A Technical Needle on HMS Explorer - MRG Metals Limited

  • Jan 02, 2020 AEDT
  • Team Kalkine
A Technical Needle on HMS Explorer - MRG Metals Limited

Heavy Mineral Sands (HMS) are a natural mineral concentrate which is often mined commercially. They ideally occur in sand, but usually in low quantities with their composition highly variable. The most common constituents of HMS include magnetite, garnet, ilmenite, and epidote.

Interestingly, HMS is not rare, but its area of occurrence is usually limited. They find their use in aerospace industry, foundry industry and to even generate electricity in nuclear reactors as well as in televisions and x-rays (colour and luminescence). Given their increasing demand in these industries, HMS is of utmost economic importance and has gained massive traction of late.

In this backdrop, we introduce to you an ASX-listed metals and mining exploration company - MRG Metals (ASX: MRQ), which has been currently focussing on its recently acquired Corridor Projects Heavy Mineral Sands in Mozambique.

Mozambique and MRQ’s HMS Development

Kenmare Resources, BHP and Rio Tinto are some of the mining magnates that were involved in the early discoveries of HMS in Mozambique, which is host to the largest HMS titanium feedstock resources in the World and home to major World-class mineral sands mines.

MRQ is tapping this lucrative opportunity via the HMS projects and has assembled a high calibre team with a technical and strategic competitive advantage to proceed with it. Consequently, exploration to date has shown excellent results, especially at the Koko Massava, the first target.

The Company has recently received its first highly significant laboratory assay results from Aircore drilling at the Corridor Central tenement (6620L), validating the substantial lateral and vertical extent of the mineralised footprint. According to the results, the first 8 of the 82 Aircore holes drilled attained an uncut average downhole grade 3.70% – 6.23% THM, with hole depths ranging from 51 m – 75 m. Additional new laboratory results for Aircore drill samples is expected in the coming weeks.

2020 - A year of extensive flow of information for MRQ

MRQ aims to complete the drill hole assaying and then deliver a maiden resource by the end of Q1 2020. 2020 is expected to be an exciting time for the Company, with-

· 2nd batch of assay results (expected in early January);

· 3rd and final 4th batch will follow soon after;

· Auger programs commencing in January at Koko Massava will test for further expansion of the 20 km2 footprint; and

· Initial targeted programs at Poiombo, Nhacutse and Linhuane (when permitted) are expected in the first half of 2020.

Technical analysis of MRQ

MRQ Monthly Chart (Source: Thomson Reuters)

The stock has recently given a fresh breakout on the monthly chart and the prices are currently trading well above the 21-period and 9-period exponential moving averages with a positive crossover (short-term EMA is crossing the long-term EMA from below), which further reflects that the stock is setting up for short to medium-term price action.

The prices sustained the breakout levels for two-months now, which further suggests that bulls are currently dominating the price action, which could be further inferred from the increasing volume trend.

The downtrend breakout is well supported by the large volume, and the 14-day Relative Strength Index is currently above its mean value of 50.0 at 69.481, which suggests that the stock might retest its breakout.

If the stock retests the breakout and manages to sustain over the downward sloping yellow trendline with decent volume, it would mark the onset of a new uptrend and failure to do so would continue the previous trend.

Additionally, on 31 December 2019, MRQ shareholders witnessed a year end gift, with the shares surging by 15% with a huge increase in volumes (~25 million shares traded as against average volumes of ~14 million). MRQ closed the day’s trade at $0.023, with a market capitalisation of $23 million.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

· 2nd batch of assay results (expected in early January);

· 3rd and final 4th batch will follow soon after;

· Auger programs commencing in January at Koko Massava will test for further expansion of the 20 km2 footprint; and

· Initial targeted programs at Poiombo, Nhacutse and Linhuane (when permitted) are expected in the first half of 2020.

Technical analysis of MRQ

MRQ Monthly Chart (Source: Thomson Reuters)

The stock has recently given a fresh breakout on the monthly chart and the prices are currently trading well above the 21-period and 9-period exponential moving averages with a positive crossover (short-term EMA is crossing the long-term EMA from below), which further reflects that the stock is setting up for short to medium-term price action.

The prices sustained the breakout levels for two-months now, which further suggests that bulls are currently dominating the price action, which could be further inferred from the increasing volume trend.

The downtrend breakout is well supported by the large volume, and the 14-day Relative Strength Index is currently above its mean value of 50.0 at 69.481, which suggests that the stock might retest its breakout.

If the stock retests the breakout and manages to sustain over the downward sloping yellow trendline with decent volume, it would mark the onset of a new uptrend and failure to do so would continue the previous trend.

Additionally, on 31 December 2019, MRQ shareholders witnessed a year end gift, with the shares surging by 15% with a huge increase in volumes (~25 million shares traded as against average volumes of ~14 million). MRQ closed the day’s trade at $0.023, with a market capitalisation of $23 million.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

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