Mustang confirms maiden vanadium Resource
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Mustang Resources Ltd (ASX:MUS | FRA:GGY) today reports that it has completed a maiden JORC-compliant vanadium Mineral Resource estimate at its Caula Vanadium-Graphite Project in Mozambique.
The Mineral Resource, which is all in the Measured category, is 22Mt at 0.37% vanadium pentoxide (V2O5), at a 0.2% grade cut-off, for a total of 81,600 tonnes of contained vanadium pentoxide.
This maiden vanadium Resource is another key step towards development, adding to the existing graphite Resource at Caula of 5Mt at 13% Total Graphitic Carbon (TGC).
Mustang Managing Director Dr. Bernard Olivier said the combination of the vanadium and graphite resources shows Caula is rapidly emerging as a highly valuable project.
“This is an exceptional result, with over 81,000 tonnes contained V2O5, particularly given that the entire JORC Resource is in the Measured category.
“With vanadium pentoxide prices running at more than US$40,000 per tonne (98% V2O5), the Caula resource translates to a highly valuable resource.
“Furthermore, the potential of the project is even greater as our vanadium is mica-hosted and associated with the graphite mineralisation and potentially far cheaper to extract and recover through two simple processing steps, compared with most vanadium projects, where the vanadium is located in a complex titaniferous magnetite ore body.”
Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.
As seen in the resource table (above), the Vanadium Resource is subdivided into two zones: the upper oxidised zone and the lower fresh zone.
There remains substantial scope for further expansion of the vanadium Resource through continued exploration. The deeper fresh mineralised zone is open at depth, and hence the fresh model will significantly expand with future drilling.
MUS is extremely encouraged by the results received to date from its maiden Vanadium Resource Estimate and the Caula deposit as a whole. It is now finalising an updated graphite Mineral Resource estimate.
The combination of high grade drilling results, positive initial metallurgical testwork, a large V2O5 maiden Measured Resource estimate, large-scale untested exploration targets and the project's location within a demonstrated world-class graphite-vanadium province confirm the project's potential to create significant future value for the company.
Today’s vanadium Resource announcement follows news just days ago that MUS had agreed to merge its Montepuez ruby assets with Fura Gems Inc. (TSX-V:FURA) for A$10 million in Fura shares. The deal will give MUS shareholders significant exposure to the rapidly growing ruby market via a specialist gem company with extensive experience and a diversified asset base in the coloured gemstone industry.