd(BVI)
Baobab presentation 2008
PROJECT PROFILE• Portfolio of 24 prospecting licences, 100% owned by the
Company, containing both advanced & grass roots projects boasting a range of commodities (~4,200km²).
KEY ASSETS:
• MUNDONGUARA COPPER / GOLD MINE• High-grade copper / gold / silver (sulphide ± oxide)• Close proximity to infrastructure• Proven strike potential• Stage 1 Resource Estimate completed
• TETE MAFIC COMPLEX IRON ORE• being explored for Bushveld-style iron ore, base & precious
metal deposits• Encouraging aeromagnetic anomalies indicate extensive
vanadiferous titano-magnetite mineralisation• Interim metallurgical results demonstrate that beneficiation
can produce a saleable product • Tete becoming major mining hub with significant
investments into infrastructure
• Focused strategy, with a pipeline of projects being rapidly assessed & advanced towards feasibility.
• Strong technical & corporate management team with working experience in Mozambique & other Southern African countries.
Baobab presentation 2008
Capital Raisings£ 0.06m @ £0.06 Aug 06
£ 0.33m @ £0.08 Aug 06
£ 2.20m @ £0.10 Jan 07*
£ 1.77m @ £0.115 Jan 08
* AIM IPO 1st February 2007
Major ShareholdersAfrican Minerals Ltd 17.56%
R & J Superannuation Fund 11.23%
Mr Jeremy Bewick Dowler 8.01%
Mineral Securities Ltd 7.68%
Standard Bank 6.53%
Clarity Enterprises 3.61%
Share DataShares in Issue 65.1m
Share price (17/10/08) 4.5p
52 High 16p
52 Low 3.75p
Market cap. (£) 2.93m
Options 3.9m
Warrants 1.1m
Fully diluted shares in issue 70.1m
MARKET PROFILE
AdvisorsNominated Advisor Grant Thornton Corporate Finance LLC
Broker Fox-Davies Capital Limited
CPR CSA Australia Pty Ltd
Market Makers Shore Capital
Winterfloods
Fox-Davies Capital Limited
Baobab presentation 2008
BOARD PROFILEJeremy Dowler, Chairman Non-executive Director
• Board member of various resource companies over the past 20 years.• Qualified as a Chartered Accountant.• Founding shareholder & former finance Director of Platmin Limited, an TSX and AIM listed platinum
exploration & mining company.
Brett Townsend B.Sc, Acting Managing Director• Geologist with 19 years experience in the resource industries (MAusIMM).• Senior management positions at Resource Consultants International Pty Ltd and J.O. Clough Pty Ltd.• Director of Baobab Resources since 2006.
Ben James B.Sc, Technical Director• Geologist with 14 years global experience in the mineral exploration industry (MAusIMM).• Working experience in a wide variety of geological terrains & commodities.• Formerly Exploration Manager of Baobab Resources since 2006.
Tony Walsh B.Com, MBA, CA, Non-executive Director• Chartered Accountant with Ernst & Young.• Joined the Australian Stock Exchange as a senior advisor and later Assistant Manager, Issuers.
Jonathan Beardsworth, Non-executive Director• CEO of Metals Exploration Plc. Previously was head of the London office of Standard Bank Plc’s Mining
& Metals team.• Over 12 years experience of M&A & strategic advisory assignments in the mining industry worldwide.
Baobab presentation 2008
MOZAMBIQUE PROFILE
• Robust geological provinces with little or no historic exploration
• Stable, democratic government
• Modern Mining Act & Cadastral licensing system guaranteeing security of tenure
• Good infrastructure with major investments into transport, communications, power, agriculture, industry and mining
• Investor-friendly fiscal policies
• The Mozambican Government is firmly committed to encouraging foreign investment in developing Mozambique’s mining industry
• Flourishing mining industry with major players (inc. Vale, Riversdale Mining Ltd, Kenmare Resources Plc, BHP Billiton, Rio Tinto & Pan African Resources Plc)
Baobab presentation 2008
TETE PROJECT - BUSHVELD TYPE TARGETS
• Tete Mafic Complex being explored for Bushveldtype layered deposits of iron ore, PGEs, & base metals.
• Licences contain 5 known vanadiferous titano-magnetite deposits.
• Tete fast becoming a major mining hub with Vale & Riversdale active at Moatize & Benga respectively.
• Significant investments going into refurbishing existing infrastructure & developing hydro & thermal electricity schemes.
• Complex also highly prospective for hydrothermal replacement deposits of gold, copper & uranium.
Baobab presentation 2008
TETE PROJECT – MASSAMBA GROUP (V / Ti / Magnetite)• Massamba Group comprises 4
vanadiferous titano-magnetite prospects which have experienced limited previous exploration.
• Rock chip sampling returned average grades of 49% Fe, 21% TiO2 & 0.3% V. Density measurements range from 2.9 to 5.4 g/cm3.
• Recent field work has identified additional magnetite outcrops.
• Interpretation of high resolution geophysics indicates near surface, steeply dipping, highly magnetic bodies ranging in width from 50m to 450m, over a combined strike length of +8km.
• Excellent opportunity for developing significant tonnages at a low discovery cost.
Baobab presentation 2008
TETE PROJECT – INTERIM METALLURGICAL RESULTS
1005.421001.0210020.11000.5510070.310015000Calculated Head
11.910.1211.71.8711.937.60.90.074.144.76.4957.9NON-MAGS
50.210.8954.92.2438.731.28.80.1917.649.6253749.13000G MAGS
37.82.9933.40.549.314.590.30.7278.380.368.610293800G MAGS
dist %grade %dist %grade %dist %grade %dist %grade %dist %grade %(%)(g)
Al2O3SiO2TiO2V2O5Fe2O3Wt DIST.WEIGHTPRODUCT
STAGE 1 BENEFICIATION TEST WORK RESULTS: 106µm grind at 800 & 3000 Gauss
10012.11000.3110049.1910015000Calculated Head
11.922.50.90.044.131.286.4957.9NON-MAGS
38.718.78.80.1117.634.69253749.13000G MAGS
49.38.790.30.4178.356.1368.610293800G MAGS
dist %grade %dist %grade %dist %grade %(%)(g)
TiVFeWt DIST.WEIGHTPRODUCT
• Massamba Stage 1 beneficiation test work at a 106µm grind & 800 Gauss low intensity magnetic separation (LIMS) has produced a high mass yield concentrate assaying 56% Fe & 0.7% V2O5.
• Low concentrate grades of titanium (<9%), silica (0.5%) & other deleterious elements.
• At current market prices, the value per tonne of concentrate is estimated at US$80 iron plus vanadium credits.
• Non-magnetic residue containing 22% titanium may be a marketable byproduct.
• Improved concentrate grades are expected from Stage 2 beneficiation test work at a finer grind.
Baobab presentation 2008
TETE - MASSAMBA DRILLING DETAIL• Stage 1 Diamond drilling to target known
prospects. Drilling will test 1.2km of +8km strike potential (Q1/Q2 2009).
* Diamond: angled 200m deep holes at 75m centres along traverses spaced 150m apart .RC: angled 100m deep holes at 50m centres along traverses spaced 600m (stage 1) & 300m (Stage 2) apart.
** width ranges estimated from outcrop mapping. Where available, the individual strike lengths are measured from outcrop mapping, otherwise an extrapolation of 100m from drill limits has been applied. An open-pit depth of 150m has been used in the calculations. The in-ground specific gravity of 4g/cm3 is based on laboratory analyses completed by Baobab.
*** width ranges estimated from the aeromagnetic modeling (discounted by ~75%). Lengths have been extrapolated 150m north and south of the individual traverses. Depth and SG values are 150m and 4g/cm3 respectively.
• Stage 2 Diamond drilling to target Monte Chimbala & southern magnetic anomaly.
47.4mt - 61.2mt1.15£558,0004,80024
9.0mt - 12.0mt0.25£93,0008004Caangua
14.4mt - 19.2mt0.4£163,0001,4007Chitongue Pequeno
24.0mt - 30.0mt0.5£302,0002,60013Chitongue Grande
Exploration Target (mt)**
Strike Length
(km)
Estimated Cost (GBP)
No. Metres
No. Holes*PROSPECT
STAGE 1 DIAMOND DRILLING
63.0mt - 90.0mt0.9£790,0246,80034Chimbala / South Zone
Exploration Target (mt)***
Strike Length
(km)
Estimated Cost (GBP)
No. Metres
No. Holes*PROSPECT
STAGE 2 DIAMOND DRILLING
• RC drilling in 2 Stages for an aggregate of 22,000m at an estimated expenditure of £1.8m.
Stage 1 Diamond drilling
Stage 2 Diamond drilling
Stage 1 RC drilling
Stage 2 RC drilling
Baobab presentation 2008
TETE - FUTURE DIRECTIONS
● Diamond drilling 1
● Airborne geophysics/radiometrics
●Diamond drilling 2
● Metallurgical test work
●RC drilling 2
● Advanced studies
DECEMBER 2008
DECEMBER 2009
DECISION TO MINE (2010/2011)
RESOURCE ESTIMATE 1
●
RESOURCE ESTIMATE 2
●
PREFEASIBILITY STUDIES● Geotechnical / hydro● Environmental / Social● Mine design & methodology● Infrastructure, equipment & services● Financial, commercial & legal● CSR initiatives
DEVELOPMENT OF ADDITIONAL RESOURCES ●
● RC drilling 1
●Additional diamond& RC drilling
Baobab presentation 2008
MUNDONGUARA - HISTORY
Massive Sulphide Secondary Ore
The tip of the iceberg
• Recorded production from 1902 to 1989 when the mine closed due to poor management
• Resources exploited over 1km of strike to depths of ~200m below surface (stope widths between 1m and 20m)
• Resource grades ranged between:
1.6% - 4.6% Cu0.15g/t - 2.99g/t Au1.00g/t - 63.0g/t Ag
• Co & Ni credits
• No analogies found to date – a new model for mineralisation
• Manica fast becoming a mining community with 5 international exploration companies working in the area including Pan African Resources Plc completing Pre-Feasibility (1.7Moz Au)
Baobab presentation 2008
MUNDONGUARA - INFRASTRUCTURE (BEIRA CORRIDOR)
• International rail & road within 2km of mine giving excellent access to supply lines & markets.
• Abundant hydroelectric power.
• Major investments into transport, communications & power.
Baobab presentation 2008
MRC027: 29m @ 1.5% Cu, 0.17g/t Au & 1.97g/t Ag
MUD016: 9.25m @ 1.8% Cu & 4.49g/t Ag
MUD027: 1m @ 11.5% Cu, 0.44g/t Au & 5.77g/t Ag
MUD011: 3m @ 3.9% Cu & 4.24g/t AgMUD011: 1.71m @ 2.4% Cu, 1.17g/t Au & 4.29g/t Ag
MUD009: 3m @ 2.9% Cu & 3.00g/t Ag
MUD007: 3m @ 6.1% Cu, 0.42g/t Au & 12.76g/t Ag
MUD021: 11m @ 0.9% Cu
MUD023: 5m @ 1.0% Cu & 3.80g/t Ag
MUNDONGUARA - STAGE 1 RESOURCE
• Stage 1 JORC Inferred Mineral Resource:
Granite gneiss
Ultramafic
Diorite intrusive
Exploited ore
Stage 1 resource
Drillhole pierce point
20
0m
20
0m
142.93.37.80.1830.62.31.341.0
208.12.111.10.1142.51.43.130.3
Category: Inferred Technique: Inverse Distance Squared
(Ozs x 1,000)(g/t)(Ozs x 1,000)(g/t)(tonnes x 1,000)(% Cu)(x 1,000,000)(% Cu)
Ag MetalAg gradeAu MetalAu gradeCu MetalCu GradeTonnesLower Cutoff
Baobab presentation 2008
MUNDONGUARA - DEPTH POTENTIAL
• Down plunge continuations of high-grade zones Conceptual Target to be tested by Deeps drilling programme
• Theoretical underpinning source target
Granite gneiss
Ultramafic
Diorite intrusive
Exploited ore
Stage 1 resource
Conceptual target
Drillhole pierce point
65
0m
Seymour Prospect
* Using a 0.3% Cu lower cutoff grade extending to a maximum depth of 200m below existing development
Baobab presentation 2008
• Phase 1 drilling & trenching outlines significant copper & gold mineralisation at Seymour Prospect, 1km west of mine:
• Mineralised porphyry outcrops located 400m west of Seymour
• Robust copper-in-soil anomalies confirm a mineralised strike length of +3km (openended to the west)
MUNDONGUARA - STRIKE POTENTIAL: WEST
Seymour ProspectSeymour West
1km1km
Granite gneiss
Olivine peridotite
Diorite intrusive
Stage 1 Resource
Mundonguara Mine
1km
Granite gneiss
Olivine peridotite
Dacite
Komatiite
Sediments
Diorite intrusive
Serpentinite
BIF
Talc shear zone
TrenchingMTR001: 20m @ 3.7%Cu & 0.82g/t Au
RC DrillingMRC032: 17m @ 2.1% CuMRC031: 3m @ 9.59g/t AuMRC034: 27m @ 0.7% Cu
Baobab presentation 2008
MUNDONGUARA - STRIKE POTENTIAL: NORTHEAST
• Aeromagnetics identify structurally off-set continuations of mine sequence to the NE (supported by Cu in soil anomalies)
Seymour Prospect
2.5
km
Mundonguara Mine
Mine sequence continuationwith Cu in soil anomalies
Baobab presentation 2008
MUNDONGUARA - ADDITIONAL TARGETS: Nickel & Gold
• Significant Nickel-in-soil anomalism south of Mine sequence overlying basal olivine-peridotite sequence
• Broad >0.2% Ni intercepts in RC drilling & trenching (silicate or sulphide Ni?)
• Coherent gold-in-soil anomalism associated with banded iron formation (BIF) interpreted as the fault off-set continuations of Pan African Resources’ Dot’s Luck prospect
BIF associated Au in soil anomaly
Baobab presentation 2008
MUNDONGUARA - CORPORATE SOCIAL RESPONSIBILITY
• Environmental & social baseline studies completed at outset.
• The Company is firmly committed the retention & promotion of staff through formal & informal training & mentoring programmes.
• A culture of safety has been nurtured to ensure that every man makes it home at the end of his shift.
• The Company respects the rights and needs of the local community.
• The Company endorses the UN Millennium Development Goals & seeks to implement sustainable initiatives that will assist the local community in achieving these goals.
Baobab presentation 2008
MUNDONGUARA - FUTURE DIRECTIONS
● Environmental & social baseline study
● Channel sampling, Trenching & soil geochemistry● Surface & Underground drilling
● Airborne geophysics/radiometrics
Ground geophysics ●
Surface drilling 2 ●
Metallurgical studies 1 ●
Mine design & methodology studies ●
Infrastructure, equipment & services studies ●
Surface drilling 3●
CSR initiatives ●
Advanced studies ●
DECEMBER 2007
DECEMBER 2008
DECISION TO MINE (2010/2011)
● RESOURCE ESTIMATE 1
DECEMBER 2009 ●RESOURCE ESTIMATE 2
Geotechnical / hydro studies ●
Financial, commercial & legal studies ●
Metallurgical studies 2 ●
Baobab presentation 2008
SUMMARY: TETE
Work completed during 2007 / 2008 has expanded the prospectivity of the TeteProject.
Reassessment of known V-Ti-Magnetite prospects, in conjunction withaeromagnetic interpretations, indicates the potential for significant tonnages ateconomic grades.
Test work underway to determine the metallurgical characteristics of thedeposits & the economics & potential processes for recovering either avanadium product or a combination of pig iron, vanadium & titanium products.
Initial metallurgical results ate encouraging & meet the general specifications required byend-users.
Stage 1 drilling of V-Ti-Magnetite prospects planned for Q1/Q2 2009.
Tete is becoming a major investment centre with Vale & Riversdale developingcoal projects.
Existing infrastructure being refurbished & expanded: railway, port, power.
Baobab presentation 2008
SUMMARY: MUNDONGUARA
Work completed over the past 18 months indicates that the MundonguaraSystem is significantly larger than previously anticipated, requiring anaggressive exploration effort to rapidly assess its full potential.
Potential for significant tonnages exists in 3 areas:
• down plunge extensions of exploited ore zones within the mine - drilling has confirmed continuity
• System along strike to the west - >1.5km area containing the Seymour Prospect where the Company has made significant exploration advances
• System along strike to the northeast – recently identified fault offset continuations of the mine sequence
Stage 1 JORC Inferred Resource Estimate completed:3.1Mt @ 1.4% Cu, 0.11g/t Au, & 2.1g/t Ag
Comprehensive Pre-Feasibility drilling campaign designed.
Baobab presentation 2008
USE OF PROCEEDS
£390,000CORPORATE
£160,000ADMINISTRATION
£110,000TENURE: Surface Tax commitments
£260,000EXPLORATION: Support/salaries/vehicles/consumables
£580,000TETE: Stage 1 Diamond Drilling (drill/assay/consultants)
JulJunMayAprMarFebJanDecNov
20092008
NEWS FLOW:
Final beneficiation results
Stage 1 Resource Estimate
Additional metallurgical results
Interim drilling results 1
Interim drilling results 2
Interim drilling results 3
Drilling commences at Tete
Raising £1.5m for exploration focused on developing resources at Tete iron ore project
MUNDONGUARA: source strategic partner/additional funding to advance project towards feasibility
OTHER PROJECTS: continued systematic low cost exploration
Wet season
Baobab presentation 2008
CONTACTS
BAOBAB RESOURCES PLCBAO-AIMwww.baobabresources.com49 Phillimore StreetFremantleWestern Australia 6160Tel: (+61) 8 9430 7151
Brett Townsend Acting Managing Director [email protected] (+61) 409 335 105
Jeremy DowlerNon-Executive Chairman [email protected] (+44) 1 372 450529
Ben JamesTechnical Director [email protected] (+61) 419 966 182
Jon Crowe Market Relations [email protected] (+61) 419 966 173
FOX-DAVIES CAPITALwww.fpcap.com
Daniel Fox-Davies [email protected] (+44) 20 7936 5220
Baobab presentation 2008
CHANGARA PROJECT – BROKEN HILL TYPE TARGETS
• Considered highly prospective for Broken Hill Type polymetallicbase & precious metal mineralisation.
• Hosts numerous occurrences & deposits of zinc, lead, manganese, iron ore, fluorite, copper & silver.
• Limited historical exploration.
• Extensive soil geochem survey underway
Baobab presentation 2008
SUSSUNDENGA PROJECT – LODE Au TARGETS• Robust artisanal gold workings at
Bandire.
• Four discrete gold-in-soil anomalies generated by Ashanti.
• 11 RC holes drilled by Ashanti into one anomaly showed stacked gold veins dipping west & striking north into Baobab licences.
• Similar regional geology northwards through Baobab licences for 25km.
• Complete Stream Sediment Sampling coverage scheduled for 2008 (Gondwana).
Baobab presentation 2008
SENGA SENGA PROJECT – TELFER TYPE Au-Cu TARGETS
Ore system model
• Dome structures identified, Telfer Type model applied.
• Complete Stream Sediment Sampling coverage scheduled for 2008 (Gondwana).