Mustang Resources Ltd.: Bulk Sampling Starts on New Highly Strategic Ruby Licence
Sydney - Mustang Resources (ASX:MUS) (OTCMKTS:GGPLF) (or the Company) is pleased to announce that it has taken another significant step in its strategy to ramp up processing at the Montepuez Ruby Project in Mozambique with the start of bulk sampling on the recently-acquired Licence 8245L area.The licence is highly strategic because it borders the existing Montepuez licence areas of the Company on one side and the lucrative ruby project owned by London-listed Gemfields on the other (see Figure 1 in the link below).
Importantly, it lies along the south-east, north-west ruby mineralisation trend, which also transects the adjacent Gemfields licences.
A February 2017 site visit by Mustang consultant Paul Allan confirmed that artisanal miners are recovering high-quality rubies from this licence area.
Mustang has made a strong start to the bulk sampling at 8245L, with >10,000 tonnes of gravel already delivered to the Montepuez processing plant from Pit NT01 (see Figure 2 in the link below).
Mineralisation within Pit NT01 is shallow with a very low strip ratio.
Initial manual test pitting by Mustang across a broader area of 8245L (see Figure 2 in the link below) has generated strong results, with 11.75cts (9.45ct ruby and 2.30ct corundum) recovered from 2,726kgs of gravel (from seven manually dug pits) processed through Bushman Jigs, highlighting the high-grade potential of the area.
Mustang announced last week that the commissioning of the upgraded processing plant at Montepuez has been highly successful and processing rates are now ramping up.
Given this excellent progress, Mustang is confident that it will achieve its targeted processing rate of 1,500 tonnes a day within weeks.
The increasing throughput means Mustang is also on track to achieve its target of building a ruby inventory of 200,000 carats ahead of its planned initial auction in October this year. This will provide an opportunity to increase the volume of rubies available for sale in the October auction.
Completion of 8245L Acquisition
The Company is pleased to confirm that all conditions precedent have been met under the binding Term Sheet dated 23 February 2017 with Regius Resources Group Ltd for the acquisition of a 65% interest in 8245L.
One of the conditions precedent (being the execution of Shareholders and Loan Agreements with SLR Mining Lda, which is the registered holder of the licence) has been waived by the Company in the interests of completing the acquisition of the rights to the 65% interest prior to 30 June 2017 and of proceeding forthwith with the prospecting program on the licence.
Pending the finalisation and execution of the Shareholders and Loan Agreements when the Company will become the registered holder of 65% of the issued capital of SLR Mining Lda, the Company's 65% interest is secured by its contractual rights under the binding Term Sheet with Regius Resources Group Ltd and in turn upon Regius' binding joint venture agreement with SLR Mining Lda.
30 million Mustang ordinary shares (escrowed for 24 months) have been issued and US$100,000 cash has been paid to Regius Resources Group Ltd as the vendor to the Company of the 65% interest in the Licence, as required by the binding Term Sheet.
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About Mustang Resources Ltd:
Listed on the Australian Securities Exchange, Mustang Resources Ltd. (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.
The Montepuez Ruby Project consists of four licences covering 19,500 hectares adjacent to the world’s largest ruby deposit discovered by Gemfields Plc (LON:GEM) in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.
The Company is fast-tracking its work program on the Montepuez Ruby Project with high priority targets being identified and low-cost bulk sampling well underway. Mustang also holds interests in seven graphite licences in the Balama area of Mozambique, where it has discovered a Tier-1 high-grade flake graphite deposit at its Caula Project.
Visit the Mustang website at http://www.mustangresources.com.au for more information.
Contact:
Mustang Resources Ltd.
Managing Director: Christiaan Jordaan
E: info@mustangresources.com.au
T: +61-2-9239-3119