Mustang on track to sell 200 000 ct of rubies in October

JOHANNESBURG (miningweekly.com) – ASX-listed Mustang Resources’ ruby inventory has grown to 120 397 ct, paving the way for the company to meet its 200 000 ct target in time for its first closed bid tender, in October this year.

The growing inventory reflects in part the successful commissioning of the upgraded processing plant at Mustang’s Montepuez ruby project in Mozambique, as well as the discovery of a shallow secondary ruby deposit 3 km south-east of the plant.

During the commissioning process, it was found that a larger capacity recycling dam was needed to ensure sustainable water supply for the plant. The water is required to break and wash the clay out of the gravel. The optimised water recycling dam and plant will shortly be fully operational, allowing the plant to work at full capacity.

Mustang MD Christiaan Jordaan said the company’s strategy to generate substantial cash flow from Montepuez was well on track. “This will underpin our first closed bid tender and enable Mustang to demonstrate the cash flow potential of Montepuez. Work is now under way to select a safe-house facility and tender location. These sites are expected to be finalised within two months,” he noted.

Mustang further highlighted that the processing of gravels from bulk sampling in the key focus area of the new licence 3 km south-east of the plant is yielding high-quality secondary rubies.

To date, 5 692 m³ have been processed for 4 445 ct including consistent recovery of high-quality stones larger than 3 ct.