Assays show grades of up to 24.2% total graphitic carbon (TGC) and about 1% vanadium.
There were some outstanding isolated samples such as 125 metres at 14.1% TGC at a shallow depth of 17 metres.
Other features were multiple wide intersections of vanadium including 74 metres downhole at 1%.
High-grade jumbo flake graphite
Bernard Olivier, managing director, said, “Caula goes from strength to strength, as these new results show.
“We have very high graphite grades, substantial widths and a very significant proportion of large and jumbo flake sizes.”
Mustang fast-tracking graphite-vanadium project
Caula is being established as one of the world’s highest-grade graphite and vanadium projects.
READ: Mustang Resources flags the potential to produce vanadium concentrate at Caula Graphite Project
The project is within a world-class graphite province and there is significant potential to expand the maiden JORC inferred mineral resource of 5.4 million tonnes at 13% TGC.
Based on the company’s new strategy focused on fast-tracking a dual graphite and vanadium development, it expects to deliver first cashflow in the first half of 2019.
Vanadium assay results to be used in strategy report
Olivier said: “Now, in addition to the outstanding graphite mineralisation, we are establishing the presence of substantial vanadium mineralisation.
“We look forward to updating the graphite resource, including a maiden resource estimate for the vanadium.
“This will, in turn, form part of the concept study now underway at Caula.”
Mustang estimates that, subject to the final results of the concept study, it can fast-track the project development through a two-stage development strategy.
It is anticipated that this will deliver a marketable graphite and vanadium product in the first half of 2019 from Stage I.
Mustang plans to incorporate the average vanadium assay results of 0.42% vanadium over 125 metres at shallow depths into a revised graphite and vanadium development strategy.