PERTH (miningweekly.com) – Ruby miner Mustang Resources will implement a number of measures to fine-tune its operational strategy, including temporarily suspending the artisanal miner development programme (AMDP), following disappointing results from its maiden tender.

Mustang earlier this month launched a review into the future of its operational and marketing strategies, after only 29 463 ct of rubies, from 405 000 ct on offer, were sold at its inaugural tender.

The ASX-listed miner on Thursday reported that the review had been completed, suggesting a number of actions, including refining the ruby grading system based on buyer feedback and re-grading the current ruby inventory.

The miner noted that the pre-auction grading of lots had been too broadly implemented, which resulted in overlaps between different qualities when viewed from a buyer’s perspective. This, in turn, resulted in lower prices being bid by buyers on many of the lots.

Selected rough ruby parcels from the re-graded inventory would be offered up for sale in the coming weeks and months in Asia, in smaller auction formats.

Furthermore, Mustang would also conduct a review of the AMDP based on the revenues to be received from the sale of AMDP rubies.

The AMDP sees artisanal miners working on Mustang’s licence area, with the company providing elementary washing and sorting equipment to the miners, along with logistical support for material transport. To date, the programme has yielded 360 206 ct, representing around 83% of the total ruby yield for Mustang.

Meanwhile, Mustang would also suspend bulk sampling activities at the onset of the wet season, with preference being given to processing surface stockpiles, which were currently estimated to host about 96 000 t.

The exploration emphasis would also shift towards lower-cost manual test pitting in order to establish a greater number of potential bulk sample test pit sites, while Mustang would also look to acquire prospective exploration tenements in the Montepuez ruby field.

Mustang on Thursday maintained that its Montepuez gem field had world-class ruby prospectivity, and that this, combined with the continued demand growth for rubies, warranted the continuation of the exploration programme.

The company said that its strategy with respect to its ruby projects would remain unchanged, and its intention was to continue exploration on the current project area through test pitting, drilling and bulk sampling to sell recovered rough rubies to generate cash flow to support ongoing exploration and development costs.

Ultimately, Mustang would move to a formal Joint Ore Reserves Committee-compliant mineral resource estimate and feasibility study for the Montepuez project, which would determine if the project presented an opportunity for feasible long-term commercial development.