04/07/14 – Baobab Resources Sees Further Evidence Of Commercial Pig Iron From Tete

LONDON (Alliance News) – Baobab Resources PLC Thursday said it has found further evidence that a commercial pig iron product can be achieved at its Tete project through smelting trials being conducted as part of the preparation of its definitive feasibility study for the site.

The Mozambique-focused pig iron and ferro-vanadium company said the smelting trials have successfully produced a 45 kilogram pig iron product using a tilting furnace in South Africa.

The company said the initial results from the trials show a recovery of in excess of 75% vanadium to the hot metal, which is in accordance with previous bench scale tests.

Baobab Resources also noted low levels of copper and said that quite high levels of sulphur, phosphorous, titanium and other deleterious elements will reduce after the removal of vanadium.

In April, the company said it had completed a second round of bench-scale beneficiation, reduction and smelting tests for the site and had achieved a final iron alloy containing 99% iron after refining, which is significantly purer than the specification of a commercial pig iron product.

On Thursday, Baobab said progress has been made with securing access to port, rail and power for the site and advanced discussions about coal off-take agreements are also currently underway.

The company said it continues to develop its assets and prove up the pig iron resources, noting that its mining title application for the site is ready for submission.

“Overall we are very pleased with the progress being made on the feasibility study. Results to date are in line with expectations and continue to de-risk the asset,” Managing Director Ben James said in a statement.

Source – LSE.co.uk