Mozambique-focused Baobab Resources on Tuesday provided further information regarding the discovered sequence of carbonate rocks within just five kilometres of its Tenge/Ruoni iron-ore resource block and proposed pig iron and ferro-vanadium operation.

Carbonate is required as a flux in the iron making process to purge the metal of impurities and manage slag viscosity.

As the company's Chief Executive, Ben James, explained that the discovery reflected the unique and strategic position of its project, at the confluence of core iron and steel making commodities, namely iron ore, coal, power, water and now carbonate.

It means that Baobab can guarantee security of supply of that essential material.

Baobab's geological team had estimated an exploration target of 24.5m tonnes to 40.8m tonnes to a depth of 30m to 50m below surface.

The company anticipated operating cost savings of around $5 per ton of pig iron by quarrying rather than purchasing from suppliers. Reduced reliance on external sources and transport logistics will also have a meaningful impact on the smooth operation of the facility.

Shares of Baobab Resources ended the day flat at 13.88p.

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