Latest assays continue to underpin strong economic outlook for the Caula vanadium-graphite project in Mozambique; Maiden vanadium Resource due within weeks
More Wide, High-Grade Vanadium Results at Caula
- Drilling returns more high-grade vanadium and graphite over extensive widths with significant intersections close to surface
- Assays show grades of up to 1.02% Vanadium (V2O5) and 24.2% Total Graphitic Carbon (TGC)
- The vanadium is hosted in a roscoelite-mica mineral within the graphitic schist; This is expected to result in simpler and cheaper vanadium liberation than in traditional magnetite-vanadium deposits
- Mustang targeting first cashflow from stage 1 vanadium and graphite trial mining in first half of next calendar year
- Latest results include:
o MODD014: 22m at 0.31% V2O5 and 16.2% TGC from 17m
o MODD014: 6m at 0.41% V2O5 and 19.8% TGC including
-- 74m downhole at 1.02% V2O5 & 96 m downhole at 24.2% TGC
o MODD015: 14m at 0.36% V2O5 & 16.7% TGC from 17m, including
-- 18m downhole at 0.71% V2O5 & 19m and 24m downhole at 24.2% TGC
o MODD016: 4m at 0.24% V2O5 and 11.2% TGC and average including
-- 36m downhole at 0.51% V2O5 and 20 m downhole at 15.6% TGC
o MODD017: 6m at 0.31% V2O5 and 17.0% TGC
8m at 0.4% V2O5 and 14.2% TGC average including
-- 79m downhole at 0.63% V2O5 and 114 m downhole at 24.2% TGC
The latest results, which come from drilling Fence Line 3, are considered important because the significant widths and grades continue to underpin the strong economic prospects for Caula, particularly at current market prices for both commodities.
Mustang drilled diamond holes MODD014, MODD015, MODD016 and MODD017 close to the previous five holes drilled in 2016 which resulted in the 2017 JORC Inferred Mineral Resource (at 6% cut off grade) of 5.4Mt at 13.0% TGC for 702,600 tonnes of contained graphite. (see Note below)
Following initial work on Caula's graphite, recent laboratory analysis also tested for V2O5 (vanadium pentoxide) which led to the discovery of high-grade vanadium mineralisation within the Caula-ore.
In light of these results, Mustang expects to complete a maiden JORC-compliant vanadium resource in coming weeks followed by feasibility studies. It aims to undertake a fast-track development to stage 1 vanadium and graphite cashflow from trial mining in the first half of next calendar year.
The Caula vanadium mineralisation is found within a roscoelite mica (see Figure 1 in link below) and has a strong correlation with the high-grade graphite at Caula. Vanadium-bearing micas such as those at Caula are typically liberated using less energy and fewer processing steps than magnetite-vanadium deposits found in the South African Bushveld complex (Glencore-Rhovan, Bushveld Minerals-Mokopane) and Western Australia (e.g. Australian Vanadium-Gabanintha, KRC-Speewah). This creates potential for higher V2O5 concentrate grades and lower overall operating costs.
Mustang Managing Director Dr. Bernard Oliver said: "The outlook for Caula continues to go from strength to strength with every step of the Scoping Study.
"Caula was already emerging as an outstanding graphite project with both high grades up to 26% TGC and ~55% large to super jumbo flakes. The combination of high-grade vanadium and the extremely attractive graphite metallurgical results with significant intersections and grades obtained close to surface, highlight the potential for low operating costs based on the production of two commodities which are enjoying robust prices and strong growth prospects.
Assay results from MODD014 include outstanding intersections including 22m mineralised at 0.31% V2O5 average and 16.3% TGC average from 17m and includes the following high-grade intersections:
- 74m downhole at 1.02 % V2O5
- 71m and 75m downhole at 0.98 % V2O5
- 96 m downhole at 24.2% TGC
- 52 m downhole at 23.9% TGC
Assay results from MODD015 include intersections up to 0.71% V2O5 and 24.2% TGC including 14m mineralised at 0.36% V2O5 average and 16.7% TGC average from 17m, including:
- 18m downhole at 0.71 % V2O5
- 25m downhole at 0.70 % V2O5
- 19 m and 24 downhole at 24.2% TGC
- 23 m downhole at 23.3% TGC
Assay results from MODD016 include outstanding intersections up to 0.51% V2O5 and 15.6% TGC with an average grade of 0.26% V2O5 and 8.6% TGC over 14m from 35m downhole including:
- 36m downhole at 0.51 % V2O5
- 21m and 35m downhole at 0.42 % V2O5
- 20 m downhole at 15.6% TGC
- 36 downhole at 12.4% TGC
Assay results from MODD017 include outstanding intersections up to 0.63% V2O5 and 24.2% TGC with an average grade of 0.18% V2O5 and 7.06% TGC over 117m from 14m downhole including:
- 114m downhole at 0.92 % V2O5 79m downhole at 0.63 % V2O5
- 16m and 58m downhole at 0.51 % V2O5
- 114 m downhole at 24.2% TGC
- 58 m downhole at 21.30% TGC
Note: Refer to ASX Announcement dated 1 December 2017
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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