Mustang Resources Ltd.: Discovery of Significant New Ruby Deposit at Montepuez
Sydney - Mustang Resources (ASX:MUS) (OTCMKTS:MTTGF) is pleased to announce that it has discovered a new ruby-bearing gravel deposit just 3.5km from its processing plant at the Montepuez Ruby Project in Mozambique.Key Points
- Discovery of new ruby-bearing gravels within Mustang's Montepuez Ruby Project in Mozambique
- New ruby-bearing gravels located 3.5km directly south-west from Mustang's 200tph processing plant
- A total of 29,069.1 carats were recovered from the processing of 43,940m3 (~68,107 tonnes) of stockpiled material at Montepuez during Q1 2018 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
- Preparations underway for the re-commencement of bulk sampling activities as the rainy season in Mozambique draws to an end
The discovery was made during an extensive exploration and test pitting campaign undertaken at Montepuez during the March 2018 quarter which resulted in the development of 196 test pits during the period. The program has returned a host of positive results which will be followed up in the new exploration field season.
The new deposit was discovered in an area referred to as Block D, located on Licence 8955C, approximately 3.5km to the south west of the Company's 200tph processing plant (see Figure 1 in link below). Mustang is further encouraged by the confirmation of ruby bearing gravels in Block A, B and C, confirming the extension of ruby mineralisation extending from the LM bulk sampling pits.
Preparations have now commenced to restart the exploration bulk sampling program at Montepuez as the rainy seasons draws to an end, and the newly-identified Block D will form part of the upcoming bulk sampling program.
Q1 Ruby Operations Update
During Q1, a total of 29,069.1 carats were recovered from the processing of 43,940m3 (68,107 tonnes) of material at Montepuez, resulting in an average grade for the quarter of 0.42 carats/tonne (see Note below).
The Q1 2018 recovery grades were approximately 13.5% higher than Q4 2017, while tonnes processed were approximately 15% lower. In Q4 2017, approximately 80,658 tonnes were processed with 29,983 carats recovered at an average grade of 0.37 carats/tonne.
Heavy rains during the quarter adversely affected operations and processing of the stockpile.
Preparations have now commenced to restart the exploration bulk sampling program as the rainy seasons draws to an end.
Mustang's Montepuez Ruby Project is located in the heart of the globally significant Montepuez gem-field, adjacent to the advanced mining operations of Gemfields (JSE: PGL subsidiary) and early-stage exploration assets of Fura Gems (CVE:FURA) (see Figure 2 in link below).
Mustang's Managing, Director Dr. Bernard Olivier, said: "The discovery of the Block D ruby-bearing gravels and the success of our ongoing exploration activitites continue to show the significant prospectivity of the Montepuez Ruby Project. When combined with the recent initial success of our newly-implemented sales and marketing strategy, we are confident that we can continue to steadily build value around this high-quality asset - which is strategically located in the heart of the Montepuez gem-field, currently the world's leading supply source of rubies."
Note: The stated grade is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource under the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code (2012)"
To view figures, please visit:
http://abnnewswire.net/lnk/V85P66BN
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 three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields Plc in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.
The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.
Visit the Mustang website at http://www.mustangresources.com.au for more information.
Source: Mustang Resources Ltd.
Contact:
Media & Investor Relations: Paul Armstrong
E: paul@readcorporate.com.au
T: +61-8-9388-147
