Modern Mining Marchh 2017

MINING News

Mustang makes “spectacular” graphite discovery at Caula ASX-listed Mustang Resources reports it has made a spectacular high- grade graphite discovery at its 80 %-owned Caula project, located along geological strike of Syrah Resources’world-class Balama graphite project in northern Mozambique. Each of the first five diamond drill holes at Caula returned exception- ally high grades of up to 26 % Total Graphitic Carbon in multiple 1 m samples/intersections. Graphite was also intersected over extensive widths of 14 m to 87 m (downhole based on an incline of between 55 deg and 60 deg), provid- ing strong evidence that Caula is both a large and extremely high-grade deposit with graphite mineralisation starting at shallow depth in the oxi- dised zone near surface. The Caula project sits within Mustang’s Balama project licence areas. Due to the highly successful results at Caula, Mustang says it has decided to name this project in its own right. The licence areas which do not form part of Caula will continue to be referred to as the Balama project. The Caula core has been despatched to SGS, a leading Perth laboratory, which will assess its metallurgical characteristics. These results, combined with the assays from the holes referred to above, will be used to calculate a maiden JORC resource estimate. Mustang also intends to undertake a comprehensive analysis of flake size distribution and preliminary flowsheets for high-quality graphite concentrate products. Mustang Managing Director Christiaan Jordaan said the results showed Caula was set to be a Tier 1 graphite project. “It is already clear that Caula will be one of the highest-grade graphite deposits in the world,” he said. “This high grade will enable us to generate a top-quality product at a relatively low cost, maximising margins and providing pro- tection against any price volatility.”  Xtract delivers DFS on Manica gold project in Mozambique The Definitive Feasibility Study (DFS) for the open-pit operation of Xtract Resources’Manica Fair Bride gold project in Mozambique has been com- pleted by Minxcon. The DFS indicates that the project has an after-tax IRR of 41,1 % at a gold price of US$1 262 per ounce. The project life is seven years with an average gold grade of 2,62 g/t producing 215 293 recovered ounces. The direct cash cost (C1) is estimated at US$556 per ounce and the all-in sus- taining cost (AISC), including royalties and capital, at US$862 per ounce. The capex is put at US$43,68 million with project payback being achieved within two years. “I am pleased to report that the DFS has produced a robust project which is neither complex nor capital demanding,” says Colin Bird, Xtract’s Executive Chairman. “The project has major upside potential which can be exploited later against a fully paid for processing plant. Opportunity exists for hard rock consolidation which we are exploring. The alluvial opportunity is extensive and we are currently discussing and negotiating third party mining contracts. We are already working on reducing capital numbers and introducing practical engineering to further reduce risk and enhance project financial parameters.” 

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