TIDMBAO
RNS Number : 3133U
Baobab Resources PLC
15 October 2014
BAOBAB RESOURCES PLC
TEST WORK UPDATE
15 OCTOBER 2014
Metallurgical test work supports the viability of the
Pre-Feasibility Study process flow sheet
Baobab Resources Plc (AIM: BAO) ('Baobab' or the 'Company') the
exploration and development company focused on the Tete pig iron
and ferro-vanadium project ('Tete Project') in Mozambique is
pleased to provide an update on its bench and pilot scale
metallurgical test work.
HIGHLIGHTS
-- Direct reduction test work supports the viability of the 2013
Pre-Feasibility Study ('PFS') process flow sheet and has achieved
up to 65% metallisation using coarse iron concentrate and local
coal;
-- Optimisation trials testing the direct reduction
characteristics of pelletised iron concentrate and local coal has
returned significantly improved results of up to 93%
metallisation;
-- The higher metallisation and consistent sizing of pellets
would enhance kiln performance and furnace productivity, thereby
improving operating costs; and
-- Pilot trials have simulated a smelting operation where
melting is achieved and a titanium slag generated and removed. The
molten, vanadium bearing, hot metal is then refined to produce a
vanadium rich slag and a pig iron. The tests confirm the
following:
-- That the titanium can be readily separated from the iron as a
primary slag;
-- That the secondary vanadium slag recovery stage has also
proven successful, with in excess of 80% of the total vanadium
reporting to the vanadium slag;
-- The vanadium results are in line with global benchmark
operations in New Zealand and South Africa; and
-- The final pig iron product reports very low impurities and is
within commercial specifications.
Ben James, Baobab's Managing Director, commented: 'The results
to date not only confirm the chosen technology route for the Tete
Project in Mozambique, but have also identified areas where process
optimisation has the potential to significantly improve the already
robust economics of the 2013 PFS. In conjunction with various
potential partners, we have been closely assessing opportunities to
reduce capital and operating costs, thereby further mitigating
execution risk and improving investor returns.'
ENQUIRIES
Baobab Resources
+258 21 486
Ben James: Managing Director 404
Jeremy Dowler: Chairman +44 1372 450529
+258 21 486
Frank Eagar: Finance Director 404
Grant Thornton UK LLP
Nominated Adviser
Philip Secrett / David Hignell +44 20 7523
/ Jamie Barklem 8308
Shore Capital Stockbrokers
+44 20 7468
Jerry Keen / Toby Gibbs 7964
Tavistock
Financial Public Relations
+44 207 920
Emily Fenton / Nuala Gallagher 3150
ABOUT BAOBAB RESOURCES PLC
Baobab Resources is an exploration and development company
focused on the Tete pig iron and ferro-vanadium project in
Mozambique, in which the International Finance Corporation holds a
15% participatory interest. The Company has been listed on the AIM
of the London Stock Exchange (ticker BAO) since 2007.
DIRECT REDUTION & SMELTING TEST WORK PROGRAMME
BENCH SCALE DIRECT REDUCTION & SMELTING TEST WORK: CSIRO
During the course of the 2012-2013 Tete Project PFS and
subsequently in Q1 2014, the Company successfully completed a
series of bench scale reduction and smelting test work programmes
at the CSIRO laboratories in Australia. The test work trialled
Baobab's coarse, -6mm iron ore concentrate (both fresh and
oxidised) with thermal coal products from the Rio Tinto, Vale and
Minas Revuboe operations to test reduction/metallization and
smelting behaviours.
The direct reduction trials returned consistently high
metallization results and the smelting test work demonstrated that
the titanium could be readily separated from the iron and vanadium,
confirming the viability of the PFS flow sheet. Please refer to RNS
dated 11 April 2014 for a detailed summary of the CSIRO test
work.
BENCH & PILOT SCALE DIRECT REDUCTION TEST WORK: FLS &
MINTEK
Following on from the successful trials at CSIRO, the Company
entered into a second phase of more detailed test work. Two large
trenches straddling the Tenge resource block were excavated to an
average depth of two metres to enable the collection of a c.15
tonne bulk iron ore sample. A -8mm iron concentrate was generated
from the bulk sample at the Mintek laboratories in South Africa
and, along with local coal and carbonate samples, despatched to the
FLS laboratory in the United States of America to complete bench
and pilot scale direct reduction trials. Parallel bench scale test
work was completed at Mintek for quality assurance and control.
Trials achieved up to 65% metallisation, lower than the CSIRO
test work, but in line with the benchmark Highveld Vanadium and
Steel operation in South Africa and confirming the viability of the
PFS flow sheet design, albeit at a slightly higher operating cost.
Challenges were encountered with the quality and continuity of
batch specification of the local coal products and it is apparent
that some coal treatment (either partial charring or floatation)
will need to be incorporated in final plant designs.
Optimisation trials testing the direct reduction characteristics
of pelletised iron concentrate and local coal were also conducted
at FLS and Mintek. The test work returned significantly improved
results of 85% to 93% metallisation. Although the introduction of
pelletising to the flow sheet would increase capital requirements,
the consistent sizing and higher pellet grade (c.56% Fe as opposed
to the 51% Fe of the coarse concentrate), coupled with the
significantly higher metallisation achieved, would enhance kiln
performance and furnace productivity, thereby improving operating
costs.
PILOT SCALE SMETING TEST WORK: MINTEK
Pilot scale smelting trials were completed at Mintek
laboratories in South Africa to investigate the behaviour of
vanadium during smelting and subsequent oxidation treatment. The
trials were designed to simulate a smelting operation where melting
is achieved and a titanium slag generated and removed. The molten,
vanadium bearing, hot metal is then refined to produce a vanadium
rich slag and a pig iron.
Utilising a tilting furnace, c.45kg of pig iron product was
successfully produced, clearly demonstrating at scale that the
titanium can be readily separated from the iron as a primary slag.
In this initial phase of titanium slag production, in excess of 85%
of the total vanadium reported to the hot metal, which is in
accordance with the bench scale test work completed at CSIRO.
Seven 200g samples of pig iron were then subjected to vanadium
recovery test work using various additives and levels of
oxygenation to determine optimised conditions for two larger (3kg
and 0.5kg) tests to produce a sufficient amount of vanadium-rich
slag for subsequent characterisation. This secondary vanadium slag
recovery stage has also proven successful, with most samples
recording in excess of 95% of the available vanadium reporting to
the vanadium slag. These recovery results are in line with global
benchmark operations in New Zealand and South Africa. A final slag
of c.10% V2O5 was produced with additional optimisation test work
required to achieve the targeted 15% V2O5.
Chemical analysis of the final refined pig iron alloy product
returned an average grade of 99% Fe, with very low impurities,
which is significantly higher than that of standard commercial pig
iron specifications. Pig iron typically also contains a fixed
amount of carbon which can be added to the hot metal at the end of
the process to meet end user requirements. Assuming a final product
containing 4% carbon, the test work results indicate that the total
impurities would be less than 0.15% and the iron content of the pig
iron would be about 95%.
The information in this release that relates to Exploration
Results is based on information compiled by Managing Director Ben
James (BSc). Mr James is a Member of the Australasian Institute of
Mining and Metallurgy, is a Competent Person as defined in the
Australasian Code for Reporting of exploration results and Mineral
Resources and Ore Reserves, and consents to the inclusion in the
report of the matters based on the information in the form and
context in which it appears.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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