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Mustang Resources' high-grade drill results strengthen plan to develop Caula graphite-vanadium project

Assays show grades of up to 24.2% total graphitic carbon (TGC) and about 1% vanadium.

Picture of graphite
High graphite grades, substantial widths and jumbo flake point to promising graphite-vanadium project

Mustang Resources Ltd (ASX:MUS) has released high-grade results over extensive widths from drilling at its Caula Graphite and Vanadium Project in Mozambique.

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.”

Two-stage development

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.

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