The concept study is on track for completion in the June quarter, paving the way for Mustang to commence the definitive feasibility study (DFS).
This latest infill and extension drilling, comprising 11 holes for 1400 metres, is aimed at increasing and upgrading the existing Inferred JORC Compliant Mineral Resource.
This will build on metallurgical testing conducted in mid-December.
Resource currently stands at 5.4 million tonnes
The resource currently stands at 5.4 million tonnes at a 6% cut-off grade at 13% total graphitic carbon (TGC) for 702,600 tonnes of contained graphite.
This includes high-grade components of up to 26% TGC.
The latest drilling program has increased the company’s confidence in the project and the continuity of the defined graphite mineralisation.
Satisfactory results could result in fast-tracking of DFS drilling
Bernard Olivier, managing director, said: “The drilling continues to demonstrate that Caula is emerging as a world-class graphite deposit.
“In light of what we have observed, we are eagerly awaiting the assay and metallurgical test work results, which will all form part of the project’s concept study.
“Pending the results of the concept study, Mustang is committed to fast-tracking the development of Caula.”
This will incorporate commencing the definitive feasibility stage of resource drilling in the June quarter of 2018.