Mustang ships first rubies from Mozambique

PERTH (miningweekly.com) – ASX-listed gem producer Mustang Resources has completed the commissioning of the processing plant at its Montepuez ruby project, in Mozambique, and has sent its first commercial parcel of rubies to customers in the US.

The company told shareholders on Friday that production at Montepuez was currently ramping up to the targeted rate of 525 t/d, which is forecast to result in a substantial increase in monthly ruby production.

“The initial results following the plant relocation suggest we can triple throughput rates,” said Mustang MD Christiaan Jordaan.

“At the same time, we have achieved a key milestone for Mustang with the first commercial shipment of rubies recovered through bulk sampling, as well as our highly successful prospecting teams that form part of our local community engagement and employment programme.”

Jordaan said that the shipment would play a vital role in helping Mustang to place market value on its rubies, as well as growing awareness and understanding about its stones among customers.

The first commercial batch of rubies sent to the US included two rare 24 ct stones, and is aimed at enabling Mustang to obtain further expert opinion about the range in potential ruby values and the best marketing strategy for the stones.

“As a result, we will be better placed to estimate the revenue we can generate from our rapidly growing production profile,” Jordaan said.

Since the inception of the bulk sampling at Montepuez, Mustang has recovered some 1 638 ct of rubies. Prospecting team activity has also resulted in the recovery of an additional 13 314 ct of ruby and corundum, of which 5 406 ct was included in the 6 221 ct parcel dispatched to the US.