TIDMBAO

RNS Number : 3350M

Baobab Resources PLC

15 July 2014

BAOBAB RESOURCES PLC

CHANGARA JOINT VENTURE UPDATE

15 JULY 2014

New high priority Base Metals targets identified at Changara Joint Venture

Baobab Resources PLC ('Baobab' or the 'Company') is wholly focused in Mozambique where it is developing a pig iron and ferro-vanadium project in the Tete province (the 'Tete Project'), one of Africa's fastest growing mining centres. Other assets in the Company's portfolio include the Changara project which is being operated under a Joint Venture ('JV') with ASX listed Metals of Africa (please refer to RNS dated 28 November 2012).

Baobab announces that today an exploration update was made by Metals of Africa (ASX:MTA). An extract of the announcement is presented below and the full announcement is available on the Australian Stock Exchange website:

http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=mta

Alternatively, investors may download a complete copy, including figures and plates, from the Company's website:

http://baobabresources.com/investor/aim-announcements

HIGHLIGHTS

-- Metals of Africa has identified three new high priority base metal targets within the Changara Joint Venture project in Mozambique. Targets are:

-- Cassidy Shea prospect: Very large Zinc-Copper target with spot high grades up to 11.9% Cu and 5.1% Zn

-- Rhodonite Hill prospect: Outcrops of Broken Hill type alteration over a 2km strike length and grades up to 14.4% Pb at surface

-- Downeaster prospect: 1.4km long Cu anomaly in soils with elevated Pb and Zn and spot high grades up to 28.7% Zn

-- The positive results from the Company's continued exploration efforts to define these targets has provided MTA with further strong belief in the potential for discovery of a major zinc-copper-lead deposit within the project area.

-- Prospects are shallow drill worthy targets and further exploration will be conducted to define drill targets - drilling is planned to commence by October 2014.

Metals of Africa Limited (ASX: MTA) (the Company) is pleased to announce that it has identified three new high-priority base metals targets at the Changara Joint Venture, in the Tete province of Mozambique. The three new targets have been defined by a combination of interpretation of geological, geochemical and geophysical datasets plus detailed geological mapping.

The results of this work provide the Company with what it views as compelling optimism for the discovery of a major zinc-copper-lead deposit in the extensive tenement holding.

The three priority targets are: Cassidy Shea, Rhodonite Hill, and Downeaster. They three represent some of the highest ranked prospects of a total of 39 prospects which have been systematically ranked at the Rio Mazoe/Changara Project area. Reconnaissance work continues on the remaining 36 prospects.

Of particular importance has been the identification of outcropping zones of sulfide mineralisation that includes sphalerite (Zinc, Zn), chalcopyrite and malachite (copper, Cu), and galena (Lead, Pb), in addition to BHT alteration assemblages of Pb and Zn bearing silicate minerals.

The program of geological, geochemical, and geophysical interpretation was conducted by MTA's exploration team in conjunction with independent geological consultant, Iain Groves, whose expertise is in the exploration of similar style deposits at Broken Hill in New South Wales.

After spending two weeks on site, Independent Geological Gonsultant, Iain Groves, with considerable experience exploring at Broken Hill NSW, commented: 'Sulphide assemblages noted at Cassidy Shea include thick sequences with disseminated chalcopyrite and sphalerite (oxidized to malachite and smithsonite) in fine psammite to psammopelite garnet bearing rocks with associated gahnite and banded quartz garnet rocks with weakly layered sulphide. These types of rocks are common at Broken Hill proximal to the basal part of the system (Zinc Lodes). At Cassidy Shea, the disseminated sulphide zones identified may represent a large Cu-Zn target in their own right.'

At Cassidy Shea multiple zones of outcropping Zn and Cu mineralisation are present, and recent pXRF analysis has returned rock chip samples up to 11.9% Cu and 4.37% Zn, which demonstrates its strong mineralised potential. The Company aim to define drill targets for drilling in the 2014 field season.

Rhodonite Hill is a large Pb and Zn anomaly, which is open to the north and south, and pXRF analysis has yielded lead results of up to14.4% Pb. Ground geophysics and mapping are planned to define drill targets at this anomaly. Downeaster is a strong 1.4km long Cu anomaly(with associated Zn and Pb), with peak values in- soils of 2018ppm Cu, 1753ppm Zn and 437ppm Pb. Additional infill soil sampling will be conducted to further confirm the prospect's potential.

CONTACT DETAILS

Baobab Resources PLC

   Ben James: Managing Director                            Tel: +258 21 415 200 
   Jeremy Dowler: Chairman                                     Tel: +44 1372 450529 
   Frank Eagar: CFO                                                     Tel: +258 21 415 200

Grant Thornton UK LLP

   Philip Secrett | David Hignell| Jamie Barklem   Tel: +44 20 7383 5100

Shore Capital Stockbrokers

   Jerry Keen | Toby Gibbs                                          Tel: +44 20 7468 7964

This information is provided by RNS

The company news service from the London Stock Exchange

END

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