Currently exploring for economic deposits of Heavy Mineral Sands (HMS) in the world-class southern part of Mozambique, MRG Metals Limited (ASX:MRQ) has a portfolio of 13 high calibre targets identified on its Corridor Central and Corridor South projects showcasing significant discovery over a huge area from surface of high grade Total Heavy Mineral.
Recently, the Company reported significant development within the Corridor Central and Corridor South tenements, during the quarter ended 31 March 2020.
Post the release of the update, investors noticeably demonstrated keen interest in this metals and mining Company, as the MRQ stock soared by 33.33% after the trade session on 30 April 2020 and quoted $ 0.008. In the past one-year, the stock has delivered returns of 30%.
Let us cast an eye on the events and results of the quarter on the focus tenements-
Developments in Corridor Central Project (6620L)
The first target of the Project, Koko Massava has kept MRQ in headlines for all the right reasons. It is a heavy mineral sand deposit, predominantly ilmenite enriched and is deemed to be a low-cost and high-grade discovery, which was delivered for shareholders rapidly using a focused auger and aircore drilling exploration program.
During Quarter 3, the remaining three (Batch 2,3 and 4) batches of aircore drill samples were processed at Western Geolabs (Perth) and assays were received and announced for all.
Batch 2 Highlights-
- The most significant hole was 19CCAC124
- It returned an uncut downhole average of 5.79%THM over the length of the hole from the surface to a depth of 51m, including 39m @ 6.28% THM from 12-51m
- Maximum assay over 3m of 11.90% THM
- Slime values were moderate, with a range of 4.36%–36.36% and an average of 17.61%
- The second most significant hole was 19CCAC133, which returned an uncut 51m @ 5.73% THM (Table 1), with a maximum grade interval of 11.63% THM (30-33m).
- Hole 19CCAC125 returned the highest grade from an individual sample interval with 14.81% from 33-36m. It achieved an uncut 54m @ 5.69% THM from 0-54m
- In terms of overall Slime characteristics 98 of 256 primary samples contained Slime values >20%. This makes The range of Slime within the batch is 4.36% to 43.16%, with overall average of 18.68%
Noteworthy Result- MRQ believes that the host sand will be amenable to typical dry mining methods and standard gravitational HMS pre-concentration.
To read about the Batch 2 Results in detail, CLICK HERE- MRG Metals Reveals Significant Assay Results From Second Aircore Drilling at Koko Massava, Remaining Results Awaited
Batch 3 Highlights-
- The best hole was 19CCAC109, which assayed a maximum of 14.51% THM
- It comprised an uncut downhole average of 5.92% THM over 54m from surface, including 36m @ 7.21% THM from surface to 36m, and includes 9m @ 11.97% THM from 27-36m.
- The second most significant hole was 19CCAC143, which returned an uncut 51m @ 5.75% THM, with a maximum grade sample interval of 14.11% THM
- Between the visual estimation and laboratory result for THM%, the average of the absolute differential is only 1.25% THM
To read about the Batch 3 Results in detail, CLICK HERE- MRG Metals’ Third Aircore Drilling Results Indicate Continued Heavy Mineral Grades at Koko Massava
Batch 4 Highlights-
- The best Aircore hole is 19CCAC161, with a maximum of 10.88% THM, ended with 9.53% THM from the interval 51-54m
- It comprises an uncut downhole average of 6.53% THM over 54m from 0–54m, including 24m @ 5.00% THM from 0-24m, and 30m @ 7.74% THM from 24-54m
- The second most significant hole was 19CCAC159, which ended with 6.70% THM from the interval 48-51m, returned an uncut 51m @ 6.39% THM with a maximum grade sample interval of 9.70% THM (42-45m). This hole.
- Reportedly, many other zones of high grade (>5% THM downhole average) occur in the northwest, southwest, and alongside the flank of the Limpopo River valley.
To read about the Batch 4 Results in detail, CLICK HERE- Excellent Final batch Aircore Drilling Results at MRG Metals’ Koko Massava.
These results led to a significant Maiden Mineral Resource being announced in April of 1,423,000 million tonnes at 5.2% of Total Heavy Minerals. For details please click here : Significant Outcomes from Koko Massava MRE Well Place MRQ in Global Titanium Feedstock Industry
Hand Auger drilling at Koko Massava
During the March quarter, MRQ undertook hand Auger drilling at Koko Massava, expanding the high grade HMS footprint to the east and southeast.
Planned and now completed, 11 of the 17 auger holes drilled 174.2 metres, containing average downhole visual estimated grades of >3%THM. 32 holes (20CCHA186–197;199-216;222-223) are mainly on the northeast and southwest portions of the target area. The range of average downhole visual estimate THM grades is 0.6–4.7%. 245 samples have been collected in the 32 holes (including QAQC ones).
Developments in Corridor South Project (6621L)
At the 6621L, MRQ targeted Poiombo and Nhacutse, its second and third targets of the HMS Projects. Both targets have demonstrated early successes. Let’s look into their developments during the quarter-
Aircore Drill Program at Poiombo
The reconnaissance phase Aircore drill program was conducted post the excellent visual estimates of THM grade from hand auger holes over the central, eastern and western portions of the target. Comprising of 10 holes, 4 holes of them-the intersecting grades suggest strandline style mineralisation, is completed with significant initial visual results of THM grades.
- Two holes (20CSAC352 and 20CSAC356) yielded individual 3m sample intervals with visual estimated grade >10% THM, best interval with estimated THM grade of 19.5%
- These very high estimated THM grades affirm the discovery of a zone of HMS mineralisation that can extend from surface to depths of >30m and is laterally extensive
- The most significant results were returned from hole 20CSAC356, with an average downhole result of 6.1% visual THM from surface, drilled to 51m depth. It had a maximum of 19.5% visual THM in the sample interval 33-36m, with the adjacent 30-33m sample interval containing 10% visual THM and it ended in 8.0% visual THM in the 48m-51m interval
- The second most significant hole was 20CSAC352 with 5.5% downhole average visual THM over 36m from surface, with 10.3% visual THM from 18-21m and an end-of-hole sample interval from 33m-36m of 5.0% visual THM
- A total of 8 of the 10 holes have >3.0% downhole average visual estimated THM from surface to hole depths ranging from 36m–51m.
To read about the Aircore drill program at Poiombo in detail, CLICK HERE- MRQ Pursues Poiombo- Aircore Drilling to Begin, Stock in Green Zone
Hand Auger Drilling at Nhacutse
After high grade mineralisation was defined in 2019 auger holes at the Nhacutse target, MRQ undertook Reconnaissance hand auger drilling which has now been completed. The initial visual results of the wide-spaced drilling have provided more very encouraging high grade HMS mineralisation, with 62% of auger holes demonstrating uncut, average downhole visual estimated grades >4% THM and 57% of holes end in sample intervals with estimated THM grades of >4%. The current footprint is approximately 3km X 1km.
Of the 21 auger holes drilled, best result was provided by hole 20CSHA296, drilled to 12m depth with 5.2% average visual THM. It has a maximum of 5.6% visual THM in the sample intervals 0.0-1.5m and 1.5-3.0m and ended in 4.7% visual THM in the 10.5m-12m interval.
Another significant hole was 20CSHA281 with an average downhole grade of 5.0% visual THM over 12m and maximum of 6.1% visual THM in the 3.0-4.5m interval.
Some areas still remain to be tested in the east and west of the target.
To read about the Hand Auger Drilling at Nhacutse in detail, CLICK HERE- Post Koko Massava & Poiombo, MRG Metals Attains Impressive THM Grades at Nhacutse
Other Updates from the March 2020 Quarter
Besides developing the targets at the HMS Projects, the Company and Mandalay Resources, its JV Partner continued to chase potential sale opportunities.
On the corporate end, MRQ issued 16 million fully paid ordinary shares upon the conversion of Class C Performance Rights and 11.87 million fully paid ordinary shares upon the exercise of MRQOB options, raising $118.7k.
To Directors or their Nominee, the Company issued 6 million fully paid ordinary shares and 3 million free attaching MRQOB options, which have an exercise price of $0.01 and an expiry date of 20 December 2020, raising $60k.
At the end of the quarter, cash and cash equivalents amounted to $1.11 million, well funded for continuing exploration.
With developments fostering well and fast at MRQ’s lucrative HMS enriched project portfolio, it will be interesting to gauge the contribution it makes to the growing demand of HMS in the world.