Bulk sampling, processing and sales activities set to increase in coming months
Discovery of Significant New Ruby Deposit at Montepuez
- Discovery of new ruby-bearing gravels within Mustang's Montepuez Ruby Project in Mozambique
- New ruby-bearing gravels located 3.5km directly south-west from Mustang's 200tph processing plant
- A total of 29,069.1 carats were recovered from the processing of 43,940m3 (~68,107 tonnes) of stockpiled material at Montepuez during Q1 2018 with:
o An average grade of 0.42 carats/tonne achieved for the quarter, 13.5% higher than Q4 2017; and
o A total of 329,309 carats of rubies in the Company's available-for-sale inventory as at 10 April 2018
- Preparations underway for the re-commencement of bulk sampling activities as the rainy season in Mozambique draws to an end
The discovery was made during an extensive exploration and test pitting campaign undertaken at Montepuez during the March 2018 quarter which resulted in the development of 196 test pits during the period. The program has returned a host of positive results which will be followed up in the new exploration field season.
The new deposit was discovered in an area referred to as Block D, located on Licence 8955C, approximately 3.5km to the south west of the Company's 200tph processing plant (see Figure 1 in link below). Mustang is further encouraged by the confirmation of ruby bearing gravels in Block A, B and C, confirming the extension of ruby mineralisation extending from the LM bulk sampling pits.
Preparations have now commenced to restart the exploration bulk sampling program at Montepuez as the rainy seasons draws to an end, and the newly-identified Block D will form part of the upcoming bulk sampling program.
Q1 Ruby Operations Update
During Q1, a total of 29,069.1 carats were recovered from the processing of 43,940m3 (68,107 tonnes) of material at Montepuez, resulting in an average grade for the quarter of 0.42 carats/tonne (see Note below).
The Q1 2018 recovery grades were approximately 13.5% higher than Q4 2017, while tonnes processed were approximately 15% lower. In Q4 2017, approximately 80,658 tonnes were processed with 29,983 carats recovered at an average grade of 0.37 carats/tonne.
Heavy rains during the quarter adversely affected operations and processing of the stockpile.
Preparations have now commenced to restart the exploration bulk sampling program as the rainy seasons draws to an end.
Mustang's Montepuez Ruby Project is located in the heart of the globally significant Montepuez gem-field, adjacent to the advanced mining operations of Gemfields (JSE: PGL subsidiary) and early-stage exploration assets of Fura Gems (CVE:FURA) (see Figure 2 in link below).
Mustang's Managing, Director Dr. Bernard Olivier, said: "The discovery of the Block D ruby-bearing gravels and the success of our ongoing exploration activitites continue to show the significant prospectivity of the Montepuez Ruby Project. When combined with the recent initial success of our newly-implemented sales and marketing strategy, we are confident that we can continue to steadily build value around this high-quality asset - which is strategically located in the heart of the Montepuez gem-field, currently the world's leading supply source of rubies."
Note: The stated grade is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource under the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code (2012)"
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About Mustang Resources Ltd
Mustang Resources Limited (ASX:MUS) (FRA:GGY) is an ASX listed company focused on the development of the Caula Vanadium-Graphite Project in Northern Mozambique, located along strike from the Syrah Resources Ltd (ASX:SYR) Balama Project. In July 2018 Mustang announced a maiden vanadium JORC Measured Resource for Caula of 22Mt at 0.37% V2O5 for 81,600 tonnes of contained vanadium pentoxide. The Company concurrently announced a 317% increase in its JORC Graphite Resource to 21.9Mt at 13.4% Total Graphitic Carbon ("TGC") (8% cut-off), for a total of 2,933,100 tonnes of contained Graphite, all in the measured category.
The Company has a highly experienced board and management team with a 15-year track record of investment and successful project development in Mozambique and the Africa region. With the aim to become a key provider of graphite and vanadium, both key components used in battery production, the company currently has a scoping study underway, which is due for completion in Q3 2018.
Visit the Mustang website at http://www.mustangresources.com.au for more information.
Mustang Resources Ltd
Fura Gems Inc.