Mustang Resources Ltd (ASX:MUS) has released high-grade results over extensive widths from drilling at its Caula Graphite and Vanadium Project in Mozambique.
Assays show grades of up to 24.2% total graphitic carbon (TGC) and about 1% vanadium.
There were some outstanding isolated samples such as 125 metres at 14.1% TGC at a shallow depth of 17 metres.
Other features were multiple wide intersections of vanadium including 74 metres downhole at 1%.
High-grade jumbo flake graphite
Bernard Olivier, managing director, said, “Caula goes from strength to strength, as these new results show.
“We have very high graphite grades, substantial widths and a very significant proportion of large and jumbo flake sizes.”
Mustang fast-tracking graphite-vanadium project
Caula is being established as one of the world’s highest-grade graphite and vanadium projects.
READ: Mustang Resources flags the potential to produce vanadium concentrate at Caula Graphite Project
The project is within a world-class graphite province and there is significant potential to expand the maiden JORC inferred mineral resource of 5.4 million tonnes at 13% TGC.
Based on the company’s new strategy focused on fast-tracking a dual graphite and vanadium development, it expects to deliver first cashflow in the first half of 2019.
Vanadium assay results to be used in strategy report
Olivier said: “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, including a maiden resource estimate for the vanadium.
“This will, in turn, form part of the concept study now underway at Caula.”
Two-stage development
Mustang estimates that, subject to the final results of the concept study, it can fast-track the project development through a two-stage development strategy.
It is anticipated that this will deliver a marketable graphite and vanadium product in the first half of 2019 from Stage I.
Mustang plans to incorporate the average vanadium assay results of 0.42% vanadium over 125 metres at shallow depths into a revised graphite and vanadium development strategy.