Mustang Resources (ASX:MUS) is on track to offer more than 300,000 carats at its maiden auction next month, after a highly successful production ramp-up at its Montepuez Ruby Project in Mozambique.
Interestingly, this is well over the company’s initial target of 200,000 carats.
The substantial growth in the inventory stems from record production rates at Montepuez and strong results from the company’s artisanal miner development program.
Mustang’s inventory is now set to comfortably exceed 300,000 carats by the time of its maiden auction, which will be held over four days starting 27 October in Port Louis, Mauritius.
The company is currently fast-tracking its work program at Montepuez, with extensive secondary deposits discovered and low-cost bulk sampling well underway.
Mustang’s shares were last trading 10% higher intra-day, at $0.099.
Rising ruby demand
Providing support for the ruby sale, Mustang’s neighbour Gemfields’ recent auction received strong prices netting US$54.5 million from 900,000 carats at an average of US$61 per carat.
The auction attracted more participants than usual, with this demand boding well for Mustang's pending auction.
Mustang’s planned auction will define the value range for rubies within each of its grading categories and will be a key indicator of the long-term commercial viability of the Montepuez Ruby Project.