Ruby inventory hits 120,000cts; Bulk sampling confirms new ruby discovery; On-track to accumulate 200,000cts for initial auction in OctoberSydney, July 28, 2017 AEST (ABN Newswire) - Mustang Resources (ASX:MUS) (OTCMKTS:GGPLF) is pleased to provide the report on its activities during the June Quarter 2017.
MONTEPUEZ RUBY PROJECT, MOZAMBIQUE
- Mustang firmly on track for first sale of 200,000cts in October, with inventory reaching 120,000cts at Quarter-end
- 71% increase in ruby inventory over the June Quarter owing in part to the success of the upgraded processing plant at Montepuez, which is expected to achieve full operating capacity by the end of July
- Initial bulk sample confirms significant new ruby discovery on recently acquired licence:
o Shallow secondary deposit, with initial bulk sample of 5,692m3 delivering 4,445 cts of gem quality rubies
o Consistent recovery of stones classed in the special/premium category
o Extensive secondary ruby mineralisation proven over 2,200m strike (open ended)
BALAMA GRAPHITE PROJECT, MOZAMBIQUE
- Subsequent to the end of the quarter metallurgical tests have produced high-grade concentrates (>95% TGC) and exceptional recoveries (96% recovery from fresh rock composite sample) from the Caula Graphite Project
- More than 55% of the fresh graphite assayed has been classed as Jumbo and Large Flake (46% classed as Jumbo and Large Flake for fresh and oxide composites combined)
- Results demonstrate Caula's potential to be a low-cost supplier to the expandable graphite and lithium ion battery industries
- Appointment of highly experienced resource industry executive Peter Spiers as a Non-Executive Director
- New broker research issued by Independent Investment Research; Subsequent to the end of the quarter, Hartleys initiated research coverage
- $0.399m cash on hand at 30 June 2017
- Subsequent to the end of the quarter Mustang secured a $8.5m funding package from Arena Investors LP a leading institutional investor with more than US$600m assets under management
- Funding arrangement ensures that Mustang is fully-financed through to its first rough ruby tender of 200,000cts planned for October 2017
To view the full report with tables and figures, please visit:
About Mustang Resources Ltd
Listed on the Australian Securities Exchange, Mustang Resources Limited (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.
The Montepuez Ruby Project consists of three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields PLC in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.
The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.
Visit the Mustang website at http://www.mustangresources.com.au for more information.
Mustang Resources Ltd