Name of the Project
Caula graphite and vanadium project.

Location
Mozambique.

Client
Mustang Resources.

Project Description
Caula contains an exceptional combination of high-grade (13%) total graphitic carbon and could deliver high percentages of super jumbo, jumbo and large flakes.

A strategic review has found that the most effective way of developing Caula involves a two-stage development strategy.

Stage 1 comprises a robust, low-cost mining operation producing about 100 000 t/y of ore for 10 000 t/y to 15 000 t/y of high-grade (97% carbon) graphite concentrate.

From the start of operations, vanadium will be extracted to a concentrate. This will be sold to a vanadium producer or stockpiled for future production of refined vanadium pentoxide (V₂O₅) chemicals. The Stage 1 graphite plant is being designed to allow for future incorporation of all processing equipment into the larger Stage 2 graphite plant.

The sale of graphite and vanadium products produced in Stage 1 will be used to secure binding offtake agreements and associated finance required for Stage 2 development.

Stage 2 entails the expansion of mining operations to between 300 000 t/y and 600 000 t/y of ore.

A large full-scale processing plant capable of delivering from 50 000 t/y to 75 000 t/y of high-grade (97% carbon) graphite concentrate will be built.

A full-scale vanadium concentrate processing plant, capable of producing refined vanadium products (99.9% purity V₂O₅ and other vanadium chemicals such as vanadium sulphate) for the fast-growing aerospace alloy and battery markets, will also be built.

With a hypothetical ore grade of 0.4% V₂O₅, a 600 000 t/y mining operation could produce about 2 000 t/y of V2O5 (98% and 99.9% purity V₂O₅ chemicals), with a current market value of more than $60-million a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Stage 1 of the project development is expected to be completed and produce sellable products in the first half of 2019.

Latest Developments
Mustang has received strong results from preliminary ore sorting testwork conducted on drill core from its Caula project.

The testwork demonstrated that Caula ore is highly amenable to sensor-based ore sorting. Results showed that an ore sample with no visible waste could be split into high- and low-grade streams.

X-Ray transmission- and conductivity-based (EM) sorting were evaluated, with the EM sorting generating the best result. The EM sensors evaluate the proportion of electrically conductive mineral (in this case graphite) in each rock particle. Vanadium values are closely associated with graphite and show a similar response to sorting.

Ore sorting enables wasterock and low-grade ore to be separated from run-of-mine ore. Sorting saves costs by rejecting waste rock and low-grade ore ahead of expensive processing steps such as milling and froth flotation. In many cases, sorting delivers additional environmental benefits to projects owing to reduced tailings volumes and enhanced tailings storage stability, besides other factors.

Key Contracts and Suppliers
TOMRA Sorting (preliminary ore sorting testwork).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Mustang Resources, tel +61 8 9217 2400 or email info@mustangresources.com.au.