Currently focused on the Corridor Projects Heavy Mineral Sands (HMS) in Mozambique, MRG Metals (ASX: MRQ) spent the quarter ending 31 December 2019 in exploring for economic HMS deposits in the southern part of Mozambique. The Southeast African nation is host to the largest HMS titanium feedstock resources in the World and contains some World-class mineral sands mines.
For the quarter, activities were focussed within the Corridor Central (6620L) and Corridor South (6621L) tenements. The highlight for the period was the Koko Massava target, MRQ’s first target, confirmed by excellent Auger drilling results.
Highlights of the Mozambique HMS Projects
On 16 January 2020, MRQ released its quarterly report for the quarter ending 31 December 2019, highlighting the encouraging progress made in the Koko Massava target in the Corridor Central Tenement-
Corridor Central Tenement
- Phase 1 drilling (undertaken by Bamboo Rock Drilling Limitada) of wide spaced holes at 500m x 1000m commenced in the northeast and progressed systematically along drill lines to the southwest to completion in mid-November.
- The Company instantly started to commence Phase 2 infill drilling based on encouraging results of the Phase 1 Aircore drilling. Holes located at 250m x 1000m and 500m x 500m centres are the areas of highest estimated visual Heavy Mineral Grade, where the Phase 2 drilling was completed.
READ HERE FOR AUGER EXTENSION DRILLING
- As of 25 November 2019, a total of 48 Phase 1 and 34 Phase 2 Aircore holes have been completed at Koko Massava, comprising 4,112.5m of drilling.
- Towards the end of the quarter, the Company received the first batch of Aircore drill samples (heavy liquid separation analysis done by Western GeoLabs in Perth) representing the first 8 holes of 82 holes drilled to date at Koko Massava. Interestingly, the extensive mineralised footprint remains open in all directions.
- The significant lateral and vertical extent of the mineralised footprint are confirmed by the highly significant lab assay results.
- The available laboratory data set shows the Aircore holes 19CCAC112 to 119 attained an uncut average downhole grade 3.70 percent to 6.23 percent THM, with hole depths ranging from 51to 75m.
- MRQ assured the significant potential for definition of a high grade, large tonnage HMS mineral resource.
- In Quarter 1, 2020, additional new lab results for Aircore drill samples are likely to be updated.
READ HERE FOR ASSAY RESULTS FROM AIRCORE DRILLING
Aircore Drilling at Koko Massava (Source: MRQ’s Report)
Extensive Flow of Information Expected in the Coming Weeks
The second Aircore sample batch was fully permitted by the Ministry of Mineral Resources on 26 November 2019 and arrived in Perth 15 December 2019 with results expected in January 2020. The third and fourth (final) batch of Aircore samples are expected to be processed by the laboratory in January with results expected late January and early February. The Company has engaged Greg Jones of IHC Robbins to define the scope and deliverables for a JORC code compliant Mineral Resource Estimate (MRE) and Technical Report.
Moreover, the mineral assemblage, a key value driver for the HMS projects is being looked at. Samples have been selected from auger drill work over the Koko Massava target to obtain additional mineral assemblage data. These will form a foundation for additional and more comprehensive mineral assemblage characterisation that will be needed for the MRE which is expected to be published Q1 2020.
Corridor South Project
This tenement demonstrated the potential for further discoveries, along with Koko Massava. Auger drilling identified extensive new zones of high-grade HMS, with Excellent drill results received at Nhacutse, Poiombo and Bungane targets.
- The Poiombo target (TMI Anomaly 10) and Nhacutse target (Thorium Anomaly 6) indicate the potential for the discovery of two new extensive zones of high-grade HMS mineralisation.
- A high-grade mineralised footprint is presenting from auger drilling at Nhacutse target.
- Poiombo target is also showing significant potential for a further discovery, based on early auger drilling of an ENE-WSW trending TMI magnetic anomaly.
- The first data set for Corridor South tenement confirms the significant potential for discovery of high grade, large tonnage HMS mineralisation, which translates into 28% of holes end in >4% THM and 76% of holes ended at 10.5m in HMS with grade >3% THM.
- These auger drilling results further reinforce the significance of auger drilling as an integral part of the comprehensive methodology and systematic approach implemented by MRQ for HMS exploration across its Corridor projects in Mozambique since acquisition.
- In addition to these significant results at both Nhacutse and Poiombo targets, 8 other auger holes returned significant results with uncut average downhole grades ranging from 3.10% - 5.20% THM in the Thorium Anomaly 5 (Bungane) target area.
On the corporate end, MRQ was successful in completing a placement to Directors of $199,500 and a placement to raise $1,250,000, before costs. 28.50 million ordinary shares were issued to Directors at an issue price of $0.007. 12,000,000 Class C Performance Rights and 12,000,000 Class D Performance Rights to the Directors.
125,000,000 fully paid ordinary shares and 62,500,000 free attaching MRQOB options were issued to institutional and sophisticated investors at the issue price of $0.01. Moreover, 6,875,000 fully paid ordinary shares and 3,437,500 free attaching listed options to acquire fully paid ordinary shares were issued to Pinnacle Equities Pty Ltd as capital raising fees for capital services provided.
At the end of the quarter, MRQ had $1,388,000 in cash and cash equivalents. The stock last traded at $0.019 on 16 January 2020 and has generated an impressive return of 280% in the past six months. The stock ended 20 January 2020 at $0.014 per share.
To gauge on the 2020 Expectation, please read Market Awareness Growing for MRG Metals, Extensive News Flow Expected in Early 2020.
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