Edison Report Retraction of Statements
Sydney, July 31, 2018 AEST (ABN Newswire) - Following discussions with the ASX regarding compliance with clause 51 of the JORC Code 2012 and Listing Rule 5.6, Mustang Resources Ltd ("Mustang", the "Company") (
ASX:MUS) (MTTGF:OTCMKTS) hereby retracts the below statements made by Edison Investment Research Ltd ("Edison") regarding their "in-situ" peer group resource multiple valuation of the Caula Vanadium-Graphite project. Edison is an independent research company commissioned by Mustang to conduct research on the Company, for distribution to their global network. Edison published a report on Mustang dated 24 July 2018.
Retracted Statements:
"Based on applying peer-group in-situ resource multiples to Caula's 2,933kt of contained graphite (24 July 2018 resource update) and 81.6kt of contained vanadium (20 July 2018 maiden resource update), we would value the Caula graphite resource at US$27.5m (A$37.5m) and the vanadium resource at US$16.8m (A$22.9m) for a total valuation for Caula of US$44.2m (A$60.3m). This does not take into account any potential upside should further drilling continue to increase the scale of this project."
"On average, graphite exploration and development companies trade at a multiple of US$9.36 per tonne of in-situ graphite contained in measured and indicated resources while vanadium companies trade at an average of US$205.49/t per tonne of in-situ vanadium in measured resources.
Applying these multiples to Caula's graphite and vanadium resources respectively gives us a valuation for graphite of US$27.5m (A$37.5m), and for vanadium of US$16.8m (A$22.9m)."
Mustang has informed Edison of these discussions and requested that the report be updated and republished. Investors should not rely on the retracted information as a basis for an investment decision in relation to Mustang's shares.
Mustang Resources Managing Director Bernard Olivier Commented "Unfortunately some sections of the report by Edison, a globally recognised independent research company with more than 420 corporate clients and more than 1,000 published mining sector research reports, were not in strict compliance with clause 51 of the JORC Code 2012. Edison have confirmed that they will publish an updated note on their website shortly. Mustang remains encouraged by the exceptional recent results from the Caula Vanadium-Graphite Project in Mozambique and look forward to providing the market with an update on the project shortly."
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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