Montepuez ruby strategy on track with another discovery and first sales in Thailand; Caula graphite project shows significant vanadium potential; First cashflow at Caula targeted for H1 2019
Quarterly Activities & Cashflow Report
Sydney, April 26, 2018 AEST (ABN Newswire) - Mustang Resources Ltd (
ASX:MUS) (MTTGF:OTCMKTS) provides the Company's Quarterly Activities Report.
Highlights
Montepuez Ruby Project, Mozambique
- During the quarter Mustang made strong progress on the Montepuez Ruby Project located in the heart of this globally significant gem-field
- A total of 29,069.1 carats were recovered from the processing of 43,940m3 (~68,107 tonnes) of stockpiled material at Montepuez with:
o An average grade of 0.42 carats/tonne achieved for the quarter, 13.5% higher than Q4 2017; and
o A total of 329,309 carats of rubies in the Company's available-for-sale inventory as at 10 April 2018
- New ruby-bearing gravels discovered during the quarter, located 3.5km directly south-west of Mustang's 200tph processing plant
- New sales and marketing office established in Chanthaburi:
o Maiden sales of A$230,953 achieved by 10 April 2018
o 18,288 carats of mostly lower and medium quality rubies sold at an average price of A$12.67 per carat
- Total sales of ~A$1.23M achieved since September 2017 through the sale of 100,184 carats at an average price of A$12.29 per carat recovered from exploration activities
- Significant interest received from well-known international jewellery brands and buyers who seek sustainable and responsibly produced rubies with full supply chain assurance
Caula Graphite & Vanadium Project, Mozambique
- Associated vanadium present at Caula project with MOD014 intersecting 125m of vanadium at an average of 0.42% V2O5 (incl. multiple intersections from 0.7% to 1.02% V2O5)
- Assays show grades of up to 24.2% Total Graphitic Carbon (TGC) and 1.02% Vanadium (V2O5) including:
o 125m (from 17m downhole) at 14.1% TGC average (incl. multiple intersections from 23 to 24% TGC); including
-- 96 m downhole at 24.2% TGC
-- 52 m downhole at 23.9% TGC
o 125m (from 17m downhole) at 0.42% V2O5 average (incl. multiple intersections from 0.7% to 1.02% V2O5); including
-- 74m downhole at 1.02% V2O5
-- 71m and 75m downhole at 0.98% V2O5
- Caula emerging as one of the world's higher-grade graphite and vanadium projects
- Graphite and vanadium strategy announced in March 2018 with focus on fast-tracking a dual graphite and vanadium development plan to deliver first cashflow in H1 2019
- Further higher-grade results (up to 0.68% V2O5) over extensive widths from diamond drilling on Licence 5873L, 7.5km south of previous drilling on Mustang's Caula Graphite & Vanadium Project in Mozambique
Corporate
- In January 2018 Arena Investors LP, a major US institutional investor with more than US$750 million in assets under management, committed to invest a net A$19.95 million in Mustang under a multi-tranche convertible note facility
- First tranche of A$1.9 million received on signing of agreement with follow-on tranche of A$3.8 million approved by shareholders in February 2018 and available for drawdown by the Company in May 2018
- Non-renounceable 1 for 4 pro rata rights issue at an issue price of $0.023 per New Share closed on Thursday, 22 March 2018 at 5.00pm WST
- Total subscription amount received from the Entitlement Offer (before costs) was $2,454,485 made up of $1,696,675 of entitlements plus $757,810 of shortfall taken up by eligible shareholders
- Appointment of experienced resources executive Dr. Evan Kirby as a Non-Executive Director. He is a metallurgist with more than 40 years' experience
- Mustang had A$2.137 million cash on hand as at 31 March 2018
To view the full report, please visit:
http://abnnewswire.net/lnk/DI704UUL
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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