An Emerging Gemstone Miner in Mozambique
Sydney, May 1, 2017 AEST (ABN Newswire) - Mustang Resources Ltd (
ASX:MUS) (GGPLF:OTCMKTS) is pleased to provide the Company's latest Investor Presentation May 2017.
Overview: Mustang Poised For Rapid Growth
- Market Cap: ~A$26m at 5.0c a share
- Flagship Montepuez Project located next to London-listed Gemfields (LON:GEM) (AIM:GEM Market cap: ~A$400m); Mustang and Gemfields only listed ruby miners in the world
- Mustang on track for first sales revenue from sale of rough rubies at auction/tender in October 2017
- Current gem ruby inventory of ~73,500cts; set to rise to 200/000cts target over coming months
- Multiple secondary ruby deposits identified in 195km2 land package
- Aggressive drilling campaign to build inventory and JORC Resource
- Plant upgrades completed in April 2017 to further boost processing rates and recoveries
- Acquiring 65% interest in adjacent licence where artisanals are mining gem-quality rubies from a shallow deposit 3km from existing plant
- Additional upside from the high-grade Caula Graphite Project in Mozambique
Why the Revised Sales Strategy
- Mustang recently updated its strategy from selling a mix of cut and polished and rough rubies to selling only roughs
- Mustang planning first auction of ~200,000cts in October, 2017
o Rough grading system under development- key component of rough auction process
- New strategy has two key objectives:
o Very important that Mustang does not compete with its rough stone customers for sales of cut and polished stones
o To generate more substantial cashflow(s) in the medium term due to faster payment terms for rough stones and much simpler sales process
- Revised strategy follows extensive consultation with customers; The strategy is same as that used by Gemfields, which generated US$225m in seven auctions totalling 8.6Mcts (commercial & gem qualities from primary & secondary deposits) over 3.5 years
- The five 'special' stones send t o the US for cutting and polishing by Meg Berry will be sent to Thailand for inclusion in overall inventory
- These five stones (77cts) were never intended to generate material cashflow and only represent 0.1% of current gem ruby inventory; they were to provide an insight into the value of Mustang's cut and polished stones for testing and marketing purposes only and to assist in defining the best sales strategy over the medium to long term
- The remaining parcel of rubies sent to the US (~6,148cts) will be sold as part of the auction next quarter
To view the full presentation, please visit:
http://abnnewswire.net/lnk/64MF8A3P
About New Energy Minerals Ltd
New Energy Minerals Ltd (ASX:NXE) (FRA:GGY) is an ASX listed junior mining company, that recently announced the divestment of the Company's Caula vanadium - graphite project and the Montepuez Ruby project in Mozambique.
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