Fura Gems has entered a merger of ruby assets agreement with Mustang Resources and Regius Resources at a cost of A$15 million.
“I am pleased to announce the merger of these ruby assets with those of our existing licenses in Mozambique transforming Fura into the largest ruby group by licence area in the country," says Fura president and CEO, Dev Shetty.
"Our team has in-depth experience in the Mozambique ruby sector having previously worked in Mozambique since 2011 where they were instrumental in discovering and developing what is largely considered the world’s largest ruby deposit.
"Based on our extensive work in-country, we believe these combined licenses to be some of the highest quality ruby licenses available in Mozambique.
"The initial ground work has already been done by Mustang and Regius, which includes significant exploration and the construction of two wash-plants. Following completion of the acquisition, we plan to commence a significant bulk sampling project within these licenses in the next few months with the mid-term objective of creating another world class, cash generative ruby mine to complement our iconic Coscuez emerald mine in Colombia.”
Mustang Resources began plant upgrades at its Montepuez project in Mozambique in June 2018 aimed at doubling the current processing capacity. The plant upgrade will entail the installation of an additional rotary pan, which is expected to reduce processing costs and total cost per carat.
Moreover, Mustang Resources has appointed South Africa-based independent consultants Sound Mining Services (SMS) to undertake resource modelling in preparation for the release of a maiden JORC resource in the December quarter 2018.
SMS will start geological and resource modelling based on the comprehensive exploration and bulk sampling to date.
Mustang Resources has been increasing its exploration and pitting activities to provide additional data for the resource and geological modelling and to define further extensions of the various ruby-bearing gravels on its licence areas.
Following completion of these upgrades and the successful completion of the current exploration phase and subject to a favourable maiden JORC resource, further exploration results and economic evaluation, the company is targeting to commence commercial-scale mining operations in the first half of 2019 in accordance with the terms and conditions of the mining concessions.