Mustang Resources discovers new ruby deposit in Mozambique

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Mustang Resources discovers new ruby deposit in Mozambique

7:50 CAT | 17 Apr 2018

Mustang Resources Ltd (ASX:MUS) has discovered a new ruby-bearing gravel deposit just 3.5 kilometres from its processing plant at the Montepuez Ruby Project in Mozambique.

The company plans to add this discovery to its bulk sampling activities at Montepuez which produced 29,069.1 carats during the March 2018 quarter.

The rain season is now ending in Mozambique and bulk sampling activities are in the process of recommencing, which will include the new Block D discovery.

READ: Mustang Resources makes first ruby sale from new Thailand office
Mustang’s managing director Dr Bernard Olivier said: “The discovery of the Block D ruby-bearing gravels and the success of our ongoing exploration activities continue to show the significant prospectivity of the Montepuez Ruby Project.

“When combined with the recent initial success of our newly-implemented sales and marketing strategy, we are confident that we can continue to steadily build value around this high-quality asset – which is strategically located in the heart of the Montepuez gem-field, currently the world’s leading supply source of rubies.”

Most recently, Mustang sold $230,953 worth of rubies through its newly established sales and marketing office in Thailand during March.

A total of 329,309 carats of rubies were in Mustang’s available-for-sale inventory as at 10 April 2018.

June quarter expected to improve on March quarter
During the March quarter, a total of 29,069.1 carats were recovered from the processing of 68,107 tonnes of material at Montepuez.

This resulted in an average grade for the quarter of 0.42 carats per tonne processed.

With heavy rains subsiding, the June quarter is expected to see an increase in production.

Block D is not the only positive from exploration
The discovery was made during an extensive exploration and test pitting campaign undertaken at Montepuez during the March 2018 quarter.

This resulted in the development of 196 test pits during the period.

The discovery at Block D is 3.5 kilometres to the south-west of the company’s 200 tonnes per hour processing plant.

Furthermore, ruby bearing gravels have been confirmed in Block A, B and C, confirming the extension of ruby mineralisation extending from the LM bulk sampling pits.

Rubies recently reintroduced to Tiffany & Co collections
As Mustang advances its sales and marketing operations through its newly opened office in Thailand, ruby jewellery continues to be prominent.

For example, recently Tiffany & Co in Australia were promoting “New Reasons to Love Rubies”.

Notably, new ruby designs are being promoted after being recently reintroduced to several Tiffany collections.

Source: Proactive Investors Australia