Following its disappointing inaugural ruby tender last week, Mustang Resources (ASX: MUS) had some positive news for the market today – announcing a maiden resource for its Caula graphite project, near the Syrah Resources’ recently commissioned Balama graphite mine in Mozambique.
According to Mustang, the maiden resource of 5.4 million tonnes grading 13% total graphitic carbon for 702,600 tonnes of contained graphite “firmly establishes Caula as one of the highest-grade graphite deposits in the world”.
Mustang managing direction Christiaan Jordaan said the resource was based on a small portion of the company’s total target area.
“The mineralisation remains open in all directions and there is excellent potential to grow the deposit significantly with a third round of drilling, particularly along the large-scale geophysical anomaly which has been defined.”
Mr Jordaan added follow up drilling was expected to kick-off in the next few weeks.
The graphite is amenable to the graphite and lithium battery market with metallurgical testing recovering high grade concentrates above 95%.
Additionally, more than 55% of the graphite tested was classified as either jumbo or large flake.
Mustang owns 80% of the project which is located in a renowned graphite province and near Syrah’s Balama and Battery Minerals’ Montepuez graphite projects.
Mustang’s first maiden ruby tender disappoints investors
Less than a week ago, Mustang’s stock price took a beating after the company reportedly sold less than 8% of its ruby inventory, bringing in substantially less revenue of A$713,456 that anticipated.
The flop triggered a spiral in the company’s share price as it plunged from heights of A$0.19c to close Friday just under A$0.04c.
However, this latest news has offered Mustang stock holders some hope as the company’s stock price wiped itself off the floor an lifted more than 23% to hover at A$0.049 in late afternoon trade.