MRG Metals’ Encouraging Lab Results For Nhacutse & Bungane, Stock Riding High

Summary

• MRG Metals has discovered numerous very high grade Aircore drilling targets, that continue to confirm strong visual estimates, from assay results - Owing to rapid and cost-effective auger exploration of Corridor Central & Corridor South tenements.
• Recent lab assay results from Auger drilling show that Bungane target contains highest grade auger hole for the sample batch and highest average grade auger hole drilled to date on the Project.
• At Nhacutse, consistency of high grade auger holes, large footprint of HMS mineralisation and near surface nature of mineralisation hint another significant HMS discovery.

Dedicatedly exploring for Heavy Mineral Sands (HMS) in the world class HMS location of Mozambique, MRG Metals Limited (ASX:MRQ) has been developing the Corridor Projects revealing the impressive potential of HMS resources from high grade targets. The Company continued its advancement spree and has provided significant laboratory assay results from auger drilling on the Nhacutse and Bungane targets, both located within the Corridor South tenement (6621L).

This significant update gained good market and investor traction, as MRQ was up by 20% on 6 July 2020 (AEST: 01:40pm) and quoted $ 0.012.

Let us dive into the details that possibly set the stock soar-

Overall Lab Results from Nhacutse and Bungane

Assay results from auger drilling on the Bungane and Nhacutse targets show that-

• All 50 holes attained an uncut average downhole grade >3% THM
• 32 of them have an uncut average downhole grade of >4% THM
• 11 of them have an uncut average downhole grade of >5% THM
• 16 holes end in ≥5% THM
• 7 holes were collared at surface with grade ≥5% THM

These laboratory results confirm there is a new high grade HMS mineralised zone emerging at Nhacutse, open in all directions at >4% THM, with a significant higher-grade core >5% THM.

At Bungane, lab results confirm the highest grade auger hole there was collared at surface in >7% THM.

At the targets, auger drilling has generated at least one new Aircore drill target to test the potential for extremely high grade >5%THM resource from surface to supplement Koko Massava (MRQ’s first target) in a mine start-up scenario. The target zone of 4 sqkm delivers yet another significant follow up target of potential multi year mine production (already representing circa 100mt) with surface grades suitable for mill feed and possibility of continued high grades below.

Nhacutse: Finest Auger Sample Lab Results

New auger data set confirms previous visual estimate data. Visual estimated THM% grades reported previously at Nhacutse noted footprint of HMS mineralisation to be ~ 3km x 1.9km with a long axis northeast southwest. New lab results support this interpretation, but more prominently define a 2.5km x 1.5km core of >5% average downhole THM.

Additionally, the results reinforce significant potential for definition of a new high grade HMS resource at Nhacutse. Below were the top 3 holes reported by the Company (in order)-

Nhacutse Lab Results Specifics

Oversize fraction characteristics of the auger sample batch have a range from 0.24%–1.54%, with a low average of 0.70%. In terms of visual results contrasted with lab results for the downhole THM grade averages, the range of absolute variance is 0.04%–1.60% THM.

Average visual grade was over estimated in merely 11 holes, with the over estimation only between 0.14%–1.09%. Average visual grade in remaining holes was typically under estimated by only <0.5% THM.

Bottomline: Nhacutse could yield another significant HMS discovery for MRG Metals, owing to consistency of high grade auger holes with >5% THM downhole average, a large footprint of the HMS mineralisation coupled with near surface nature of the mineralisation.

Bungane: Finest Auger Sample Lab Results

Notably, Bungane target contains the highest grade auger hole for this sample batch and highest average grade auger hole drilled to date by MRG Metals on the Corridor Projects (Hole 20CSHA312). Below were the top 2 holes reported by the Company (in order)-

Bungane Lab Results Specifics

Hole 20CSHA312 correlates directly with north end of a discrete high intensity thorium anomaly 1.3km X 0.5km. In the same anomaly, Hole 20CSHA330 was drilled at the south end and yielded 10.5m @ 3.79% THM. This is suggestive of very high grade mineralisation noted in hole 20CSHA312 that may be relatively localized or may not have been intersected in the south (as it collared a higher elevation).

Comparison of visual results contrasted with lab results for the downhole THM grade averages, shows the range of absolute variance to be 0.12%–0.92% THM. Average visual grade was typically over estimated, though variance was <1% THM.

Bottomline: Bungane results depict a relatively localized high grade zone owing to near-surface nature, very high grades, and consistency of the grade downhole with all samples >7% THM from surface. The area warrants additional follow-up drilling.

What’s in Store?

At Nhacutse, composite samples for mineral assemblage characterisation by Qemscan analysis are being prepared and will be reported once available. Additional auger sample results from remaining holes (particularly on the east side) will be reported once the sample batch is available and data has been validated and interpreted.

At Bungane, follow-up drilling will be an interesting watch.

Auger drilling will continue testing remaining outstanding district anomalies with Aircore drilling to follow. Chairman Mr Andrew Van Der Zwan informed that identified targets will be prioritised at completion of the Auger drilling, including comparable targets recently identified within Koko Massava and from recent Aircore drilling success at Poiombo, with a view to an Aircore program later this year. This will help MRG Metals gauge possibility of an even higher grade start-up resource to develop in the Corridor projects before Koko Massava.

Auger Drilling Particulars

Reported Auger drilling data forms part of a program of broad-spaced holes at 250m to 500m stations on traverses 500m to 1000m apart, designed to test geophysical anomalies. Laboratory results are for a batch of 377 samples (incl. QAQC samples) from 50 auger holes, comprising 540m of drilling.

Auger holes were cherry picked for lab analysis by filtering downhole visual estimated THM% (average). Samples attaining ≥3% average visual THM were selected for the analysis and sent to Western GeoLabs in Perth for heavy liquid separation analysis-

• Samples were initially oven dried and disaggregated if required by hand.
• They were then weighed and split to ~ 100g sub-samples, which were wetted and attritioned to ensure further breakdown of any clay aggregates.
• It was then de-slimed at 45µm to measure Slime percent.
• Consequently, sub-sample was screened at +1mm to remove and measure Oversize percent.
• +45µm-1mm fraction was then subjected to heavy liquid separation with tetrabromoethane at specific gravity of 2.95.

MRG Metals seems to be enjoying ongoing exploration success in the Corridor mineral province!

(Note: All currency in AUD, unless specified otherwise)