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Currently developing the Corridor Projects of Heavy Mineral Sands (HMS) in the World’s most prolific HMS province of Mozambique, MRG Metals Limited (ASX:MRQ) has been gaining massive investor and media traction for its significant exploration program. The Company has a portfolio of 13 high calibre targets identified on its Corridor Central and Corridor South projects.
It has been successful in making a significant discovery of high grade Total Heavy Mineral (THM) over a large area from surface and a Mineral Resource Estimate remains underway, likely to be completed soon with a maiden JORC Resource expected.
On 27 February 2020, MRQ presented at the much-awaited Kalkine Media CEO & Small Cap Investor Conference in Sydney. Kalkine Solutions is an independent equity research, investment advisory firm and media house based out of Sydney with the key goal to provide rational investment ideas as well as financial and market update to clients to enable them to undertake judicious financial decisions and achieve success in complex and dynamic stock markets.
In the conference, MRQ intimated about its corporate snapshot, its skilled Board and management that are fully vested in the Company’s success, Project developments and its encouraging outlook.
Before diving into these details, let us graze through few reasons that would have possibly propelled MRQ to enter the booming business of HMS-
Why HMS?
Found in shoreline environments, HMS are ideally used for titanium minerals and zircon, both markets experiencing rising demand. Titanium is used as a TiO2 pigment in the paint, aerospace engines and its demand is soaring due to its strong, light weight, temperature-resistant properties. Its global pigment capacity was estimated at 6.3 Mt in 2018.
Considered the “Quality of Life”, TiO2 consumption soars with increase in disposable income.
Recent Developments at the First Target- Koko Massava
The first target of the Project, Koko Massava is located within the Corridor Central tenement (6620L). It was supported by an airborne magnetic and radiometric survey followed up by wide spaced historic drilling. Koko Massava has proved to be a rapid low-cost and high grade discovery area.
The Company has been drilling wide spaced and then infill grid Aircore drilling programs were launched over this target area, since September 2019.
As a result of MRQ’s fast-tracked exploration program, wherein Aircore drilling program was conducted in batches, promising results have been delivered. These are both unequivocal and significant, with high grade visual estimations recorded in the field-
Moreover, a zone of extremely high grade has been confirmed by the Aircore drill assays of over 5% THM downhole average measuring greater than 5KM X 1KM. Significant tonnage at the grades are substantially higher than the average of 5% THM, bound to sit within (and likely exceed) the extremely high grade zone.
The drill hole data is currently with IHC Robbins for a Mineral Resource Study.
MRQ’s HMS Exploration Strategy & Processes
The Company’s fast-tracked exploration program has truly indicated the huge potential of the target at depth and surface. Several strategies and processes were put into place and have executed their results timely.
Historic data from the Corridor tenements area was collated into a GIS database. Post this, an airborne magnetic and radiometric survey was flown over the Corridor Central and Corridor South tenements to facilitate data analysis, target generation and prioritisation.
Reconnaissance, followed by infill hand Auger grid drilling was completed at Koko Massava. Aircore drilling then successfully tested the Auger drilling and consequently, MRQ commissioned a Mineral Resource Estimate study.
MRQ’s Promising Outlook
2020 begun with a spree of developments and announcements, MRQ expects the year to be busy and eventful-
- The IHC Robbins work remains underway and is likely to be substantial
- MRQ’s goal is to establish maiden JORC Inferred and Indicated Mineral Resources
- The Company will include a mineralogical Study, for which 32 composite samples are being collected from representative geology/grade domains
- The Mineral Resource Study is bound to be complete by end of March 2020
- Next steps include scoping study and pre-feasibility study
- Interesting, partnering opportunity is bound to arise at Koko Massava
- Besides Koko Massava, MRQ will continue to explore for more targets in the Corridor Central and South Projects- Poiombo exploration and reconnaissance Auger samples at this second target already seem promising with the first Aircore drilling scheduled in March
- Nhacutse and the other 10 targets will be considered for exploration
- MRQ will continue to pursue development at Linhuane, Marao and Marruca, once tenement applications are approved, which will further add to the exploration portfolio to be tested under the strategy.
MRQ last traded at $0.007 on 28 February 2020 and has delivered returns of 75% in the last one year.
