Obtala Resources Ltd Share News (OBT)

AIM-listed mineral development company Bushveld Minerals failed to impress investors with a resource update on its iron and tin projects in the Limpopo province of South Africa.The group reported that 184m tonnes of indicated and inferred high grade iron layer had been identified with the potential to be mined selectively.It stated that there had been a 12% increase in the P-Q zone resource from 674m tonnes to 752m tonnes whilst retaining the overall grade. Preliminary metallurgical test work on the high grade material further showed that the material could be crushed to 12mm or 6.0mm and densimetrically separated to yield concentrates of 49-50% iron as well as yielding titanium dioxide and vanadium pentoxide. Fortune Mojapelo, Chief Executive Officer of Bushveld Minerals, reported: "The identification and modelling of these individual stratigraphic layers within the P-Q Zone is an exciting development that provides an excellent base for mine planning as the stratigraphic layers have clear geological markers and would be easier to high-grade." In February 2011, Obtala Resources entered into an agreement to acquire a 50% interest in the issued share capital of Bushveld Minerals.Bushveld Minerals' share price was down 0.94% to 13.12p at 08:15 on Thursday. Obtala Resources' share price fell 1.47% to 16.75p at 11:38 on Thursday.MF