Date:May 2, 2018
Mustang Resources Ltd (ASX:MUS) is targeting first phase production of vanadium and graphite from its Caula project in Mozambique in the first half of 2019.
This makes Mustang one of the closest vanadium-graphite developers to achieving actual cash flows.
What’s more, the economic outlook of the project continues to improve as new drilling results have confirmed near-surface vanadium intersections together with high-grade and quality graphite.
Cheaper to process
The vanadium mineralisation is found in a mica material, which is cheaper to process than magnetite-type deposits.
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 in excess of 55% large to super jumbo flakes.
“The combination of high-grade vanadium and extremely attractive graphite metallurgical results with significant intersections and grades obtained close to surface, highlight the potential for low operating costs.
“This is based on the production of two commodities which are enjoying robust prices and strong growth prospects.”
Latest results from drilling of Fence Line 3 are considered important because they have revealed significant widths and grades with many intersections close to the surface.
