Mustang Resources Ltd (ASX:MUS) has completed, ahead of schedule, its feasibility study drilling program on the Caula Vanadium-Graphite Project in Mozambique.
Mineralisation was intersected in all 34 holes and visible graphite and vanadium was visually encountered outside the current JORC resource boundaries to the east, west and south.
The strike has increased to over 850 metres from 540 metres, and the true width has nearly doubled to 430 metres, from 230 metres.
The drilling program comprised 3,025 metres of diamond drilling and 1,130 metres of reverse-circulation drilling.
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Mustang’s managing director Dr Bernard Olivier said: “It is Mustang’s view that Caula represents a unique opportunity for the supply of two critical raw materials (graphite & vanadium) which are needed for the storage of energy (lithium-ion batteries & vanadium redox flow batteries), next generation building materials (expandable graphite) and earthquake resistant steel-rebar (vanadium as alloy).
“As such, the company is committed to fast-tracking this project and will therefore be running a number of workflows concurrently to ensure the fast & effective development of this world-class project, with first cash flow from phase I trial mining and processing targeted for H2-2019.
“The pending scoping study report is expected to be a major step towards achieving this milestone.”
On track for cash flow in December half of 2019
The scoping study underway is well advanced and results are expected between 24 September and 5 October 2018.
A two-phased development for Caula is being modelled, based on the JORC Measured resource for both graphite and vanadium.
Mustang is still on track to generate its first cash flow from Caula in the December half of 2019 through the implementation of a phase I trial mining and processing operation.
The scale and economics of this operation will be defined in the scoping study.