MRQ Skyrockets: Poiombo Auger Results Confirm High Grade HMS Mineralisation, Assay Results Soon

Summary

• Even with Mozambique operating in a COVID-19 restricted environment, MRG Metals has been able to continue exploration and revealing significant results and grades from its Corridor Projects that are Heavy Mineral Sands enriched
• The Company is on the verge of another significant discovery, supported by the very high grades intersected in strandline zones at surface and near surface
• Poiombo results have further underpinned the significant potential for definition of a new high-grade HMS resource; additional auger drilling is already planned

Exploring for Heavy Mineral Sands (HMS) in the world class HMS location of Mozambique, MRG Metals Limited’s (ASX:MRQ) stock was one of the hottest stock on the ASX on 11 June 2020. Trading in the lucrative metals and mining sector of the exchange, MRQ shot up by an astounding 80 % to close at $0.009 with over 89 million shares traded.

A possible reason for the skyrocketing stock performance can be attributed to the Company’s significant laboratory assay results from auger drilling on its Poiombo target within the Corridor South tenement (6621L) of its Corridor Projects.

Lab Assay Results from Auger Drilling on Poiombo

The laboratory assay results confirms the Auger visual estimate data and Aircore visual estimate data previously outlined by the Company for Poiombo. They further underpin the significant potential for definition of a new high grade HMS target emerging at Poiombo that remains open to the northwest and southeast. The results also confirm that the mineralised footprint extends to the west side of the main road and is up to 5km east-west.

• Overall, the results show 12 of the holes attained an uncut average downhole grade >4 % THM
• 3 of the 12 holes have an uncut average downhole grade of >5 % THM
• 6 holes end in ≥5 % THM, 5 holes were collared at surface with grade ≥5% THM
• Oversize fraction characteristics of the auger sample series show a range from 0.12% to 5.00 %, with an average of 0.83%
• From previous auger drilling, there is 9.0M @ 6.63 % THM (HOLE 19CSHA056) from surface which ended in 7.13 % THM

Let us now cast an eye on the most noteworthy results from the Auger drilling-

The best hole, 20CSHA254, was located south-central part of the target, outside of the interpreted magnetic anomaly. It contained a maximum individual grade of 5.91% THM from 9.0-10.5m. Slime values are moderate, with a range of 6.85 %-14.96 % and a reasonably low average of 12.44 %.

The second-best hole, 20CSHA259 is located on the northeast side of the magnetic anomaly and has a peak grade of 6.26% THM in the sample interval 9.0-10.5m.

Management View & Near-Term Outlook

“The program to date at Poiombo looks to have identified the potential for significant tonnage at very significant grades”- Chairman, Mr Andrew Van Der Zwan.

The significant assay results at Poiombo coupled with initial Aircore drilling results affirm the capability for a very large high grade resource from surface and in some areas continuing to depth, says Mr Van Der Zwan. He further states that the Company is on the verge of another discovery, supported by the very high grades intersected in strandline zones at surface and near surface- something expected from MRG Metals’ targeted programs, which can provide multiple infill aircore programs for later in the year.

With Mozambique still operating in a COVID-19 restricted environment, the Company has been able to maintain in country operations and will continue to do so safely until instructed otherwise. In the near-term-

• Heavy mineral concentrates from the holes are being selected for preparation of composite samples to submit for mineral assemblage characterisation analysis.
• Additional auger drilling is planned to further define the Poiombo target mineralised footprint, particulary on the southeast side.
• Aircore drill samples from the Poiombo program undertaken in March 2020 are now at Western GeoLabs for analysis with results expected by mid-June 2020.
• Auger samples from the Nhacutse target have arrived in Perth and are being quarantine treated before delivery at Western GeoLabs on about 12 June 2020.

Poiombo Overview

Located within the Corridor South tenement of MRG Metals’ Corridor Projects, the early potential of Poiombo to host a high grade HMS deposit was established in October 2019 from reconnaissance auger hole 19CSHA056 which is located in the heart of the mineralized zone reported in the results.

As described in the above figure, this hole was collared at surface in 5.95 % THM (0-1.5m) and ended in 7.13 % THM (7.5-9.0m) with a maximum of 7.26 % THM and delivered a downhole average of 6.63 % THM. Slime values related are moderate, with a range of 8.35 % -17.40 % and an average of 14.85 %.

Auger Drilling Details

The auger drilling was part of a program of broad-spaced holes at 500m stations on traverses 1000m apart and designed to test magnetic geophysical anomalies. Auger holes were chosen for lab analysis by categorizing average downhole visual estimated THM%, and samples that attained ≥3% average visual THM were chosen for the analysis and sent to Western GeoLabs in Perth for HLS/ heavy liquid separation analysis (with tetrabromoethane at specific gravity of 2.95)

After being oven dried and disaggregated if required by hand, they were split to ~ 100g sub-samples which was wetted and attritioned to guarantee further breakdown of clay aggregates, if any. After this, de-sliming at 45µm to measure Slime percent took place. The sample was then screened at +1mm to remove and measure Oversize percent followed by HLS analysis.