(MENAFN- ABN Newswire)
Mustang Resources (ASX:MUS) (OTCMKTS:GGPLF) ("Mustang" or the "Company") is pleased to announce that its ruby inventory has grown to 120,397 cts (see Figure 2 in the link below), putting it comfortably on schedule to meet its target of 200,000cts in time for its first closed bid tender in October this year.
Highlights
- Mustang firmly on track for first sale of 200,000cts in October with inventory already hitting 120,000cts
- Rapid inventory growth due in part to success of upgraded processing plant at Montepuez ruby project
- Initial bulk sample confirms significant new ruby discovery on recently acquired licence
- Shallow secondary deposit, with initial bulk sample of 5,692 m3 delivering 4,445 cts of gem quality rubies
- Consistent recovery of stones classed in the special/premium category
- Extensive secondary ruby mineralisation proven over 2,200m strike (open ended)
The growing inventory reflects in part the successful commissioning of the upgraded processing plant at Mustang's Montepuez Ruby Project in Mozambique as well as the discovery of a shallow secondary ruby deposit 3km south-east of the plant.
During the commissioning process, it was found that a larger capacity recycling dam was needed to ensure sustainable water supply for the plant. The water is required to break and wash the clay out of the gravel. The optimised water recycling dam and plant will shortly be fully operational, allowing the plant to work at full capacity.
Mustang Managing Director Christiaan Jordaan said the Company's strategy to generate substantial cashflow from Montepuez was well on track.
"The successful commissioning of our upgraded plant and the growth in our ruby inventory should ensure we achieve a 200,000-carat inventory before October," Mr Jordaan said.
"This will underpin our first closed bid tender and enable Mustang to demonstrate the cashflow potential of Montepuez.
"Work is now underway to select a safe-house facility and tender location. These sites are expected to be finalised within two months."
Significant New Secondary Ruby Discovery
Mustang is also pleased to announce that processing of gravels from bulk sampling in the key focus area of the new licence 3km south-east of the plant (Pit LM01) is yielding high-quality secondary rubies (see Figure 1 in the link below). To date, 5,692 m3 (8,823 tonnes) have been processed for 4,445.3 cts. including consistent recovery of high quality stones larger than 3cts (classified as "Special/Premium Stones").
Furthermore, manual test pitting along strike from the LM01 bulk sample pit has confirmed that gravel-hosted secondary ruby mineralisation is extensive with ruby-bearing gravels recorded in test pits over a 2,200m extent (open ended, refer Figure 3 in the link below).
Processing of 4,5 tonnes of gravel from test pits from NT01 to NT23 through the Bushman Jigs has yielded 10.7 cts of rubies and work is ongoing to map the full size of the secondary ruby deposit(s) in this key target area and beyond.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/HJTF76Y0
Listed on the Australian Securities Exchange, Mustang Resources Limited (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.
Managing Director:Christiaan JordaanE: : +61-2-9239-3119Media & Investor Relations:Paul ArmstrongE: : +61-8-9388-1474
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