The world’s only publicly listed ruby miner, Mustang Resources (ASX: MUS), has reported a further increase to the ruby inventory it will be taking to its maiden tender this Friday 27 October 2017 – making it more than double the original amount.
Initially, 200,000 ruby carats were to be taken to the tender, but earlier in the month the company reported this number had risen to 352,260 carats.
In today’s announcement the number has swelled again – this time to 405,000 carats.
The boost in ruby inventory is a result of “highly successful” operational ramp up at the company’s Montepuez mine in Mozambique.
Mustang Resources managing director Christiaan Jordaan added the “pivotal result” was due to Montepuez’s “quality” and “enormous potential”.
This Friday’s closed bid tender will be sold to 42 registered ruby buyers from Thailand, India, Sri Lanka, Hong Kong and Europe.
As part of the company’s substantial expansion strategy, it will be kicking off an upgrade to its processing plant which involves installing an optical sorter in the existing plant, and procuring a new 300 tonne per hour jig plant with its own optical sorter to boost recoveries and efficiencies.
The upgrade is anticipated to lift processing capacity from 432,000 tonnes per annum to 2 million tonnes per annum.
Completion of the upgrade has been targeted by July 2018.
Additionally, further exploration drilling has been planned across the project area.
“It is increasingly clear that Montepuez can generate production and cash flow on a much greater scale,” Mr Jordaan said.
He added the upcoming exploration program would help sustain increasing production throughout the initial 10-year mine life.
Mustang Resources has targeted ruby sales in excess of 1 million carats via a further two tenders in 2018.
Since its $0.05 share price in August, Mustang Resources’ stock has soared more than 240% to yesterday’s close of $0.17.