Mustang Resources Announces Drilling Results from Caula Vanadium-Graphite Project

Mustang Resources Ltd announced more outstanding drilling results from its Caula vanadium-graphite project in Mozambique.

The latest results, which come from drilling Fence Line 3, are considered important because the significant widths and grades continue to underpin the strong economic prospects for Caula, particularly at current market prices for both commodities.

Mustang drilled diamond holes MODD014, MODD015, MODD016 and MODD017 close to the previous five holes drilled in 2016 which resulted in the 2017 JORC Inferred Mineral Resource (at 6% cut off grade) of 5.4Mt at 13.0% TGC for 702,600 tonnes of contained graphite.

Following initial work on Caula’s graphite, recent laboratory analysis also tested for V2O5 (vanadium pentoxide) which led to the discovery of high-grade vanadium mineralisation within the Caula-ore.

In light of these results, Mustang expects to complete a maiden JORC-compliant vanadium resource in coming weeks followed by feasibility studies. It aims to undertake a fast-track d

evelopment to stage 1 vanadium and graphite cashflow from trial mining in the first half of next calendar year.

The Caula vanadium mineralisation is found within a roscoelite mica (see Figure 1 below) and has a strong correlation with the high-grade graphite at Caula. Vanadium-bearing micas such as those at Caula are typically liberated using less energy and fewer processing steps than magnetite-vanadium deposits found in the South African Bushveld complex (Glencore-Rhovan, Bushveld MineralsMokopane) and Western Australia (e.g. Australian Vanadium-Gabanintha, KRC-Speewah). This creates potential for higher V2O5 concentrate grades and lower overall operating costs.


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