Mustang Resources finds first rubies at Montepuez project

Login

Register

http://www.clubofmozambique.com/

Mustang Resources finds first rubies at Montepuez project

7:32 CAT | 28 Jul 2016

Mhoje_rubiesvincentpardieusblg_photo_jpg

File photo

The Australian mining company Mustang Resources announced on Wednesday that it has recovered ten rubies from its mine in Montepuez in the northern Mozambican province of Cabo Delgado.

Currently, the company is digging trenches to improve its mapping of the area’s geology and prepare for a bulk sampling programme. In a statement to investors, Mustang claimed that “recovering rubies during this initial phase is thus a very positive indicator”.

The rubies came from 25 samples taken from the trenches. The total weight of the rubies is only 2.61 carats, but the stones will provide invaluable information to the company as it draws up plans for bulk sampling from gravel in the third quarter of the year.

According to Mustang’s managing director, Christiaan Jordaan, “the recovery of ten rubies from alluvial sources at the Montepuez ruby project is very encouraging and the team is buoyed by this early-stage success”.

The Montepuez Ruby Project consists of three licenses covering 15,800 hectares directly adjacent to the world’s largest ruby deposit which is mined by the London-based company Gemfields. So far, Gemfields has held six auctions of Montepuez rubies which have netted a total of 195 million US dollars.

Mustang Resources also holds a majority interest in two diamond exploration licences along the Save River, in central Mozambique, which are downstream from the Murowa and Marange diamond fields in Zimbabwe. In addition, Mustang holds the rights to a graphite resource near the world class graphite deposits discovered by Syrah Resources and Triton Minerals.

Despite the announcement, shares in the company fell on the Australian Securities Exchange by one Australian cent to four cents.

Source: AIM