Mustang Resources shares ride higher after fourfold increase in graphite resource
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11:22 24 Jul 2018
This establishes Caula as one of the highest grade graphite projects in the world with >60% of its products in the large to super jumbo flake category.
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The company's shares are trading about 11% higher intra-day, at 2.1 cents. Mustang Resources Ltd (ASX:MUS) has taken another key step towards development with the completion of an upgraded graphite resource for its Caula Vanadium-Graphite Project in Mozambique.
The resource, which is all in the measured category, is 21.9 million tonnes at 13.4% total graphitic carbon (TGC) (8% cut-off) for a total of 2,933,100 tonnes of contained graphite.
Importantly, the upgraded resource represents a 317% increase in size from 702,600 tonnes of contained graphite to 2,933,100 tonnes of contained graphite.
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Mustang’s metalurgical testwork has confirmed exceptional quality graphite with more than 63% of cumulative proportion in large to super jumbo flakes sizes and excellent concentrate grades of more than 97% TGC.
Mustang managing director Dr Bernard Olivier said: “This is an exceptional result, Caula’s Graphite mineral resource has not only increased over 300% but the entire resource is now in the measured category.
“The combination of the upgraded graphite mineral resource and our recently announced maiden vanadium mineral resource now paves the way for the fast-tracked development of the Caula project into production.” READ: Mustang Resources shares rise after revealing maiden vanadium resource in Mozambique
Last week, Mustang revealed a maiden JORC resource of 22 million tonnes at 0.37% vanadium pentoxide (V2O5) for the Caula Vanadium-Graphite Project.
The project is located within a world-class graphite province and there is significant potential to expand the graphite and 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.
Mustang’s scoping study for the Caula Vanadium-Graphite Project is due in Q3 2018.
