Mustang stages come back from ruby auction flop with high-grade graphite resource

Mustang Resources Caula graphite project drilling
Drilling at Mustang Resources' Caula graphite project.

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 Resources graphite project map Syrah Resources Montepuez
Location of graphite project areas in the Montepuez district.

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.

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