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Mustang Resources increases high-quality ruby consistency in Mozambique

Shares are up more than 33% to $0.032 on strong volume of more than 24 million.
Montepuez rubies
A selection of high-quality rubies recovered in January and now part of the sale inventory

Mustang Resources Ltd (ASX:MUS) is achieving consistent production of high-quality gems from the Montepuez Ruby Project in Mozambique.

Improvements have been made to the processing plant to optimise efficiency and reduce processing costs.

Average grades have increased by more than 10% from October 2017 compared with the total average grade achieved from previous bulk sampling.

Montepuez strategy is on track

The results demonstrate that Mustang’s strategy to establish Montepuez as a world-class ruby project with consistent production and exploration upside is on track.

Bernard Olivier, managing director, said: “Having spent time on site in recent weeks, I am very pleased to report that exploration, bulk sampling and processing activities on the Montepuez Ruby Project are meeting our targets.

“These results reflect the skills and commitment of Mustang’s motivated and experienced operational team.

“The quarter four 2017 plant optimisation program is generating the intended results with further improvements and upgrades now being implemented.

“The overall results demonstrate that Montepuez is highly prospective and technically sound.”

READ: Mustang Resources appoints new leadership with gemstone and graphite experience

Mustang is implementing further processing, sorting and grading improvements to increase overall efficiencies.

Average grades increase

Ongoing processing of bulk sample material during the December quarter of 2017 saw 80,658 tonnes processed with 29,983 carats recovered at an average grade of 0.37 carats per tonne.

Since 1 January 2018, 17,025 tonnes have been processed with 7,495 carats recovered at an average grade of 0.44 carats per tonne.

As at 31 January the company had inventory available for sale of 302,028 carats.

Mustang’s ongoing exploration activities are also delivering positive results.

Additional gravel bed targets

The exploration, pitting, trenching and bulk sampling program has extended the gravel bed extension from 3.3 to 4.2 kilometres.

This work has identified additional gravel bed targets over a 3 kilometre-long river and associated tributaries system.

Montepuez Ruby Project is in northern Mozambique.

During the remainder of this quarter, exploration will focus on identifying further high-grade targets for large-scale bulk sampling excavation and processing.

It also aims to further delineate the dimensions and ruby distribution of the deposit, which remains open in all directions.

READ: Mustang Resources targeting June quarter DFS at Caula graphite project

Mustang has recently completed a diamond drilling campaign which will underpin the concept study on its 80%-owned Caula Graphite Project also in Mozambique.

The study is on track for completion in the June quarter, paving the way for Mustang to start a definitive feasibility study.

View full MUS profile View Profile

Mustang Resources Ltd Timeline

November 16 2017

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