Ann: Mustang Processing Ramp Up Nearing First Sales, page-88

I've been digging more info to try to understand potential of our ruby assets, I found SRKreport for our neighbour GEM, is very useful to get a rough idea about our potential.

Any rough greater than 2.5ct in weight and of desirable shape, clarity and red color  with no or very few inclusions is a Premium Ruby, average price is US$800/ct.
Less than 2.5ct ruby, average price US$200/ct.

Then GEM's quarterly report for high quality rubies auctions, yielded over US$600/ct.

It's reasonable to expect average price for high quality ruby to be in the range of US$200 - 800/ct.



five broad quality categories:
 Premium Ruby: Any rough greater than 0.5g (2.5ct) in weight and of desirable shape, clarity and red colour, with no or very few inclusions.

 Ruby: Less than 0.5g in weight, but of a desirable shape, clarity and red colour. Rough 0.5g or more in weight where the rough is either included or pink in colour which affects either recovery or appearance of the finished gem.

 Low Ruby: Gemstones with the required pinkish red to red colour, but translucent clarity with significant inclusions.

 Corundum: Opaque non-gem quality rough  Sapphire: Generally very light pink to pink gemstones of variable shape and clarity. May contain orange and off colour gems.

The price in real terms in high quality auctions are capped at $800 /ct for premium and $200 /ct for ruby by 2020

SRK has not undertaken a detailed price analysis, but has relied on the forecasts from the Company in this regard. The LoMp assumes that overall production from all sources will average a rate of 1,330 ktpa. Over the LoM, based on the current indicated Resource, it is planned to produce 431.0 Mct, of which 5.8 Mct are Premium ruby and will generate USD5,959 M in gross revenue.

Prices set in the LoMp financial model for 2015-16 are quite conservative compared to the Company’s projected prices used in the financial model, being much lower than prices that have already been achieved in both sales in high quality and low quality auctions.

The weighted average price achieved in the December auction was $689 /ct which is higher than the premium price used in the model for 2015-16. The increase in real term prices after 2016, reflects the investment being made in marketing coloured gemstones and gradual increase in awareness of the quality of Mozambiquan Rubies. The increase closes the gap between actuals and the forecast steadily over the next 5 years.
The price in real terms in high quality auctions are capped at $800 /ct for premium and $200 /ct for ruby by 2020 as the Company believes these prices are sustainable in the longer term.



GEM Mugloto, secondary deposit, grade 3.1ct/t, in line with the range 0.1 - 5ct/t for secondary deposit.



https://xmbl.files.wordpress.com/2015/07/u6362_mrm_cpr_mining_report_final_v3a_clean.pdf