Rapid ruby inventory growth; taking ~405,000cts to initial tender in October; Mustang secures 25-year tenure with award of first mining concessionSydney, Oct 27, 2017 AEST (ABN Newswire) - Mustang Resources Ltd (ASX:MUS) (OTCMKTS:GGPLF) provides the Company's Quarterly Activities Report.
MONTEPUEZ RUBY PROJECT, MOZAMBIQUE
- Inventory soars from 120,000cts at end of June quarter, 2017 to 352,000cts (as at 10 October 2017)
- Mustang to take ~405,000cts to its maiden public tender in October - more than double its original target
- More than 120 people from 42 leading global ruby buyers attending the inaugural tender in Mauritius (to take place, 27-30 October)
- Award of first mining concession (upgraded from the previous prospecting & exploration licence) gives Mustang security of tenure to undertake its planned processing plant extensions after the maiden tender
- Outstanding quarter means Mustang is firmly on track to achieve its key objective of becoming a leading global supplier of high-quality rubies through regular closedbid tenders
- Mustang plans to grow its ruby inventory rapidly to hold at least two tenders totalling one million carats in CY2018 and three tenders per year from CY2019
BALAMA GRAPHITE PROJECT, MOZAMBIQUE
- Caula confirmed as a Tier-1 project with more than half its graphite classed as jumbo and large flake
- Results show Caula's potential to be a low-cost supplier to the expandable graphite and lithium battery industries
- Mustang secured $8.5m funding package from leading institutional investor, ensuring it is fully-funded through to first ruby tender
- Updated broker research issued by Baker Young Stockbrokers (12 October 2017), with share price target of 21.5c
- $0.736m cash on hand at 30 September excluding undrawn convertible note facility at end of quarter
To view the full report, 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