Next Investors logo grey

Mustang intersects high-grade graphite and vanadium at Caula project

Published 19-MAR-2018 12:36 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

This product is classified as ‘very high risk’ in nature due to its location and geopolitical situation of the region. FinFeed advises that extra caution should be taken when deciding whether to engage in this product, however if you are not sure whether it is suitable for you we suggest you seek independent financial advice.

Mustang Resources (ASX:MUS) has released highly promising results of up to 24.2% total graphitic carbon (TGC) and 1.02% vanadium from its latest diamond drilling program at the Caula project in Mozambique.

The findings came from drill work undertaken at MODD014 in 2017, which is in close proximity to the previous five holes drilled at the site in 2016 (as seen below).

Mustang resources caula hill project

Results from the drilling include:

  • 96m downhole at 24.2% TGC
  • 52m downhole at 23.9% TGC
  • 74m downhole at 1.02% vanadium
  • 71m and 75m downhole at 0.98% vanadium

A total of 65 samples returned yields above 15% TGC, including 19.03% TGC from 86m to 104m (downhole depth) and 17.28% TGC from 44m to 55m.

MUS also noted that much of the graphite mineralisation is shallow with high grades close to the surface, such as 19% TGC at 17m.

These results have established Caula within the top quartile high-grade large flake graphite deposits globally.

Based on sampling completed on the diamond drilling samples in 2017, MODD014 returned an average vanadium grade of 0.42% within a 125m mineralised zone (downhole width from 17m to 143m).

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.

MUS Managing Director Dr Bernard Oliver believes the latest results will also strengthen Caula’s impending resource upgrade.

“Caula goes from strength to strength, as these new results show,” he said. “We have very high graphite grades, substantial widths and a very significant proportion of large and jumbo flake sizes.

“Now, in addition to the outstanding graphite mineralisation, we are establishing the presence of substantial vanadium mineralisation.

“We look forward to updating the graphite Resource and including a maiden Resource estimate for the vanadium. This will in turn form part of the Concept Study now underway at Caula,” he concluded.

Project area potential

The Caula project is located within a world-class graphite province and holds the potential to expand the maiden JORC Inferred Mineral Resource estimate of 5.4 million tonnes at 13% TGC via continued drilling.

The region is situated at the northern end of a suite of large-scale geophysical (TEM) anomalies that extend over an 18km strike length within Mustang’s tenements.

Work to date at Caula confirms a strong spatial correlation between the TEM anomaly and high-grade graphite and vanadium mineralisation in drillhole intersections.

Generous zones of mineralisation have been identified via the original sampling program, with lithological logging indicating additional mineralisation to the east of the project.

MUS expects the returns of the completed diamond drilling campaign to expand the JORC resource and strengthen confidence in the defined mineralisation.

The company plans to expedite the project development through a two-stage developmental strategy which will deliver a marketable graphite and vanadium product in H1 2019 in stage one.

It will also incorporate the average vanadium assay results into a revised graphite and vanadium development strategy update.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.