Over 10,000 tonnes of gravel has already been delivered to the Montepuez processing plant from Pit NT01 within Licence 8245L.
The licence is highly strategic because it borders the existing Montepuez licence areas on one side and the lucrative ruby project owned by London-listed Gemfields PLC (LON:GEM) on the other.
Importantly, it lies along the south-east, north-west ruby mineralisation trend, which also transects the adjacent Gemfields licences.
A February 2017 site visit by Mustang consultant confirmed that artisanal miners are recovering high-quality rubies from this licence area.
Bulk sampling at 8245L
Initial manual test pitting by Mustang across a broader area of 8245L has highlighted the high-grade potential of the area.
11.75 carats comprised of 9.45 carats ruby and 2.30 carats corundum was recovered from 2,726 kilograms of gravel.
Pending the finalisation and execution of the shareholders and loan agreements, Mustang will own a 65% interest in the 8245L.
In consideration, 30 million Mustang shares escrowed for 24 months have been issued and $100,000 cash has been paid to the vendor.
Processing now ramping up
Recently Mustang commissioned the upgrade of the processing plant at Montepuez, which has been successful and processing rates are now ramping up.
Given this progress, Mustang is confident that it will achieve its targeted processing rate of 1,500 tonnes a day within weeks.
The increasing throughput means Mustang is also on track to achieve its target of building a ruby inventory of 200,000 carats ahead of its planned initial auction in October this year.
This will provide an opportunity to increase the volume of rubies available for sale in the October auction.