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Mustang Resources reveals high-grade maiden graphite resource

Exploration drilling is scheduled to resume in November 2017.
Map of Mozambique with pin marking the country
The mineralisation remains open in all directions

Mustang Resources (ASX:MUS) has revealed a maiden JORC resource estimate for its 80% owned Caula graphite deposit located in Mozambique.

With a resource grade of 13.0% total graphitic carbon (TGC), the maiden resource confirms Caula as one of the highest grade graphite deposits in the world.

The Inferred resource totals 5.4 million tonnes grading 13.0% TGC for 702,600 tonnes of contained graphite.

The result, combined with previous metallurgical tests, demonstrates that Caula is a prime candidate to supply the rapidly-growing expandable graphite and lithium battery market.

Significantly, the Caula deposit is located along strike from Syrah Resources’ (ASX:SYR) world-class Balama graphite project in Mozambique.

Christiaan Jordaan, managing director, commented

“This result is based on just a small portion of the total target area.

“The mineralisation remains open in all directions and there is excellent potential to grow the deposit significantly with a third round of drilling, particularly along the large-scale geophysical anomaly which has been defined.

“We will start this follow-up drilling in the next few weeks.”

Caula deposit details

The maiden Inferred mineral resource consists of a:

- Oxidised zone of 2.4 million tonnes at 10.9% TGC for 261,600 tonnes graphite; and a
- Fresh zone of 3.0 million tonnes at 14.7 %TGC for 441,000 tonnes graphite.

Metallurgical testwork at Caulda completed earlier in the year indicates that mineralisation is amenable to standard beneficiation processes.

The fresh sample achieved a total graphitic content (TGC) recovery of 96% and the oxide sample received a TGC recovery of 87%.

READ NOW: Mustang Resources confirms top tier graphite project with test results

More than 55% of the fresh graphite assayed has been classed as jumbo and large flake.

Optimisation work is underway to simplify flowsheet and enhance large and jumbo flake product recoveries even further.

Exploration to resume to expand resource

A new program of diamond and reverse circulation drilling has been planned to test for both up-dip and down-dip extensions to the Caula deposit.

This drilling is scheduled to commence in November 2017.

Additionally, there is also strong potential to define high-grade graphite mineralisation in the much larger project area.

The Caula discovery is located at the northern end of a suite of large-scale geophysical (TEM) anomalies that extend over an 18-kilometre strike length within Mustang's tenements.

The larger-scale TEM anomaly has received minimal drilling to date and Mustang has already commenced planning to drill-test this large-scale TEM target.

READ NOW: Mustang Resources completes inaugural rough ruby tender

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Mustang Resources Ltd Timeline

Article
November 16 2017

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