A mining company with a key focus on two Mozambique projects, has announced its maiden mineral resource estimate, and the results are strong.
Mustang Resources released a statement this week revealing that it has completed a JORC-compliant vanadium Mineral Resource estimate for its Caula Vanadium Graphite Project in Mozambique.
Caula, in the Measured Category, has 22Mt at 0.37% vanadium pentoxide which translates to a total of 81,600 tonnes of contained vanadium pentoxide.
The new vanadium estimate coincides with the company’s existing graphite resource, which is c5Mt at 13%.
The company is currently finalising an updated graphite Mineral Resource.
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,” Dr Olivier said.
“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.”
Pending the results of the scoping study, Mustang is committed to fast-tracking the project’s development. First graphite production is scheduled for mid-2019.