Fremantle, Australia, 21 July – Australian company Baobab Resources has set up a partnership with Southern Iron to drive the base metals and manganese project in Changara, Mozambique, the company said in a statement published Monday in Fremantle.
Following involvement in stages, at the end of the second of which Southern Iron will have a 50 percent stake in the partnership, which could reach 65 percent if Southern Iron funds an economic pre-feasibility study and 80 percent if its funds the definitive economic feasibility study.
Southern Iron will be the operator of the Changara project and Baobab Resources will carry out the initial mining phase, making use of its “experience and the logistical support it has in Mozambique.”
Activities are due to begin in September in Changara, a project which involves four mining licences covering an area of 525 square kilometres, next to the border with Zimbabwe.
The statement from Baobab Resources said that a geochemical analysis of an area of 380 square kilometres carried out in the last quarter of 2008 identified lead, zinc, manganese and copper.
Currently, Baobab Resources is focusing on an iron/vanadium7titanium project in Tete, covering an area of 632 square kilometres, next to the coal projects of Australia’s Riversdale Mining and Brazil’s Vale.
This project, called Chimbala, is due to have its economic pre-feasibility study concluded in mid 2011 and the definitive feasibility study finished by the beginning of 2013. (macauhub)