Date:Jul 25, 2018
Mustang Resources (ASX:MUS | FRA:GGY) has taken another major step towards development of its Caula vanadium-graphite project in Mozambique, unveiling an upgraded JORC-compliant graphite mineral Resource estimate.
The Resource, which is all in the Measured category, is 21.9Mt at 13.4 per cent total graphitic carbon (TGC) (8 per cent cut-off) for a total of 2,933,100 tonnes of contained graphite.
Significantly, this upgraded Resource represents a 317 per cent increase in the size from 702,600 tonnes of contained graphite (as estimated in December 2017) to 2,933,100 tonnes of contained graphite.
The Caula graphite Resource is subdivided into two zones:
Oxidised zone – 8.5 Mt at 13.4% TGC for 1,130,000 tonnes contained graphite (8% grade cut-off)
Fresh zone – 13.4 Mt @ 13.5% TGC for 1,803,100 tonnes of contained grapite (8% grade cut-off)
The Measured Resource:
Metallurgical testwork confirms exceptional quality graphite with more than 63 per cent of cumulative proportion in large to super jumbo flakes sizes (>180μm) and excellent concentrate grades of more than 97 per cent TGC.
It should be noted it is still early stages here, so investors should seek professional financial advice if considering this stock for their portfolio.
The Caula graphite and vanadium project sits along strike from Syrah Resources’ (ASX:SYR) world-class Balama graphite project, which is projected to supply 40 per cent of the flake graphite market by 2020. There is also substantial scope here for further Resource growth through exploration.
A scoping study on Caula is set to be completed in the third quarter.
Caula’s recently modified and improved flowsheet design enables integrated vanadium and graphite extraction. MUS is now looking at developing a low-cost high-grade graphite product, with the high head-grade and simplified flowsheet presenting even more substantiation for its scoping study.
Following the merger of its Montepuez ruby project with Fura Gems (TSX:FURA), MUS is in an excellent position to emerge as a leading vanadium and graphite company.
Mustang Managing Director, Dr. Bernard Olivier, said: “This is an exceptional result. Caula’s Graphite Mineral Resource has not only increased over 300% but the entire resource is now in the Measured category.”
“The combination of the upgraded Graphite Mineral Resource and our recently announced maiden Vanadium Mineral Resource now paves the way for the fast-tracked development of the Caula project into production,” Olivier added.
