Edison Report Retraction of Statements
"Based on applying peer-group in-situ resource multiples to Caula's 2,933kt of contained graphite (24 July 2018 resource update) and 81.6kt of contained vanadium (20 July 2018 maiden resource update), we would value the Caula graphite resource at US$27.5m (A$37.5m) and the vanadium resource at US$16.8m (A$22.9m) for a total valuation for Caula of US$44.2m (A$60.3m). This does not take into account any potential upside should further drilling continue to increase the scale of this project."
"On average, graphite exploration and development companies trade at a multiple of US$9.36 per tonne of in-situ graphite contained in measured and indicated resources while vanadium companies trade at an average of US$205.49/t per tonne of in-situ vanadium in measured resources.
Applying these multiples to Caula's graphite and vanadium resources respectively gives us a valuation for graphite of US$27.5m (A$37.5m), and for vanadium of US$16.8m (A$22.9m)."
Mustang has informed Edison of these discussions and requested that the report be updated and republished. Investors should not rely on the retracted information as a basis for an investment decision in relation to Mustang's shares.
Mustang Resources Managing Director Bernard Olivier Commented "Unfortunately some sections of the report by Edison, a globally recognised independent research company with more than 420 corporate clients and more than 1,000 published mining sector research reports, were not in strict compliance with clause 51 of the JORC Code 2012. Edison have confirmed that they will publish an updated note on their website shortly. Mustang remains encouraged by the exceptional recent results from the Caula Vanadium-Graphite Project in Mozambique and look forward to providing the market with an update on the project shortly."
About Mustang Resources Ltd
New Energy Minerals Ltd is an ASX-listed company (ASX:MUS) 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 New Energy Minerals announced a maiden vanadium mica-hosted 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 vanadium and graphite, both key components used in battery production.
Mustang Resources Ltd