CONCEPT STUDY DRILLING COMPLETED, INTERSECTS ADDITIONAL WIDE, SHALLOW ZONES OF GRAPHITE AT CAULA PROJECT
5 February, 2018
Results further underpin project concept study, which is due for completion in April 2018, paving the way for the DFS
- 11 further diamond drill holes completed as part of the current Concept Study on the Caula Graphite Project in Mozambique
- Concept Study infill and resource extension drilling campaign also aimed at further upgrading current JORC resource of 5.4Mt at 13% Total Graphitic Carbon (TGC) for 702,600 tonnes of contained graphite
- Wide graphite intersections in all 11 diamond holes drilled including:
- 86m from 57m to 143m downhole in MODD 014
- 68m from 44m to 112m downhole in MODD 018
- 62m from 6m to 68m downhole in MODD 019
- 59m from 5m to 64m downhole in MODD 032
- 55m from 35m to 90m downhole in MODD 031
- Previous diamond drilling at Caula returned spectacular grades up to 26% TGC with wide zones averaging more than 15% TGC
- Samples are being sent for assaying and metallurgical testwork Concept Study scheduled for completion in Q2 2018 followed by commencement of Definitive Feasibility Study (DFS).
Mustang Resources Ltd (ASX: MUS) is pleased to announce it has completed the diamond drilling campaign which will underpin the concept study on its 80%-owned Caula Graphite Project in Mozambique.
The concept study is on track for completion in Q2 this year, which will in turn pave the way for Mustang to commence the Definitive Feasibility Study.
This latest infill and extension drilling, comprising 11 holes for 1421m, is aimed at increasing and upgrading the existing Inferred JORC Compliant Mineral Resource, which stands at 5.4Mt (at a 6% cut-off grade) at 13% TGC for 702,600 tonnes of contained graphite, including exceptionally high-grade components of up to 26% TGC.
Mustang Resources Managing Director Bernard Olivier said the latest drilling program had further enhanced the Company’s confidence in the project and the continuity of the defined graphite mineralisation.
“The drilling continues to demonstrate that Caula is emerging as a world-class graphite deposit,” Dr Olivier said. “In light of what we have observed, we are eagerly awaiting the assay and metallurgical testwork results, which will all form part of the project’s Concept Study.
“Pending the results of the Concept Study, Mustang is committed to fast-tracking the development of Caula by commencing the DFS phase of resource drilling in Q2 2018.”
- Mustang appoints Dr. Bernard Olivier to the Board as Managing Director
- Interim Executive Chairman Ian Daymond reverts to being NonExecutive Chairman
- Non-Executive Director Cobus van Wyk appointed as Chief Operating Officer and Executive Director
Mustang Resources (ASX: MUS) is pleased to announce the appointment of Dr. Bernard Olivier to the Board as Managing Director and Cobus van Wyk as Chief Operating Officer and Executive Director.
Ian Daymond, Chairman of Mustang Resources commented: “We are pleased to announce the appointment of Bernard Olivier as MD and Cobus Van Wyk as COO. Bernard brings significant experience in all aspects of coloured gemstone mining, marketing and sales and was a key person in the development of the TanzaniteOne coloured gemstone mining operation in Tanzania where he managed a team of over 600 employees. In addition, he has a background in the graphite sector and 8 years’ experience as CEO of a LSE listed company. Cobus has been an integral member of the Mustang Board and the project’s operations manager and we are also very pleased that he will become an Executive Director and COO reporting to the MD.”
Bernard Olivier, MD of Mustang commented: “I believe Mustang has world-class assets and look forward to progressing the ruby and graphite projects with the rest of the highly skilled and dedicated Board and management team at Mustang."
MAIDEN INFERRED MINERAL RESOURCE ESTIMATE
COMPLETED FOR CAULA GRAPHITE PROJECT
Results firmly establish Caula as one of the highest grade graphite deposits in the world with a Mineral Resource grade of 13% TGC (at 6% cut-off)
- The maiden JORC Compliant Inferred Mineral Resource estimate for Caula graphite deposit (Mustang 80% interest) has been completed
- The result, combined with previous metallurgical tests, demonstrates that Caula is a prime candidate to supply the rapidly-growing expandable graphite and lithium battery market
- The Inferred Mineral Resource (at a 6 % cut-off grade) totals 5.4 Mt at 13.0% TGC (Total Graphitic Carbon) for 702,600 tonnes of contained graphite and comprises:
- Oxidised zone 2.4 Mt at 10.9% TGC for 261,600 tonnes of contained graphite Fresh zone 3.0 Mt at 14.7 %TGC for 441,000 tonnes of contained graphite
- Metallurgical testing has produced high-grade concentrates (>95% TGC) with exceptional recoveries (96% recovery from fresh rock composite sample)
- More than 55% of the fresh graphite assayed has been classed as Jumbo & Large Flake (46% classed as Jumbo & Large Flake for fresh and oxide composites combined)
- Optimisation work underway to simplify flowsheet and enhance large and jumbo flake product recoveries even further The full extent of the Caula mineralisation is yet to be established and substantial value can be added with additional drilling
- Strong potential for additional graphite discoveries within the 18km long TEM anomaly Exploration drilling scheduled to resume in November 2017
Mustang Resources Ltd (ASX: MUS) is pleased to announce its maiden JORC Compliant Mineral Inferred Resource estimate for the Caula Graphite Deposit (Licence 6678L).
The Caula Deposit is located along strike from Syrah Resources’ (ASX:SYR) world-class Balama graphite project in Mozambique.
MUSTANG RUBY INVENTORY NOW EXCEEDS 350,000 CARATS
AS GOVERNMENT GRANTS FIRST MINING CONCESSION
First ruby tender a fortnight away
- Mustang set to take to tender around twice as many carats as originally targeted
- More than 30 leading global ruby buyers have officially registered for the tender with applications still coming in
- Mustang secures 25-year tenure with the award of its first Mining Concession at Montepuez Ruby Project
- This security of tenure paves the way for Mustang to undertake its planned processing plant expansions after its maiden tender
Mustang Resources (ASX: MUS) is pleased to announce that its ruby inventory has grown strongly to 352,260 carats, putting the Company in an outstanding position in the lead-up to its maiden rough ruby tender to be held between 27 and 30 October 2017 in Port Louis, Mauritius.
The highly successful program means Mustang is set to take to tender around double the 200,000 carats it originally targeted when it initially selected the sale date.
Mustang achieved a new production record in the month of September, recovering 27,131 carats from 47,160 tonnes processed with consistent head feed grades of ~50 to 60 carats per 100 tonnes and retained a plant stockpile of 55,815 tonnes at 5 October 2017. Furthermore, continued strong results were also achieved from the artisanal development program, thanks to the success of implementing mobile processing equipment and delivering increased process water supplies.
Mustang is also pleased to announce that 35 leading global ruby buyers from Thailand, India, Sri Lanka, Hong Kong and Europe have officially registered to take part in the tender and have signed tender access agreements. In addition to the ruby buyers, representatives from the Mozambican Government have also been invited to attend the tender.
Mustang’s strategy to establish strong, sustainable production and cashflow has also been underpinned through the grant of Mining Concession 8921C by the Ministry of Minerals & Energy. This concession is the first Mining Concession granted to the Company at Montepuez and is valid until 13 September 2042. It replaces exploration and prospecting licence 4143L and secures a 25-year tenure, thereby paving the way for planned processing capacity increases following the maiden tender.
MUSTANG SECURES $19.95 MILLION FUNDING PACKAGE FROM LEADING INSTITUTIONAL INVESTOR
Funding in conjunction with a one for five non-renounceable entitlement issue to existing shareholders to fund the further development of the Montepuez Ruby and Caula Graphite Projects
Arena Investors LP, a major US institutional investor with more than US$750 million in assets under management on behalf of its clients and affiliates, commits to invest net A$19.95 million in Mustang under a multi-tranche convertible note facility
Funds to be drawn down in seven tranches with the first tranche of A$1.9 million (subject to conversion restrictions) to be received on signing the convertible note deed
Follow on tranche of A$3.8 million (subject to shareholder approval) available to the Company in May 2018
Balance of A$14.25 million will be available in five further draw-downs of A$2.85 million over two years, subject to shareholder approval
Opportunity for existing shareholders to participate through a one for five non-renounceable entitlement issue at 2.6 cents per share to raise up to A$4 million
Funding arrangement ensures that Mustang is financed for further planned exploration and development work on its Montepuez Ruby and Caula Graphite Projects in Mozambique
Mustang Resources (ASX: MUS) is pleased to announce that it has secured a A$19.95 million funding facility under a convertible note facility (Convertible Note Deed) with a leading US institutional investor.
The Convertible Note Deed, with convertible notes having a face value of A$21 million, has been signed with Arena Investors LP (Arena), a US-based institutional investor with more than US$750 million in assets under management on behalf of its clients and affiliates. Under the terms of the Convertible Note Deed, Arena has agreed to invest up to a net A$19.95 million (face value A$21 million) through an unsecured convertible note facility, to be drawn-down in seven separate tranches as follows:
A$1.9 million (face value A$2 million) to be received upon signing of the Convertible Note Deed (with notes subject to conversion restrictions) with the convertible note to be issued (together with any shares issuable upon conversion) under the Company’s existing placement capacity;
A$3.8 million (face value A$4 million) (subject to shareholder approval) for the follow on tranche which may be drawn by the Company 4 months after the first tranche issue date; and
A$2.85 million (face value A$3 million) (subject to shareholder approval) for each of the remaining five tranches, with 3 to 4 months minimum between draw downs thereof.