Mustang well on track to hit its target of 200,000cts ahead of maiden auction in OctoberSydney, Sep 4, 2017 AEST (ABN Newswire) - Mustang Resources (ASX:MUS) (OTCMKTS:GGPLF) is pleased to announce that preparations for the maiden auction of its rubies in October are firmly on track, with its inventory rising to 176,522 carats.
The latest increase follows a record month of production in August, during which the plant at the Montepuez project in Mozambique delivered 15,613 carats from the 34,561 tonnes processed.
The successful ramp-up of the processing plant means Mustang is comfortably within reach of its 200,000-carat target for its inaugural rough ruby tender, which is scheduled for 27 - 30 October 2017 in Port Louis, Republic of Mauritius.
Mustang Managing Director Christiaan Jordaan said the Company had also received strong inquiries and support from the industry in respect of the tender.
"We have been overwhelmed by the interest shown by leading ruby buyers from around the world," Mr. Jordaan said.
He said the ramp-up of the processing plant had been highly successful, as shown by the record production recorded in August.
"We had some initial challenges with the commissioning and ramp-up, however after resolving these teething problems we have made outstanding progress and can now demonstrate the impressive production capacity of Montepuez."
Mr. Jordaan said Mustang expected to generate strong ongoing interest in the tender when he attends trade fairs in Bangkok and Hong Kong in coming weeks.
"The interest in our tender from major rough ruby buyers has been outstanding and they are highly supportive of our entry into the market as a ruby supplier," he said.
"We are also delighted to see the strong prices which Gemfields received at its latest auction in June this year, which was a record for them and for Mozambique.
"Gemfields netted US$54.5 million from 900,000cts at an average of US$61/ct and the number of participants was higher than previous auctions.
"The feedback we have received is that demand for rubies exceeded supply in many grades, which augurs very well for our forthcoming tender."
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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