african minerals appears to be upping its stake - possible takeover / offer?

Edison Note Out!

Baobab has, this week, released the details of historic exploration results relating to its Monte Muande magnetite/phosphate joint venture. The results of the 28 drill holes and 38 trenches completed on the project by the Geological Institute of Belgrade (GIB) in the early 1980s demonstrated grades as high as 67.7% Fe and aggregate widths as high as 214m. The absence of systematic sampling and wide drill hole and trench spacing suggests that relatively little of GIBs data would yet support a JORC code-compliant resource. Consultants have been commissioned to estimate an Exploration Target and to conduct preliminary investigations into potential mineral processing flow sheets to generate discrete magnetite and phosphate concentrate products. Nevertheless, given the data presented, we estimate that Baobab could potentially declare an immediate resource of c 13.7Mt at 40.9% Fe and a c 220Mt exploration target. At an industry average valuation, such a deposit would be worth an immediate c US$19.8m to Baobab, or 7.1c (4.5p) per share for its 60% interest in the project.

Last updated on 01/02/2011

Industry outlookBaobab has an EV equivalent to c US$2/t JORC iron (cf an industry average of US$3.53/t). Pro-rata the higher resource estimate implies a share price of c 65p (49p after dilution), rising to over 1 at the industry average rating

HAPPY DAYS !!!!!!

This is gonna re rate on jorc!! imvho..... Anytime now.

glad i bought back in yesterday - provable if the wankers start questioning my honesty again! ..... 25k lots and just may allow greed to convince me to buy another

Well, passed my prediction post 41. Updated 30p coming 8-)

One to be in...that's for sure.....

Looking good...! I'm staying in for the 1 sp (imho, dyor)

So many rigs....such a lot to do......looking good:
9th FEBRUARY 2011



Baobab Resources plc ('Baobab' or the 'Company'), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique, is pleased to announce that two reverse circulation (RC) drill rigs have mobilised to South Zone over the weekend and are currently drilling in Blocks 1 and 7.

Contracts are currently being finalised with two drilling companies to ensure a fleet of three RC rigs and two diamond drill rigs are available to support the Company's aggressive 30,000 metre drilling campaign in Tete through the 2011 season.

Commenting today, Ben James, Baobab's Managing Director, said: "We are very pleased that we have been able to recommence resource drilling at South Zone. Although the wet season is by no means over, getting started early will enable us to bring forward project timelines."

Cool! onwards and upwards. I'm 80% up and continung to hold!

On the way up now after retracement and looking for a BREAKOUT on this new push, a very good Level 2 of 4 v 1 at 19.50 / 19/75p spread

BIG WANKER ( B~stard ) done it again below.... yesterday

every time a share price rise ..... bought yesterday, no honesty and decency is what you have not got, if you want to tell us you bought say it at the time otherwise keep it for yourself .....

cynic - 02 Feb 2011 10:56 - 60 of 66
glad i bought back in yesterday - provable if the wankers start questioning my honesty again! .....

do you wish top call me a liar? .... if so, then please be unequivocal, but be well aware that you tread on quicksand .... failing that, zipp it and get back to abusing yourself

fyi, i sold them all on 8/2 for a minuscule nett profit

February 17, 2011 -- By Alex MacDonald Of DOW JONES NEWSWIRES

U.K. listed, Australia-based Baobab Resources Ltd (BAO.LN) is on track to develop Mozambique's first iron ore deposit, a move which could spur the creation of a steelmaking industry in the country's central province of Tete, the company's head of exploration said Saturday.

"It is possible that there are ways to get to steel production here in Tete: thermal power, hydro power [and coking coal are] in sufficient quantities," Iain Plews told Dow Jones Newswires as he surveyed a drill rig on top of Baobab's South Zone area.

He said the company may be sitting on a resource base of around 1 billion tons of iron ore or more once all the exploration has been completed.

Baobab is prospecting for iron ore in the Tete basin where several international mining companies including Brazil's Vale SA (VALE) and Australia-based Riversdale Mining Ltd (RIV.AU) are already developing mega coking coal projects for export.

A nascent steel industry however is still years away:

Baobab Resources is still in the process of proving that the size of its iron ore discovery is large enough to be make it a commercially viable venture.

Hopes are high. Baobab Resources has already proven that 47.7 million tons of magnetite iron ore exists on a small fraction of its Tete exploration area.

It expects that by around the middle of this year, it will be able to prove it has at least another 300 million tons of proven resources and possibly as much as 400 million tons to 700 million tons in proven resources.

Baobab, which is 7% owned by the International Finance Corporation, will then move the project into a feasibility study phase where it plans to outline the best options to develop the project.

The presence of cheap hydro-electricity close by and two railway lines means Baobab could contemplate processing or beneficiating the iron ore on site and even build a steel plant.

Baobab would like to boost the ferrous content of the ore on site from 25% to 30% on average to 60% to 64%. As part of the beneficiation process, Baobab would also have to strip Ilmenite out of the ore.

Ilmenite is used to make titanium dioxide, a key ingredient used in paints.

Baobab is modeling its project on the assumption that it will be able to mine 10 million tons of ore a year and produce two key products:

3 million tons of magnetite iron ore concentrate and 1 million tons to 1.5 million tons of titanium concentrate.

The iron ore deposit would be commercially viable with an iron ore price of $70 a metric ton, said Ben James, Baobab's managing director.

This compares with $191.9/ton price for iron ore fines with 62% ferrous content delivered in to China, according to The Steel Index Wednesday.

Baobab, which has a market capitalization of about GBP35 million, expects it will cost $9 million to complete this year's drilling campaign at five projects, another $50 million to develop a bankable feasibility study for the Tete iron ore project, and $500 million to mine and process the ore.

It would need another $4 billion to smelt the iron ore into steel, James said.

"A lot of companies our size wouldn't look at smelting but because of the IFC and our long term view of Tete, we can as a viable possibility," James said.

From a funding perspective, the company expects to tap an equity line to make sure it has enough cash to complete its drilling program.

It is also considering placing 10% to 15% of the company's shares with one or two large institutions.

"We're going to have to attract a partner to the project," James said.

He expects that Baobab could start producing its first iron ore in 2015.

On the move again, News coming!!! 8-) Any day now.

Ready for a BREAKOUT 20.75 / 21.25p +1p
MACD on the turning as the UPTREND is continuing

And now at that point of BREAKOUT 21.50 / 21.75p

rising and on a good level 2 of 2 v 2 after the last move was UP

MONEY AM - chart still on a mess after a week of problems

Has gone over the previous high so now is on a BREAKOUT 22p

30p coming cielo 8-))

Maybe but I close my position, allways do it on the spike

the level 2 was moving against with 1 v 5 at 22.25 v 22.50p and not able to sell online, so the broker done it on the phone just in time

Iam not in this to trade, Here for the long term. Great prospects. Will probally be brought out eventually thou. gltu