Importantly, assays from the diamond drill hole show grades of up to 23.7% total graphitic carbon (TGC) and 0.68% vanadium.
Intersecting this mineralisation 7.5 kilometres from the main Caula mineralisation further establishes this graphite and vanadium project as world-class.
Shares were 12% higher at 2.8 cents in early trade.
Mustang’s new recently outlined strategy is to focus on fast-tracking a dual graphite and vanadium development to deliver first cash flow in mid-2019.
Diamond drill hole hits 99-metre intersection 7.5 kilometres to the south
Assays from the drill hole show 99 metres at 12.56% TGC and 0.34% vanadium from 16 metres down hole.
High-grade intersections included 53 metres at 15.06% TGC and 15 metres at 0.46% vanadium.
This southern extension clearly supports the potential for increasing the size of the deposit
Mustang’s managing director Dr Bernard Olivier said: “The impressive results from diamond drill hole MODD010 located approximately 7.5 kilometres south of the “Caula-Hinge” and the recently announced MODD014 is further testimony to the overall potential of the Caula project.
“Although we are focusing our efforts on the main section of the Caula graphite and vanadium deposit, this southern extension clearly supports the potential for increasing the size of the deposit many times its current size.
“We expect to receive the assay results from the remaining drill holes shortly and will combine the results into a comprehensive market update once received.”