This announcement follows on the company’s release of a maiden JORC compliant mineral resource estimate for the deposit which is located in northern Mozambique, approximately 230 km west of the coastal capital city of Pemba. It is also situated along strike from Syrah Resources’ world-class Balama graphite project.
The project has a mineral resource grade of 13%TGC (total graphite content - at 6% cut-off).
The result, combined with previous metallurgical tests, demonstrates that Mustang Resources’ 80% owned Caula project is a prime candidate to supply the rapidly-growing expandable graphite and lithium battery market.
The inferred mineral resource (at a 6% cut-off grade) totals 5.4 Mt at 13 TGC for 702 600 t of contained graphite.
Metallurgical testing has produced high-grade concentrates (>95% TGC) with exceptional recoveries (96% recovery from fresh rock composite sample) and more than 55% of the fresh graphite assayed has been classed as jumbo and large flake (46% classed as jumbo and large flake for fresh and oxide composites combined).
Optimisation work is underway to simplify flow sheet and enhance the large and jumbo flake product recoveries further.
“This result is based on a small portion of the total target area,” says Mustang Resources interim executive chairman Ian Daymond.
“The mineralisation remains open in all directions and there is excellent potential to grow the deposit significantly with a third round of drilling, particularly along the large-scale geophysical anomaly which has been defined. We will start this follow-up drilling in the next few weeks.”
The combination of high grade drilling results, positive initial metallurgical test-work, a high grade maiden mineral resource estimate, large-scale untested exploration targets and the project's location within a demonstrated world-class graphite province confirm the project's potential to create significant future value for the company.