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Mustang Resources begins feasibility drilling at Caula Vanadium-Graphite Project

Last updated: 04:17 08 Aug 2018 BST, First published: 14:17 07 Aug 2018 BST

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Feasibility study drilling at the Caula project

Mustang Resources Ltd (ASX:MUS) has begun a drilling program at its Caula project in northern Mozambique, with over 4,000 metres planned for completion this quarter.

Results from the program will underpin resource expansion and upcoming feasibility studies, as well as provide additional core samples for metallurgical testing.

Drilling is being undertaken by Major Drilling International Inc and will comprise 3,025 metres of diamond drilling and 1,050 metres of reverse circulation (RC) drilling.

Caula lies along strike from the Balama Graphite Project, owned by Syrah Resources Ltd (ASX:SYR).

 

Managing director Bernard Olivier said: “This drilling program is a significant step forward for Mustang Resources as we expect to see an expansion of the already valuable Caula vanadium and graphite resources.

“Samples from the drilling will be used to conduct further metallurgical test work to validate and confirm the company’s previous test work and reinforce the simplicity of the recovery process.”

Vanadium and graphite resources

Caula hosts a vanadium resource of 22 million tonnes at 0.37% for 81,600 tonnes of vanadium pentoxide, with high-grade intersections up to 1.9%.

Within the same deposit is a graphite resource of 21.9 million tonnes at 13.4% for 2.93 million tonnes of graphite, with high-grade intersections up to 29%.

READ: Mustang Resources shares ride higher after fourfold increase in graphite resource

Drilling will test for both up-dip and down-dip extensions to the Caula deposit, with mineralisation now defined over a 540-metre strike length and up to 230 metres wide.

Clear potential exists to define additional vanadium-graphite mineralisation adjacent to the existing resource, as well as over a significantly larger area across the prospect.

Potential of the larger Caula area based on EM signatures

 

Successful test work

Mustang has observed in metallurgical test work that the vanadium in the Caula ore reports to tailings during the graphite flotation process.

Vanadium recovery test work on the flotation tailings demonstrated that a portion of the vanadium can be recovered and concentrated using a wet high intensity magnetic separator (WHIMS).

Test work also showed that additional vanadium can be recovered from WHIMS tailings by a froth flotation procedure, aimed at recovering and concentrating micaceous minerals including roscoelite.

It has also demonstrated strong similarities with Balama mineralisation, which Syrah Resources has shown can be used to produce commercial grade vanadium pentoxide.

Work towards optimising vanadium recovery and concentrate grade is ongoing.

A scoping study at Caula is underway and scheduled for completion in September.

Resource upgrades and results of the feasibility studies are anticipated to be complete in quarter four of 2018 and the first quarter of 2019, respectively.

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