News

August 04, 2008

Baobab Plants The Seeds Of Growth With A JORC Resource At Mundonguara

By Alastair Ford

From a small acorn does a mighty oak grow, or in this case, from a small baobab seed does a mighty baobab grow. That at least is the hope at Baobab Resources, the company named after the mighty baobab tree indigenous to much of sub-Saharan Africa, a tree which gives the oak a serious run for its money. The company has just released maiden JORC numbers for its lead property, the Mundonguara project in Mozambique. They look pretty good at first pass, even if for now they only show that the seed has fallen on fertile ground. According to data prepared by international mining consultants Coffey, Mundonguara contains 3.13 million tonnes of ore grading 1.4% copper giving a total of 42,500 tonnes of contained copper at a 0.3 per cent cut off. There are also some small gold and silver credits to throw into the mix, but it’s the copper grade and the potential for more which ought to grab investors’ attention.

Mundonguara is an old property, which last produced metal back in the late 1980s. In the press release which accompanied Baobab’s listing on Aim back in February 2007, the company pledged that much of the £2.2 million raised would be used to undertake drilling “to confirm an existing high grade target and to explore for down dip and along strike extensions”. The latest JORC numbers go a long way towards fulfilling that pledge. “It’s a pretty solid building block”, says Baobab’s new chief Brett...