https://www.miningweekly.com

Mustang to delay Montepuez plant upgrade to focus on second ruby tender

1st November 2017

By: Creamer Media Reporter

     

Font size: - +

JOHANNESBURG (miningweekly.com) – ASX-listed Mustang Resources will delay the planned plant upgrade at its Montepuez ruby mine, in Mozambique, which will reduce the company’s expenditure and allow it to focus on preparations for its second tender.

This decision was taken following the conclusion of a maiden tender, held from October 27 to 30, in Mauritius, during which it sold eight bid schedules, totalling 29 463 ct, for gross proceeds of about A$713 456.

Prices ranged from A$6/ct to A$1 944/ct, and averaged A$24.21/ct.

Mustang had taken 405 000 ct to tender, more than double the initially planned 200 000 ct; however, 13 bid schedules offered for sale did not reach their reserve prices and will be held over to the next tender, which will be held in mid-2018.

The company had initially planned to reinvest a portion of the proceeds from the maiden tender to increase its processing plant capacity to between one-million and two-million tonnes a year, compared with the current processing capacity of about 328 000 t/y.

Mustang MD Christiaan Jordaan on Wednesday said the tender results were clearly disappointing, but noted that the company had gathered valuable market intelligence for future tenders.

“The feedback from buyers and the results make it very clear that we need to offer increased quantities of rubies in each category. This is because buyers and their jewellery customers need to be certain that there are enough similar rubies available to enable them to produce the required number of any particular jewellery item.

“The tender process has also enabled us to identify those categories which are in high demand. We will now focus on building the inventory required by the market,” he said.

As part of the strategy to build the inventory required by the market, 96 000 t of existing surface stockpiles of ruby-bearing gravels will be processed in the coming months.

Further, pitting and exploration activities will focus on areas now identified to host the most sought-after rubies.

Mustang’s bulk sampling has only covered a small part of the licensed areas and the company believes there is potential to identify additional high-value rubies within its 193 km2 project area.

Exploration will focus on areas to the east of the existing bulk sample pits and the company also plans to acquire rights to explore in additional licence areas in the Montepuez ruby field.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Projects

Image of lithium ore
Bougouni lithium project, Mali – update
Updated 2 hours 17 minutes ago By: Sheila Barradas

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.151 0.185s - 107pq - 2rq
Subscribe Now