MUS reports strong exploration and production results at Montepuez Ruby Project

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Mustang Resources (ASX:MUS) has announced that bulk sample processing and exploration activities on its Montepuez Ruby Project, in Northern Mozambique, are delivering increasingly strong results.

MUS are working towards establishing Montepuez as a world class ruby project with consistent production and exploration upside. The announced results demonstrate that MUS is on track towards achieving this.

The ongoing exploration activities conducted during fourth quarter of 2017 and the first of 2018 have already delivered positive results. At total of 69 sampling pits were developed and processed during the period while a total of 14,502 tonnes of material were excavated and extracted as part of the bulk sampling process.

The exploration, pitting, trenching and bulk sampling programme has extended the gravel bed extension from 3.3 kilometres to 4.2 kilometres. It identified additional gravel bed targets over a 3 kilometre long river and associated tributaries system.

During the fourth quarter of 2017, MUS made significant improvements to the processing plant to optimise its efficiencies and reduce processing costs. It was able to increase average grades by more than 10% from October 2017, compared with the total average grade achieved from previous bulk sampling.

MUS is also implementing further processing, sorting and grading improvements to increase overall efficiencies.

Ongoing processing of bulk sample material since October 2017 has returned the following results:

• 80,658 tonnes processed in Q4 2017 with 29,983 carats recovered at an average grade of 0.37ct/t.
• 17,025 tonnes processed in Q1 (to date) with 7,495 carats recovered at an average grade of 0.44ct/t

As at 31 January 2018, MUS had inventory available for sale of 302,028 carats.

Of course, as with all minerals exploration especially in high-risk regions such as Africa, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

The geology team also analysed the exploration dataset and selected further targets for additional pitting. During the remainder of the current quarter, MUS’s exploration programme will focus on identifying further high-grade targets for large-scale bulk sampling excavation and processing. It will also further delineate the dimensions and ruby distribution of the deposit, which remains open in all directions.

Montepuez Ruby Project tenements with sampling, drilling and pitting localities to date:

The Montepuez project area with pitting and sampling localities indicated:

The company will provide an update shortly on the progress of its marketing and sales.

MUS Managing Director Dr Bernard Olivier said, “Having spent time on site in recent weeks, I am very pleased to report that exploration, bulk sampling and processing activities on the Montepuez Ruby Project are meeting our targets. These results reflect the skills and commitment of Mustang’s motivated and experienced operational team.

“The fourth quarter 2017 plant optimisation programme is generating the intended results with further improvements and upgrades now being implemented. The overall results demonstrate that Montepuez is highly prospective and technically sound.”