AUSTRALIA’S MUSTANG RESORUCES SECURES FUNDING FOR MOZAMBICAN RUBY PROJECT

MAPUTO, Australian mining company Mustang Resources says it has raised a loan of 8.5 million Australian dollars (about 6.7 million US dollars) to help cover the expense of developing its ruby mine in Montepuez, in the northern Mozambican province of Cabo Delgado.

Its managing director, Christiaan Jordaan, said Thursday that the funding arrangement marked another key step in Mustang’s growth as it continued to recover high-quality rubies from its recently upgraded processing plant and ongoing artisanal development programme at Montepuez, where its total ruby inventory now stands at around 132,000 carats.

“This facility ensures we are fully funded until the first closed bid tender of our rubies in October this year and provides us with the ability to maximise the number of rubies to be tendered for sale in October, he added.

Mustang’s Montepuez Ruby Project consists of four licences covering 19,300 hectares directly adjacent to the world’s largest ruby deposit, being developed by London-based Gemfields.

So far, Gemfields has held eight auctions of Montepuez rubies which have generated more than 280 million USD between 2014 and 2017. The stockbroking firm Hartleys released a research note on July 17 which speculated that at least an equal amount of informal production may have come out of Montepuez during the same period.

Hartleys reported that since Mustang Resources established the presence of ruby bearing gravels on its licences in 2016, it had undertaken bulk sampling which had produced 8,400 carats of rubies. The research note added that the best bulk sampling grades were found in June this year in a shallow gravel pit within a newly acquired licence.

The report added that most of Mustang’s rubies were acquired from contracted local prospectors at a cost of between two and ten USD a carat.

Mustang is now looking to hold its first ruby auction in October 2017, when it expects to put 200,000 carats on sale. Hartleys estimates that the auction could raise ten million USD.

Source: NAM NEWS NETWORK

AUSTRALIA’S MUSTANG RESORUCES SECURES FUNDING FOR MOZAMBICAN RUBY PROJECT

MAPUTO, Australian mining company Mustang Resources says it has raised a loan of 8.5 million Australian dollars (about 6.7 million US dollars) to help cover the expense of developing its ruby mine in Montepuez, in the northern Mozambican province of Cabo Delgado.

Its managing director, Christiaan Jordaan, said Thursday that the funding arrangement marked another key step in Mustang’s growth as it continued to recover high-quality rubies from its recently upgraded processing plant and ongoing artisanal development programme at Montepuez, where its total ruby inventory now stands at around 132,000 carats.

“This facility ensures we are fully funded until the first closed bid tender of our rubies in October this year and provides us with the ability to maximise the number of rubies to be tendered for sale in October, he added.

Mustang’s Montepuez Ruby Project consists of four licences covering 19,300 hectares directly adjacent to the world’s largest ruby deposit, being developed by London-based Gemfields.

So far, Gemfields has held eight auctions of Montepuez rubies which have generated more than 280 million USD between 2014 and 2017. The stockbroking firm Hartleys released a research note on July 17 which speculated that at least an equal amount of informal production may have come out of Montepuez during the same period.

Hartleys reported that since Mustang Resources established the presence of ruby bearing gravels on its licences in 2016, it had undertaken bulk sampling which had produced 8,400 carats of rubies. The research note added that the best bulk sampling grades were found in June this year in a shallow gravel pit within a newly acquired licence.

The report added that most of Mustang’s rubies were acquired from contracted local prospectors at a cost of between two and ten USD a carat.

Mustang is now looking to hold its first ruby auction in October 2017, when it expects to put 200,000 carats on sale. Hartleys estimates that the auction could raise ten million USD.

Source: NAM NEWS NETWORK