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Mustang Resources shares rise after revealing maiden vanadium resource in Mozambique

Published: 11:18 20 Jul 2018 AEST

vanadium symbol on elementary table
Shares are trading about 13% higher intra-day, at 1.7 cents

Mustang Resources Ltd (ASX:MUS) has revealed a maiden JORC resource of 22 million tonnes at 0.37% vanadium pentoxide (V2O5) for its Caula Vanadium-Graphite Project in Mozambique.

It is worth noting that this is in addition to Caula’s graphite resource of 5 million tonnes at 13% TGC (total graphitic content).

Mustang managing director Dr. Bernard Olivier said the combination of the vanadium and graphite resources shows Caula is rapidly emerging as a highly valuable project.

READ: Mustang Resources reveals further strong vanadium and graphite assays from Caula

Olivier added: “This is an exceptional result, with over 81,000 tonnes contained V2O5, particularly given that the entire JORC resource is in the measured category.

“With vanadium pentoxide prices running at more than US$40,000 per tonne (98% V2O5), the Caula resource translates to a highly valuable resource.

“Furthermore, the potential of the project is even greater as our vanadium is mica-hosted and associated with the graphite mineralisation and potentially far cheaper to extract and recover through two simple processing steps, compared with most vanadium projects, where the vanadium is located in a complex titaniferous magnetite ore body.”

The Caula Project is located within a world-class graphite province and there is significant potential to expand the maiden vanadium resource through ongoing exploration and drilling.

In the immediate vicinity of the Caula discovery, graphite mineralisation has now been defined over a 540-metre strike length.

This mineralisation is up to 230 metres wide and the depth is completely open-ended at the limit of the current drilling.

A new program of diamond and reverse circulation drilling has been planned to test for both up-dip and down-dip extensions to the Caula deposit in this area.

READ: Mustang Resources to merge ruby assets with Canadian-listed Fura Gems

Following the merger of its ruby interests with Fura Gems Inc (CVE:FURA), Mustang is now ideally positioned to become a leading vanadium and graphite company.

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