ASX-listed ruby miner Mustang Resources will begin plant upgrades at its Montepuez project in Mozambique in June 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.
“We are pleased to report continuing progress on the development of the Montepuez ruby project. Our revised exploration and development strategy is now well on track,” says Mustang Resource MD Dr. Bernard Olivier.
“We look forward to completing the maiden JORC resource and economic viability work later this year which, along with the planned plant capacity increase, we hope will pave the way for commercial-scale production operations to start,” he adds.