Mustang Resources: Caula Project – Maiden Vanadium Mineral Resource

(firmenpresse) - Mustang Resources: Caula Project - Maiden Vanadium Mineral Resource

Measured Vanadium Mineral Resource of 22 Mt at 0.37% V2O5 is in addition to Caulas Graphite Mineral Resource of 5Mt at 13%TGC

Key Points

- Total Maiden JORC Resource of 22 Mt (at) 0.37% vanadium pentoxide (V2O5) (0.2 % grade cut-off) at the Caula Vanadium-Graphite Project in Mozambique
- The entire Vanadium Resource is in the Measured Resource category
- Vanadium Resource is subdivided into two zones:
- Oxidised Zone - 8.9 Mt (at) 0.31% V2O5 for 27,400 tonnes contained V2O5 (0.2% grade cut-off)
- Fresh Zone - 13.1 Mt (at) 0.41% V205 for 54,200 tonnes of contained V2O5 (0.2% grade cut-off)
- Total contained V2O5 of 81,600 tonnes (~180 Mlb)
- Current V2O5 price is of US$18.50/lb (US$40,500/tonne) (98% V2O5)
- Substantial scope for further growth in the Vanadium Resource through exploration
- Chinese vanadium demand jumped 15% in May 2018 from April as steel mills prepared to switch to making higher-strength steel1
- 3,000t of vanadium used in batteries in 2017, twice as much as reported in 20161
- Following the merger of Mustangs ruby project with Fura, Mustang now ideally positioned to become a leading vanadium and graphite company

Mustang Resources Ltd (ASX: MUS, FRA: GGY) is pleased to announce that its Caula Vanadium-Graphite project in Mozambique has taken another key step towards development with the completion of the maiden JORC-compliant vanadium Mineral Resource estimate.

The Mineral Resource, which is all in the Measured category, is 22Mt at 0.37% vanadium pentoxide (V2O5) for a total of 81,600 tonnes of contained vanadium pentoxide.

This is in addition to the existing graphite Resource at Caula of 5Mt at 13% Total Graphitic Carbon (TGC). Mustang is currently finalising an updated graphite Mineral Resource estimate.

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.

Geology of the Caula Graphite Deposit

The Caula deposit is located in northern Mozambique, the graphite mineralisation is hosted in quartzitic schists of the Xixano Complex. The most common lithologies include Graphitic Schists, Gneisses and thin Pegmatoidal zones. Sulphides are occasionally logged but are usually absent. The surrounding country rock consists of Quarzitic and Micaceous Schists and Gneisses.

The project area is situated in the Mozambique Belt of the East African Orogen, and contains highly metamorphosed meta-sediments and meta-volcanics. The rocks of the East-African Orogen are dated 850 - 620 Ma in which metamorphic facies vary from amphibolitic to granulitic.

The mineralised zone is contained within a reclined isoclinal fold structure which dips at roughly 60 degrees to the west (Figure 1). Due to the regions tectonic history these meta-sediments have been altered to the extent that no sedimentary structure remains.
http://www.irw-press.at/prcom/images/messages/2018/44081/Maiden Vanadium Resource_20072018PRcom.001.png
Figure 1. Locations of Drill holes and the plan view of mineralisation

Drilling, Sampling and Sub-sampling Techniques

The drilling program comprised of one RC (reverse Circulation) and 16 DD (Diamond Drilling) boreholes. The initial part of the hole was drilled with PQ (III) until the rock was competent to be drilled with HQ (III). Drill core was orientated wherever possible. The mineralised core was sampled as half (Leco analysis) and quarter (metallurgical test work) core, with the remaining quarter retained in the stratigraphic sequence in the core trays. Appropriate QA/QC samples (standards, blanks, duplicates and umpire samples) are inserted into the sequence as per industry standard.

Sample Analysis

Sample preparation and analysis was completed by SGS in Johannesburg. Sampling procedure which include drying, crushing, splitting and pulverizing ensures that 85% of the sample is 75 micron or less in size. A split of the sample is analysed using a LECO analyser to determine total carbon in graphite (TGC%) content. A second split of the sample is prepared for element analysis by XRF to determine V2O5 content. Rougher and multiple re-grind and cleaner flotation, Final concentrate PSD and fraction assays.

Resource Estimation Methodology

The geological models used for the resource estimation was created in Voxler (Version 4.2.584), a modelling package developed and distributed by Golden Software in Colorado. The deposit was divided into an upper oxidised zone and a lower fresh zone. Once a specific grade volume has been calculated a weighted average density is applied to the volume and a tonnage is determined.

Weighted averaging for sample length was applied. No grade truncations were applied. A cut-off grade of 0.2% has been applied. Grade-tonnage curves were produced and could be used to determine the effect of cut-off grades on remaining mineralised tonnages, but the drilled resource is calculated as intersected in-situ. The calculated grade is weighted for representative mass, as calculated in Voxler.

Cut-off Parameters

A 0.2% V2O5 grade cut-off was applied. The modelling is limited by drilling extent. The drilling have not intersected and hence delineated the outer edge of barren host rock. The physical limits of the mineralisation will be established with additional future drilling.

Grade-tonnage curves were produced (See Figures 2 and 3) and the influence of various cut-off grades can be investigated. The physical deposit boundaries have not been intersected in the drilling work to date and hence the model is suspended within graphite and roscoelite mineralised rock. The western and northern deposit boundary (at shallow depth), is expected to be fixed with the next phase of drilling. The eastern and southern boundaries are open to at least 200m and several kilometres respectively.

Caula Vanadium Resource Estimate

The Caula Mineral Resource estimate is based on 16 diamond drillholes totalling 2,233.21 metres (484.72m in 2016 and 1,748.49m in 2017) and one reverse circulation (RC) drillhole totalling 99 metres (Figure 4). Drillholes are spaced approximately 85 metres apart along a 540 metre strike length. With the exception of drillhole MORC004 (-77°), all holes were drilled at inclinations of between 55° and 60° from the horizontal.

The drillhole samples were submitted to SGS in Randfontein (South Africa) for analyses as well as to SGS (Malaga) and Nagrom, Perth for metallurgical testwork. In total, 1,128 assay results were generated and these were used with the drillhole data to complete the Maiden Vanadium Resource estimate.

Grade estimation was completed using an inverse distance squared method. The deposit was divided into an upper oxidised zone and a lower fresh zone. Points of equal grade within the model boundary are draped with a wireframe shape (of which the anisotropy settings are defined in the gridder module) and the volume for the shape is calculated in Voxler. This is repeated for grades 0.01% V2O5 to 0.65 % V2O5 for the oxidised zone and up to 1.30 % TGC for the fresh zone.

Once a specific grade volume interval had been calculated (by difference) a weighted average density was applied to the volume and a tonnage determined.

The Mineral Resource estimate for the Caula Vanadium Deposit is reported using a cut-off grade of 0.2% V2O5 (vanadium pentoxide). The Measured Mineral Resource totals 22 million tonnes at an average grade of 0.37% V2O5 for 81,600 tonnes of contained V2O5 (vanadium pentoxide).

The results of the Mineral Resource estimate are summarised in Table 1 below.

Drillhole information and reporting in accordance with the JORC Code 2012 Edition are included as Appendices to this announcement.

Table 1. Measured Mineral Resource estimate for the Caula Vanadium Deposit (at 0.2% V2O5 cut-off grade)

Caula V2O5 Deposit - Mustang Resources - as at 17 Jul
y 2018 (0.2 %
V
2O5 Cut-off)
Resource VolumeDensitGTISAverage ContainedResource
Block (M y (Mt Grade V Categor
m (ton/) (% 2O5 (tonny
3) m V es
3) 2O5) )
Oxidised 3.5 2.550 8.9 0.31 27,400 Measured
Zone

Fresh 4.9 2.650 13.10.41 54,200 Measured
Zone

Total 8.4 2.609 22.00.37 81,600 Measured

The grade-tonnage curve for the oxidised zone is shown in Figure 2 below. The Oxidised Zone displays the following grade-tonnage relationship: at a cut-off grade of 0.1% V2O5 the deposit will have as a balance 12.6Mt of mineralised tonnes at an average grade of 0.26% V2O5, for 34 000 tonnes of contained graphite. At a cut-off grade of 0.2% V2O5 the deposit will have as a balance 8.9Mt of mineralised tonnes at an average grade of 0.31% V2O5, for 27 400 tonnes of contained graphite. At a cut-off grade of 0.3% V2O5 the deposit will have a balance of 3.9Mt of mineralised tonnes at an average grade of 0.38%, for 14,800 tonnes of contained V2O5.
http://www.irw-press.at/prcom/images/messages/2018/44081/Maiden Vanadium Resource_20072018PRcom.002.png
Figure 2. The V2O5 Grade-Tonnage curve for the Oxidised Zone of the Caula deposit.

Table 2. The V2O5 cut-off grades and tonnages for the Oxidised Zone of the Caula deposit.
Cut-Off Tonnes Grade Contained
Grade V
2O5
(% V2O5) (Mt) (% V2O5) (tonnes)
0.1 12.6 0.27 34 000
0.2 8.9 0.31 27 400
0.3 3.9 0.38 14 800
0.5 0.3 0.56 1 800

The grade-tonnage curve for the Fresh Zone is shown in Figure 3 below. For the Fresh Zone the following relationship is seen from the grade-tonnage curve; At a cut-off grade of 0.1% V2O5 the deposit will have a balance of 17.1Mt mineralised tonnes at an average grade of 0.35% V2O5, for 60 200 tonnes of contained V2O5. At a cut-off grade of 0.2% V2O5 the deposit will have a balance of 13.1Mt mineralised tonnes at an average grade of 0.41% V2O5, for 54 200 tonnes of contained V2O5. At a cut-off grade of 0.3% V2O5 the deposit will have a balance of 9.3Mt mineralised tonnes at an average grade of 0.48%, for 44 900 tonnes of contained V2O5.
http://www.irw-press.at/prcom/images/messages/2018/44081/Maiden Vanadium Resource_20072018PRcom.003.png
Figure 3. The Grade-Tonnage curve for the Fresh Zone of the Caula Graphite deposit.

Table 3. Cut-off grades and tonnages for the Fresh Zone of the Caula deposit.

Cut-Off Tonnes Grade Contained V
Grade 2
O5
(% V2O5) (Mt) (% V2O5) (tonnes)
0.1 17.1 0.35 60 200
0.2 13.1 0.41 54 200
0.3 9.3 0.48 44 900
0.5 2.5 0.72 18 200

Mineral Resource Classification Criteria

The resource is classified as Measured. The core losses in the DD boreholes were assigned 0% V2O5 values as a conservative measure. The CP has no reason to doubt the input data from the core logging to the laboratory results. The estimate is conservative and probably understated in both tonnage and grade.

The surface area of 12.2 Ha is covered by 17 regularly spaced boreholes for an average grid of just less than 85 m squared.

In addition, the geovariance which was calculated over 13 ranges with 24 data-pairs shows a sill distance of 170m. This calculation is based on information from 16 boreholes, and may well change as it gets updated with new drilling information. Based on this geovariance, the drill spacing at an average of 85m is considered to be sufficient to determine a measured resource.
http://www.irw-press.at/prcom/images/messages/2018/44081/Maiden Vanadium Resource_20072018PRcom.004.jpeg
Figure 4. Mustangs Caula Graphite & Vanadium Project, EM depicting the graphitic anomaly and the exploration drilling to date

Mining and Metallurgical Methods and Parameters

The resource estimation has assumed that the deposit could potentially be mined using open cut mining techniques. No assumptions have been made for mining dilution or mining widths, however mineralisation is generally broad.

Syrah Resources Ltd (ASX:SYR) has the Balama graphite project located down-strike on an extension of Caula mineralisation. In 2014 Syrah Resources (ref Syrah Resources Update on Vanadium Metallurgy dated 8 April 2014) reported the results of vanadium recovery testwork on their ore. It was noted that that the application of WHIMS and mica flotation processes to the graphite flotation tailings was effective in recovering vanadium and could achieve a combined concentrate grade of > 3% V2O5. Further work showed that commercial grade vanadium pentoxide (>98% Purity) could be produced from this vanadium concentrate.

Mustangs metallurgical testwork conducted to date at Independent Metallurgical Operations Pty Ltd (IMO) and Nagrom, both located in Western Australia, has shown that the vanadium reports to the tailings during the graphite flotation process. Vanadium recovery testwork on the flotation tailings showed that a portion of the vanadium could be recovered and concentrated by WHIMS (Wet High Intensity Magnetic Separator. Additional vanadium could be recovered from the WHIMS tailings by a froth flotation procedure aimed at recovering and concentrating micaceous minerals including roscoelite. This work is at a preliminary stage but it has demonstrated strong similarities between the Caula and Balama ores. Ongoing testwork is aimed at optimising vanadium recovery and concentrate grade.

Project Area Potential

The Caula Project is located within a world-class graphite province and there is significant potential to expand the maiden Vanadium Resource estimate through ongoing exploration and drilling.

In the immediate vicinity of the Caula discovery, graphite mineralisation has now been defined over a 540m strike length. This mineralisation is up to 230m wide (estimated true thickness) and the depth is completely open-ended at the limit of the current drilling.

A new program of diamond and reverse circulation drilling has been planned to test for both up-dip and down-dip extensions to the Caula deposit in this area.

In addition to the potential to define additional graphite and vanadium mineralisation immediately adjacent to the Caula discovery, there is also very strong potential to define high grade graphite mineralisation over the much larger project area.

The Caula discovery is located at the northern end of a suite of large-scale geophysical (TEM) anomalies that extend over an 18km strike length within Mustang's tenements (see Figure 5). Drilling at the Caula site confirms a strong spatial correlation between the TEM anomaly and high grade graphite drill hole intersections. The larger-scale TEM anomaly has received minimal drilling to date and therefore remains largely untested.

Mustang proposes systematically to drill test the large-scale TEM target through progressive step out drilling from the Caula discovery. This drilling has commenced.
http://www.irw-press.at/prcom/images/messages/2018/44081/Maiden Vanadium Resource_20072018PRcom.005.jpeg
Figure 5. Large-scale untested SkyTEM anomaly within the greater Caula Graphite and Vanadium Project area.

The Company is extremely encouraged by the results received to date from its maiden Vanadium Resource Estimate and the Caula deposit as a whole. The combination of high grade drilling results, positive initial metallurgical testwork, a large V2O5 maiden Measured Resource estimate, large-scale untested exploration targets and the project's location within a demonstrated world-class graphite-vanadium province confirm the project's potential to create significant future value for the Company.

As previously reported, due to unexpected delays in receiving the final vanadium and graphite assay results back from the independent laboratory, the completion of the maiden vanadium resource estimate as well as the upcoming graphite resource update was delayed. The delay further caused a delay in the estimated completion of the Scoping Study to Q3 2018.

Vanadium Pricing and Demand

Worldwide, the major use of vanadium is as an alloying agent in full alloy and high strength low alloy steels. China has recently increased the minimum specification for reinforcing steel used in buildings and as a result, domestic vanadium consumption is expected to increase by 10,000 tonnes per year (Metal Bulletin, August 2017). The vanadium market has already experienced a structural shift, changing China from being a net exporter of vanadium to becoming a net importer of vanadium. The use of vanadium in vanadium redox flow batteries (VRFB batteries), used for large scale energy storage is set to drive a further increase in demand. Consequently, vanadium supplies have tightened and the price of vanadium has increased sharply over the last two years to current levels of US$18.6/lb (~US$40,500/tonne)2, making it the best performing battery metal of 20173. Demand for vanadium is reasonably expected to increase due to demand for use in steel and battery development. Chinese vanadium demand jumped 15% in May over the prior month, as steel mills start preparing for the switch to higher-strength steel1. In 2017, 3,000t of vanadium was used in batteries, twice as much as reported in 2016, and this feeds into industry forecasts that these figures will at least double again in 20181.

For and on behalf of the Board
Green Roscoelite Mica

Dr. Bernard Olivier
Managing Director

FOR FURTHER INFORMATION, PLEASE CONTACT:

Managing Director:
Bernard Olivier
bernard(at)mustangresources.com.au
+61 (0) 408 948 182
+27 (66) 4702 979

Media & Investor Relations:
Paul Armstrong
paul(at)readcorporate.com.au
+61 (0) 8 9388 1474


1 Source: Mining Journal 28 June 2018
2 Based on 18 July 2018 pricing of US$18.6/lb (US$40,500/tonne) for 98% Vanadium pentoxide delivered in China. Source: vanadiumprice.com
3 Best performing battery metal of the year isnt cobalt, Mark Burton. Bloomberg. January 26, 2018

OMPETENT PERSONS STATEMENT:

Information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Johan Erasmus, a Competent Person who is a registered member of the South African Council for Natural Scientific Professions (SACNASP) which is a Recognised Professional Organisation (RPO) included in a list posted on the ASX website. Mr Erasmus is a consultant to Sumsare Consulting, Witbank, South Africa which was engaged to undertake this work. Mr Erasmus has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results. Mr Erasmus consents to the inclusion of the data in the form and context in which it appears.

Information in this report that relates to the ore sorting and sample composites of the Caula Graphite & Vanadium Projects is based on information compiled by Dr. Evan Kirby, a Competent Person who is a registered member of the South African Institute for Mining and Metallurgy (SAIMM), which is a Recognised Professional Organisation (RPO) included in a list posted on the ASX website. Dr Kirby is a consultant who was engaged by the company to undertake this work. Dr Kirby is a Non-Executive Director of the company. Dr Kirby has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Kirby consents to the inclusion of the data in the form and context in which it appears.


FORWARD-LOOKING STATEMENTS:

This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to the Companys planned exploration program and other statements that are not historic facts. When used in this document, words such as could, plan, estimate, expect, intend, may, potential, should and similar expressions are forward-looking statements. Although the Company considers that its expectations reflected in these statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statement.

APPENDIX 1 - RC DRILLHOLE SUMMARY TABLE

RC drillhole included in this Mineral Resource estimation. Drill hole coordinates WGS 84 UTM - Zone 37S. All TGC grades reported for the intersections seen below.

Drill East North Dip AzimutEOH From To (m)Interv%TGC
Hole (m) (m) h Depth (m) al
(m) (m)

MORC004484939856334-77.9 115.5 99 0 17 17 4.48
4

22 78 56 12.40
87 93 6 11.40


APPENDIX 2 - DD DRILLHOLE SUMMARY TABLE

Note - drillhole coordinates WGS 84 UTM - Zone 37S.

DD drillholes drilled in November/December 2016 - refer to ASX announcement dated 6 November 2017 for additional information pertaining to these five drillholes

Drill East North Dip AzimutEOH From To Interv%TGC
Hole (m) (m) h Dept (m) (m) al
h (m)
(m)

MODD001485,048,563,5-55 153 65.6810 14 4 20.98%
0 94

17.4 20.443.04 20.56%
21.4424.443 21.87%
26.4435.449 14.03%
38.4442.444 12.44%
43.4453.8610.42 17.58%
59.4465.686.24 9.34%

MODD0024850578563110-55 43 63.1419.0421 1.96 19.58%
31.6433.051.41 8.43%
37 43.066.06 13.16%
44.7146.762.05 8.62%
56.5458.131.59 14.50%
62.6963.140.45 8.06%

MODD0034849668563488-55 115 158.414.8521.426.57m 15.01%
2

26.4228.422m 5.52%
30.6331.310.68m 15.50%
50.3453.593.25m 13.60%
63.1164.421.31m 12.70%
66 66.780.78m 6.98%
68 75.137.13m 21.10%
80.9 90 9.10m 13.53%
100 114 14m 13.09%
116 122 6m 8.83%
122 129 7m 18.15%
129 137 8m 19.94%
137 144 7m 13.76%
144 146 2m 1.99%
146 158 12.42m19.53%

MODD0044849498563339-60 91 97.0417 20.543.54m 8.55%
21.2222 0.82m 7.98%
22.8924 1.15m 13.60%
25.3227 1.22m 10.30%
27.3928 0.65m 9.16%
28.6130 0.93m 6.89%
30.0532.542.35m 11.35%
32.9137.043.93m 17.08%
37.3239 1.68m 2.73%
39 43 4m 12.50%
43 45 2m 3.30%
45 49 4m 17.52%
56.5459.543m 6.26%
61.5768.546.97m 17.69%
70.4279 8.58m 18.08%
79 93.2 14.2m 10.98%
93.2 97.043.84m 1.47%


DD drillholes drilled in November/December 2017

Hole WGS 84 EOH DipAzimuFromTo InterAverageAverage
ID UTM Depth th (m) (mval TGC V
(m) ) (m) % 2O5 %

Zone 37s
EastNorth
ing ing


MODD0485085634143 53.104.517 39 22 16.2 0.31
14 52 73 42 5

39 45 6 7.0 0.23
45 55 10 17.6 0.35
55 58 3 1.4 0.06
58 63 5 17.6 0.47
63 68 5 Gneiss Gneiss
68 10436 16.5 0.60
104 1106 0.1 0.37
110 1188 11.0 0.48
118 1246 17.3 0.49
124 13713 11.6 0.32
137 1436 19.8 0.41

Hole WGS 84 UTM EOH Dip AzimuFromTo InterAveragAverag
ID - Zone Dept th (m) (mval e TGC e
37s h ) (m) % V
(m) 2O5 %

EastiNorthi
ng ng


MODD0148505856336118 54.284.9917 31 14 16.7 0.36
5 7 2 6

31 34 3 GneissGneiss
34 37 3 0.1 0.02
37 89 52 9.2 0.25
89 95 6 3.7 0.07
95 11015 7.6 0.13
110 1188 GneissGneiss

Hole WGS 84 UTM EOH Dip AzimuFromTo InterAveragAverag
ID - Zone Dept th (m) (mval e TGC e
37s h ) (m) % V
(m) 2O5 %

EastiNorthi
ng ng


MODD014851085632680 54.470.9020 24 4 11.2 0.24
6 7 1 6

24 35 11 1.7 0.15
35 49 14 8.6 0.26
49 51 2 0.2 0.06

Hole WGS 84 UTM EOH Dip AzimuFromTo InterAveragAverag
ID - Zone Dept th (m) (m)val e TGC e
37s h (m) % V
(m) 2O5 %

EastiNorthi
ng ng


MODD0148515856318131 53.767.4814 20 6 17.0 0.31
7 8 0 1

20 23 3 6.1 0.23
23 26 3 0.3 0.35
26 38 12 GneissGneiss
38 39.41.49 8.4 0.31
9

39.447.68.17 GneissGneiss
9 6

47.648.20.57 19.8 0.37
6 3

48.250 1.77 GneissGneiss
3

50 53 3 11.1 0.16
53 56 3 13.5 0.33
56 64 8 13.0 0.30
64 70 6 1.8 0.08
70 75 5 5.9 0.14
75 78 3 0.2 0.02
78 84 6 9.5 0.34
84 94 10 6.4 0.10
94 97 3 0.8 0.10
97 107 10 7.1 0.15
107 115 8 14.2 0.40
115 121 6 8.2 0.23
121 125 4 14.8 0.33
125 131.6.1 7.7 0.13
1


Hole IDWGS 84 UTM DipAzimutEOH FromTo InterAveragAverag
- Zone h Dept (m) (m) val e TGC e
37s h (m) % V
(m) 2O5 %

EastiNorthi
ng ng

MODD0184851185634555 80 217.86 19 13 15.47 0.29
4 5 9

19 20 1 1.29 0.28
20 25 5 16.62 0.52
25 28 3 5.78 0.48
28 30 2 26.65 36.79
30 34 4 0.92 0.10
34 37 3 19.73 0.29
37 44 7 2.87 0.12
44 63 19 20.22 0.42
63 64 1 3.95 0.25
64 78 14 14.06 0.49
78 79 1 1.93 0.11
79 84 5 23.98 0.33
84 86 2 8.31 0.26
86 92 6 20.87 0.70
92 99 7 9.07 0.32
99 112 13 18.00 0.38
112 142 30 0.05 0.01
142 165 23 15.97 0.49
165 188 23 4.19 0.42
188 220.832.8916.14 0.78
9

Hole WGS 84 UTM DipAzimuEOH FromTo InterAveragAverag
ID - Zone th Dept (m) (m)val e TGC e
37s h (m) % V
(m) 2O5 %

EastiNorthi
ng ng

MODD014851585633755 73 127.96.9 18 11.1 10.45 0.27
9 2 2 6

18 19 1 0.24 0.09
19 23 4 8.38 0.30
23 25 2 1.29 0.19
25 30 5 14.36 0.40
30 32 2 2.35 0.23
32 34 2 9.25 0.33
34 39 5 4.14 0.15
39 45 6 10.24 0.41
45 82 37 7.87 0.27
82 89 7 19.17 0.53
89 95 6 4.07 0.12
95 99 4 15.10 0.41
99 100 1 0.06 0.02
100 105 5 8.97 0.21
105 108 3 15.53 0.43
108 109 1 3.27 0.12
109 123 14 15.27 0.41
123 127.4.96 3.86 0.13
96

Hole WGS 84 UTM DipAzimuEOH FromTo InterAveragAverag
ID - Zone th Depth (m) (mval e TGC e
37s (m) ) (m) % V
2O5 %
EastiNorthi
ng ng

MODD024852185632955 62 125.2948 51 3 1.25 0.09
0 2 1

51 57 6 15.77 0.35
57 63 6 5.40 0.16
63 95 32 9.83 0.24
95 98 3 1.26 0.03
98 11416 10.57 0.18
114 1184 1.14 0.03
118 1235 15.42 0.43
123 1252 0.05 0.02



Hole WGS 84 UTM DipAzimuEOH FromTo InterAveragAverag
ID - Zone th Depth (m) (mval e TGC e
37s (m) ) (m) % V
2O5 %
EastiNorthi
ng ng

MODD024851885634655 55 161.2922 23 1 14.21 0.40
2 1 5

23 24 1 0.05 0.09
24 34 10 16.43 0.32
34 38 4 1.77 0.21
38 41 3 14.08 0.60
41 42 1 1.67 0.51
42 66 24 15.52 0.41
66 67 1 2.83 0.16
67 78 11 15.92 0.43
78 79 1 5.09 0.08
79 93 14 15.90 0.40
93 94 1 0.41 0.02
94 11016 16.17 0.38
110 1166 6.02 0.22
116 13216 9.71 0.26
132 1331 0.21 0.03

Hole WGS 84 UTM DipAzimuEOH FromTo InterAveragAverag
ID - Zone th Dept (m) (m)val e TGC e
37s h (m) % V
2O5 %
(m)
EastiNorthi
ng ng

MODD034850285632955 93 95.547 20 13 14.16 0.33
0 9 7

20 21 1 3.88 0.42
21 25 4 12.26 0.25
25 27 2 2.58 0.12
27 35 8 13.30 0.31
35 42 7 3.44 0.27
42 49 7 12.03 0.34
49 51 2 4.41 0.22
51 57 6 15.77 0.29
57 60 3 3.64 0.33
60 61 1 19.30 0.35
61 62 1 5.09 0.14
62 65 3 12.27 0.30
65 95.530.543.09 0.09
4

Hole WGS 84 UTM DipAzimuEOH FromTo InterAveragAverag
ID - Zone th Dept (m) (m)val e TGC e
37s h (m) % V
(m) 2O5 %

EastiNorthi
ng ng

MODD034850085634255 79 131.215.423 7.56 9.98 0.27
1 1 2 4 4

23 30 7 17.49 0.42
30 31 1 1.23 0.63
31 33 2 18.25 0.40
33 36 3 6.37 0.09
36 48 12 22.67 0.35
48 49 1 2.37 0.06
49 51 2 17.25 0.27
51 56 5 6.14 0.18
56 90 34 16.51 0.41
90 94 4 0.30 0.02
94 100 6 12.96 0.37
100 101 1 0.69 0.03
101 121 20 7.89 0.17
121 124 3 2.48 0.09
124 131.7.24 12.53 0.30
24




Hole IDWGS 84 UTM - DipAzimuEOH FromTo InterAveraAverag
Zone th Dept (m) (mval ge e
37s h ) (m) TGC V2O5
(m) % %

EastingNorth
ing

MODD032485085 8563155 63 87.596 7 1 0.43 0.19
99

7 23 16 15.060.28
23 25 2 3.54 0.19
25 63 38 12.000.26
63 69 6 3.71 0.17
69 71 2 17.150.70
71 73 2 0.96 0.04


JORC CODE, 2012 EDITION - TABLE 1
APPENDIX TO ANNOUNCEMENT - 20 JULY 2018

Section 1: Sampling techniques and data.

CriteriaJORC Code MUS Commentary
Explanation

Sampling-Nature and 2015 Field Program
techniq quality of Samples have been taken from a
ues sampling Reverse Circulation (RC)
(
eg cut drillhole (MORC004) which was
channels, drilled by Mitchell Drilling, an
random chips, Australian company with a
or specific regional presence in Mozambique.
specialised Reverse circulation drilling was
industry used to collect 1m samples
standard (roughly 35kg) by an air cyclone
measurement which was reduced to a 3kg
tools sample by riffling. The
appropriate
to the drillhole collar location was
minerals generated based on results from
under a recently flown airborne
investigation,
such as down SkyTEM EM survey (refer to
previous MUS ASX
hole gamma sond announcements).
es
, or handheld A total of 77 intervals from RC dr
XRF illhole
instruments, MORC-004 were selected for
sampling.
etc). These
examples
should not be Drillhole intervals were selected
taken as for sampling based on geological
limiting the logging and samples showing no
broad meaning clear evidence of graphite
of mineralisation have been
sampling. excluded (except 1m into barren
zones) from the analysis
-Include completed by SGS Randfontein, an
reference to accredited
measures laboratory.
taken to
ensure sample The samples were riffle split on
a 50:50 basis, with one split
representivity pulverised and analysed for
and the Total Graphitic Carbon (TGC),
appropriate Total Carbon (TC) and Total
calibration Sulphur (TS) using a
of any
measurement Leco Furnace, and the remaining
tools or split held in
systems storage.
used.

-Aspects of 2016 Field Program
the Five cored boreholes were drilled
determination as part of the 2016 field
of program for the
mineralisation
that are Caula deposit. The diamond
Material to drilling (DD) was completed
the Public using a Boart
Report. In
cases where Longyear LF 90 drill-rig and the
industry core was recovered with HQ (III)
standard equipment. The contractor used
work has been for the 2016 drill program is
done this Major Drilling Group
would be International, a Canadian-based
relatively operation with a local presence
simple in Mozambique.
(
egreverse circ
ulation · Drillhole collar locations were
drilling was generated based on results from
used to a flown airborne
obtain 1 m
samples from SkyTEM EM survey which was
which 3 kg completed during 2015 (refer to
was previous MUS ASX
pulverised to announcements).
produce a 30
g charge for · Sampling is of HQ (III) DD
fire assay). core. A total of 298m of
In other mineralisation were sampled over
cases more five DD boreholes. One DD hole
explanation (MOD004) have been twinned with
may be an existing RC hole (MORC004)
required, for lithology and grade
such as where verification.
there is
coarse gold
that has · The core is photographed in
inherent sequence as the core is packed
sampling into the core trays at the drill
problems. site.
Unusual
commodities · The recovered DD core is cut
or lengthwise with a core splitting
mineralisation saw to produce 1m samples. Where
types lithological boundaries did not
( fit the 1m geometry or at end of
eg submarine
nodules) may hole sampling, the sample length
warrant was to be a minimum of 0.42m or
disclosure of a maximum of 1.68m.
detailed
information.
· Core is halved for normal
analyses. In the case of
duplicate analyses (1 in 20),
the core is quartered. In total
933kg of sample (Including
duplicates) was taken over 296
samples for chemical analyses.


· The remaining core is halved in
the mineralised zones to provide
a quartered sample for
metallurgical analysis. In total
334kg of sample over 296 samples
was taken for metallurgical

testwork.
· The remaining quarters and
halves are retained in
stratigraphic sequence in the
core trays. The remaining core
has been photographed, and the
trays wrapped in cling-film,
before it was put in container
storage on site at the Mustang
camp outside

Montepuez.
· Samples were submitted for LECO
analyses. Mineralised zone core
as well as 1m boundaries into
non-mineralised zone core were
submitted for
analysis.

· Initial metallurgical analysis
and flow-sheet

testwork was performed on 2
composited samples. The sampling
was split between the oxidised
and fresh mineralised
zones.



2017 Field Program
Eleven cored boreholes were
drilled as part of the 2017
field program for the

Caula deposit. The diamond
drilling (DD) was completed
using Boart

Longyear LF 90 drill-rigs and the
core was recovered with PQ (III)
and HQ (III) equipment. The
contractor used for the 2017
drill program is Major Drilling
Group International, a Canadian
based operation with a local
presence in Mozambique.


· Drillhole collar locations were
generated based on results from
a flown airborne

SkyTEM EM survey which was
completed during 2015 (refer to
previous MUS ASX announcements),
and from the 2016 core drilling
program.

· Sampling is of PQ (III) and HQ
(III) DD core. Sampling has been
completed.


· The core is photographed in
sequence as the core is packed
into the core trays at the drill
site.

· The recovered DD core is cut
lengthwise with a core splitting
saw to produce 1 m samples.
Where lithological boundaries
did not fit the 1m geometry or
at end of

hole sampling, the sample length
was to be a minimum of 0.50m or
a maximum of 2.00m.


· Core is halved for normal
analyses. In the case of
duplicate analyses (1 in 20),
the core is quartered.


· The remaining core is halved in
the mineralised zones to provide
a quartered sample for
metallurgical
analysis.

· The remaining quarters and
halves are retained in
stratigraphic sequence in the
core
trays. The remaining core has
been photographed, and the trays
wrapped in cling-film, before it
is put in container storage on
site at the Mustang camp outside

Montepuez.
· Samples were submitted for LECO
analyses. Mineralised zone core
as well as 1 m boundaries into
non-mineralised zone core were
submitted for
analysis.


Drilling-Drill type (e2015 Field Program
techniqg Reverse circulation drilling was
ues core, reverse used to drill a 5.5 inch
circulation, diameter borehole (MORC004). RC
open-hole drill chips were collected by an
hammer, air cyclone at 1m intervals for
rotary air logging and sampling.
blast, auger, Approximately 35kg per metre was
Bangka, collected by an air cyclone
sonic, which was reduced to a 4kg
sample by riffling.
etc) and
details
( Reflex Ezy shot tools were used
eg core to take down-hole survey
diameter, measurements to record
triple or
standard drillhole azimuth and dip.
tube, depth
of diamond 2016 Field Program
tails, · The core drilling was completed
face-sampling with a Boart
bit or other
type, whether Longyear LF-90 drilling rig. The
core is drilling equipment was HQ (III)
oriented and sized.
if so, by
what method,
· Drilling was planned to be as
etc). close to perpendicular as
possible to strike, and as close
as possible to true width
intersections.


· The borehole dip and azimuth
was surveyed at 3m intervals
from the bottom of the borehole
with a Reflex
EZ-
Trac tool. The maximum deviation
from the planned azimuth was
measured at
6
o in MODD003. The maximum
deviation from the planned dip
was measured at
5
o in MODD004.
· Final borehole collar positions
were surveyed with a handheld
GPS survey instrument, and the
collar elevations were projected
from the DEM as generated during
the

SkyTEM survey in 2015.
· The core was oriented with a
Reflex
Tool.

2017 Field Program
· The core drilling was completed
with Boart

Longyear LF-90 drilling rigs. The
drilling equipment was PQ (III)
and HQ (III) sized.


· Drilling was planned to be as
close to perpendicular as
possible to
strike
/foliation, and as close as
possible to true width
intersections.


· The borehole dip and azimuth
was surveyed at 3 m intervals
from the bottom of the borehole
with a Reflex
EZ-
Trac tool.
· Final borehole collar positions
were surveyed with a

differential GPS survey
instrument, and the collar
elevations were projected from
the DEM as generated during the

SkyTEM survey in 2015.
· The core was oriented with a
Reflex
Tool.

Drill -Method of 2015 Field Program
sample recording and The condition and qualitative
recover assessing estimates of RC sample recovery
y core and chip for MORC004 were determined
sample through visual inspection of the
recoveries 1m sample bags and recorded at
and results the time of sampling. A hard
assessed. copy and digital copy of the
sampling log are maintained for
-Measures data verification.
taken to
maximise
sample Recovery has been good with 35kg
recovery and + being returned per metre
ensure drilled.
representative
nature of the Due to the early stage of
samples. exploration work for the

-Whether a Caula project, no relationship
relationship between sample recovery and
exists grade is known to exist at this
between point.
sample
recovery and
grade and
whether 2016 Field Program
sample bias The condition and qualitative
may have estimates of DD sample recovery
occurred due were determined through visual
to inspection and measurement of
preferential the drilling core runs and
loss/gain of recorded at the time of recovery
fine/coarse at the drill rig. A hard copy
material. and digital copy of the sampling
log are maintained for data
verification.


· Core recovery measurements are
recorded for every
borehole.

· Where recoveries were found to
be less than 95%, the drill runs
were shortened to 1m, and
drilling speed lowered to
improve recovery.


· In some instances in the
oxidised zone (faulting,
jointing and severe oxidation),
core losses were unavoidable.
These losses are recorded, and
have been zero rated in terms of
grade for the

modeling of the Caula graphite
resource. The average core
recovery for the oxidised zone
is 83.1%.


· Recoveries in the fresh zone
were very good at an average of
98.8%.

2017 Field Program
The condition and qualitative
estimates of DD sample recovery
were determined through visual
inspection and measurement of
the drilling core runs and
recorded at the time of recovery
at the drill-rig. A hard copy
and digital copy of the sampling
log are maintained for data
verification.


· Core recovery measurements are
recorded for every
borehole.

· Where recoveries were found to
be less than 95%, the drill runs
were shortened to 1 m, and
drilling speed lowered to
improve recovery.


· In some instances in the
oxidised zone (faulting,
jointing and severe oxidation),
core losses were unavoidable.
These losses are recorded, and
have been zero rated in terms of
grade for the

modeling of the Caula graphite
resource. The average core
recovery for the oxidized zone
is 91%.


· Recoveries in the fresh zone
were very good at an average of
98%.


Logging -Whether core 2015 Field Program
and chip RC drill-chip samples were
samples have geologically logged by trained
been geologists. The
geologically
and drillhole (MORC004) is considered
by MUS to be part of a maiden
geotechnically drill program aimed at
logged to a identifying shallow graphite
level of mineralisation. Mustang used
detail to the results from this maiden
support program to prioritise target
appropriate areas, which then become the
Mineral focus of the 2016
Resource
estimation, drillhole definition programs.
mining Whilst the aim of this maiden
studies and drill program was not to produce
metallurgical a Mineral Resource estimate
studies. MORC004 was used for resource
estimation purposes in this
-Whether resource estimate.
logging is
qualitative
or Logging of RC drill holes
quantitative includes recording of lithology,
in nature. mineralogy, mineralisation,
Core (or weathering, colour and other
features of the samples. RC
costean, Chip trays are photographed.
channel,

etc) Geological descriptions and
photography. estimates of visual graphite
percentages on preliminary logs
-The total are semi-quantitative. All
length and
percentage of drillholes were logged in full.
the relevant 2016 Field Program
intersections · All holes drilled were logged
logged. in full and sampled by the site
geologists.

· All the logged information
which includes depth, lithology,
mineral assemblage, structural
information, Cg mineralisation
(laboratory data), collar survey
and logging geologists are
recorded in the field logging
sheets and in digital format.


· The recovered core is recorded
in sequence as digital
photographs.

· The analytical samples were
shipped by road to the SGS
Randfontein laboratory in South
Africa for analysis. The
analyses were completed by SGS
Randfontein, and have been used
to estimate the grade of the

Caula deposit in this CPR.
· Umpire samples have been
identified and were dispatched
to Bureau

Veritas in Centurion. These
analyses have been completed and
are included in the
CPR.

· The samples for metallurgy testw
ork
were dispatched via South Africa
to SGS Malaga in Perth,
Australia. The

testwork has been completed and
these results have been included
in this
CPR.

· The remaining core is in
storage at the Mustang
Exploration Camp near

Montepuez in Mozambique. The
remaining core is also recorded
in sequence in digital
photograph
format.

2017 Field Program
· All holes drilled were logged
in full and sampled by the site
geologists.

· All the logged information
which includes depth, lithology,
mineral assemblage, structural
information, Cg mineralisation
(laboratory data), collar survey
and logging geologists are
recorded in the field logging
sheets and in
digital
format.
· The recovered core is recorded
in sequence
as
digital photographs.
· The analytical samples are to
be shipped by road to the SGS
Randfontein laboratory in South
Africa for analysis. The
analyses are to be completed by
SGS Randfontein, and will be
used to enhance the initial
estimate of the grade of the

Caula deposit in the next CPR
update.

· Umpire samples have been
identified and have been
dispatched to Bureau

Veritas in Centurion.
· The samples for metallurgy testw
ork
were submitted for test work
once the analytical results are
available.


The remaining core is in storage
at the Mustang Exploration Camp
near

Montepuez in Mozambique. The
remaining core was also recorded
in sequence in digital
photograph
format.

Sub-samp-If core, 2015 Field Program
ling whether cut RC samples were collected on the
techniq or sawn and rig using riffle splitters to
ues and whether reduce the sample mass from 35kg
sample quarter, half to 4kg. Sample preparation of
prepara or all core the RC chip samples follows
tion taken. industry best practice in sample
preparation involving oven
-If non-core, drying
whether (105
riffled, tube oC), split (300g) and pulverising
sampled, to a grind size of 85% passing
rotary split, 75 micron. The sample
preparation for RC samples
etc and follows industry best
whether practice.
sampled wet
or Field QC procedures were adopted
dry. as
follows:
-For all
sample types, · Insertion rate for blanks - 5%
the nature, (1 in
quality and 20)
appropriatenes
s of the · Insertion rate for standards -
sample 5% (1 in
preparation 20)
te

Unternehmensinformation / Kurzprofil:
Leseranfragen:
Bereitgestellt von Benutzer: irw
Datum: 23.07.2018 - 08:54 Uhr
Sprache: Deutsch
News-ID 578569
Anzahl Zeichen: 171817

contact information:
Town:

Wien

Kategorie:

Business News

Diese Pressemitteilung wurde bisher 196 mal aufgerufen.


Die Pressemitteilung mit dem Titel:
"Mustang Resources: Caula Project – Maiden Vanadium Mineral Resource
"
steht unter der journalistisch-redaktionellen Verantwortung von

Mustang Resources Limited (Nachricht senden)

Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).

Alle Meldungen von Mustang Resources Limited