Ann: Maiden Mineral Resource Estimate & JORC Mineral Resource, page-4

ASX ANNOUNCEMENT & MEDIA RELEASE
22 APRIL 2020
MAIDEN MINERAL RESOURCE ESTIMATE CONFIRMS MASSIVE HIGH GRADE
DISCOVERY AT KOKO MASSAVA, CORRIDOR CENTRAL PROJECT IN MOZAMBIQUE
KEY HIGHLIGHTS
Maiden Mineral Resource Estimate (MRE) for Koko Massava prospect completed
and hereby announced. A total JORC Mineral Resource of 1,423 Million Tonnes @
5.2% total heavy mineral (THM) using a cut-off grade of 4% THM (refer Table 1,
page 3), comprising:
• an Indicated Mineral Resource of 289 Mt @ 4.9% THM
• an Inferred Mineral Resource of 1,133 Mt @ 5.3% THM
A significant Exploration Target at Koko Massava was also identified (refer Table 2,
page 4).
The entire MRE lies outside of local townships and villages (refer Figure 1). It is
inclusive of 32 composite mineralogy samples processed by CSIRO.
Significant tonnages at grades well above cut-off (refer Figure 4 - Grade Tonnage
Curve):
• 593Mt @ 6.2% THM (5.0% cut-off)
• 252Mt @ 7.3% THM (6.0% cut-off)
• 113Mt @ 8.3% THM (7.0% cut-off)
A valuable heavy mineral (VHM) assemblage comprising Ilmenite 42%, low Ti
Ilmenite/titanomagnetite 7%, Zircon 2%, Rutile 1%, Leucoxene 1% and Monazite
0.2%. Several zones show sub-sets of higher VHM assemblage indicating further
potential for optimisation. Significant proportions of titanomagnetite is not
included within the valuable heavy mineral assemblage.
Next steps include bulk sample geometallurgical test work to characterise
processing performance of the heavy mineral sand (HMS), including process
flowsheet development and the preparation, recovery and quality of potential
ilmenite and zircon products. Further assaying of titanomagnetite for vanadium
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
content will also be undertaken.
The Company has commenced engagement with Mocambique STT Sociedade
Anónima, the organization promoting the Chongoene Development Corridor, which
has reached Bankable Feasibility phase and comprises a 150Mt per annum
capacity deep water port approximately 40 km south of Koko Massava, linked by a
Cape gauge railway to the existing Maputo-Zimbabwe line. This proposed railway
is adjacent to the Corridor Central and Corridor South projects (refer Figure 7).
The Company will now engage with potential Offtakers as the size, grade and
mineralogy of the resource has been defined by this MRE.
Refer to MRG Metals’ website for the MRE Executive Summary
(www.mrgmetals.com.au)
Chairman’s comment “MRG’s discovery of the Koko Massava deposit represents the most
significant HMS discovery in at least the last decade. This is a major achievement for MRG and not
only underpins the value of the Company but also its potential place in the global titanium
feedstock industry going forward.
At Koko Massava we drilled 82 aircore holes (refer ASX announcement 29 November 2019)
supported by 77 auger holes (refer ASX announcements 19 August 2019 and 21 November 2019),
to identify our significant Maiden JORC Mineral Resource and will underpin our future exploration
and development plans. As previously announced, our strategy is to aggressively seek additional
high grade/high value per ton resource, rather than to simply add tonnage. The potential to
achieve this appears to be very high across the Corridor tenements and could result in a multi
decade asset with built-in potential to optimise operations in the early years to enhance project
returns.
While MRG is focused on the next steps towards a mineral development at Koko Massava, our
auger and aircore drilling exploration programs are also succeeding strongly at Poiombo and
Nhacutse targets. We still have a number of high calibre airborne radiometric and magnetic
targets to move on to in the Corridor Central and Corridor South tenements. We also have
tenement applications pending. Koko Massava is now our foundation asset on which to build and
with early success at Poiombo and Nhacutse we see the possibility of expanding Koko Massava into
a regional resource of massive scale and significant grade THM. We are excited about our future
and thank our Shareholders for their support.”