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Walk through MRG Metals’ developments and opportunities

Image Source: Company presentation, June 2022

Highlights

  • MRG Metals Limited (ASX:MRQ) has a world-class Joint Ore Reserve Committee (JORC) classified Heavy Mineral Sands (HMS) discovery in the bag and is working on Scoping Study and Preliminary Economic Analysis- towards production.
  • The Company is exploring multiple tenements whilst progressing to mine development at Corridor Central and South Portfolio in Mozambique.
  • Besides progressing its HMS suite, MRG Metals has three Exploration Licence Applications (ELA’s) over a high potential Rare Earth Element (REE) and Uranium (U) project in Mozambique.

Junior ASX explorer MRG Metals Limited (ASX:MRQ) is continuing exploration and analysis to identify multiple very high-grade resources to turbo charge economics into Feasibility phase within existing and new targets. Chairman Andrew Van Der Zwan recently presented at The Junior Indaba Conference, Johannesburg, for Explorers, Developers & Investors in Junior Mining. Herein, he explained MRG Metals’ developments and opportunities.

MRG Metals- a significant HMS player

MRG Metals has six high calibre 100% owned HMS projects (746km2) and one further project under application in Mozambique- a world prolific HMS province. The Corridor Central and South Portfolio are contiguous tenements wherein MRG Metals’ discoveries have already produced 3 Mineral Resource Estimates (MREs), with further upside exploration.

MRG Metals’ projects, Source- Company presentation, June 2022

To date, MRG has identified over 300 MT @ 6.0% Total Heavy Mineral (THM) Joint Ore Reserve Committee (JORC) Resource. Additionally, progressive infill drilling continues to expand the portfolio of very high grade (>6%) from surface.

The Company is targeting early mine life feed across multiple targets. Pit optimisation is being driven by early mine life optimisation with no strip and high average grade throughput.

Interestingly, the exploration discovery costs (to Inferred Resource) are lowest in industry with discovery/tonne running at under A$2 cents/tonne.

Koko Massava developments

MRG Metals’ first target area, Koko Massava alone has the potential to become a mine start-up opportunity, as suggested by leapfrog modelling of assay, visually estimated grade from MRE and infill drilling. As per the updated MRE, a High-Grade Zone of 103 Mt @ 6.6% THM at a 5.5% cut-off grade at surface was delivered. An Indicated Mineral Resource of 557 Mt @ 5.1% THM and An Inferred Mineral Resource of 977 Mt @ 5.0% THM were also reported.

Notably, Koko Massava has the potential to become a >50 year mine. Ongoing exploration programs are levering off skills and efficiencies developed at Koko Massava.

The Company believes that ongoing pit optimisation will show multiple 20-50 MT pits with high grade from surface with no strip required. Besides, there is potential of very high grade zones at a cut-off grade of >6% THM.

Nhacutse & Poiombo developments

In April 2022, the Company announced updated JORC MRE for its Nhacutse and Poiombo deposits within Corridor South 6620 L licence. The new comprehensive study delivered a combined Indicated and Inferred Mineral Resource of 860 Mt @ 4.9% THM at the two sister deposits, which includes high-grade zones of 257 Mt @ 6.0% THM. Besides, the MRE displayed significantly better new mineralogy data and further confirmed the potential of MRG Metals’ Corridor Sands Projects in Mozambique.

Notably, MRG Metals is likely to soon announce an updated MRE to be undertaken for Nhacutse and Poiombo deposits to establish JORC Indicated Resource, incorporating new mineralogy data.

Scoping study & Preliminary Economic Analysis

MRG Metals has commissioned IHC Mining to begin an Engineering Scoping Study and Preliminary Economic Assessment for its Corridor Projects, focused on the Koko Massava, Nhacutse and Poiombo deposits. The Company is confident that the Scoping Study will support the mine development at the Corridor Projects.

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Infrastructure boost

As developments foster at the Company’s tenements, MRG Metals is poised to benefit from potential infrastructure boost in its operative region. Phase 1 of the Proposed Multibillion-dollar Chongoene Development Corridor Project (CDC) – a deep water seaport with proposed mineral processing zone is likely to begin next year.

Additionally, there is the Proposed African Renaissance Pipeline Project (ARP), which will deliver natural gas within Mozambique, South Africa and surrounds. The Company has submitted its expression of interest to utilise the ARP for supply of natural gas feedstock.

What’s in store?

MRG Metals recently applied for three Exploration Licence Applications (ELA’s) over a high potential Rare Earth Element (REE) and Uranium (U) project in Mozambique. The ELA’s are currently under review by the relevant government departments. MRG Metals is ready to commence field exploration as soon as the applications are granted.

Map of the location of MRG’s new Rare Earth and Uranium (10999 L, 11000 L and 11002 L) Exploration Application Applications (ELA’s) in relation to the other MRG exploration licences and the port city of Beira. Gold licences are granted, White licences are under application.

Besides, at MRG’s Marao project, three high priority targets were recently drilled. With aircore drilling completed, samples have been prepped and sent to mineralogy (VHM) and assay (THM) laboratories. Assay results are awaited.               

The Corridor Central and South progress is depicted below-

All in all, with a multi-billion dollar value of contained resource, MRG Metals’ emphasis is now on early mine life mill feed to ensure economic viability. Besides, the market cycle appears to be on the up-tick. The high calibre team with in-country experience and broader development capabilities is likely to take MRG Metals to infinite heights.


 


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