MRG Metals Reveals Impressive Drill Results from Nhacutse, Stock Soars

  • Apr 14, 2020 AEST
  • Team Kalkine
MRG Metals Reveals Impressive Drill Results from Nhacutse, Stock Soars

Efficiently exploring for Heavy Mineral Sands (HMS) in the world-class region of Mozambique, MRG Metals (ASX:MRQ) has been on a development spree at its Corridor Central & South Projects (referred as the HMS Projects), acquired in 2019. It recently reported very significant results from the current hand Auger drilling process at Nhacutse target (the Corridor South project), the Company’s third target at the HMS Projects.

Impressive Nhacutse Hand Auger Drilling Results

In March 2020, MRQ intimated that the Reconnaissance hand Auger drilling at Nhacutse had confirmed a zone of high-grade HMS mineralisation, with initial visual results of the wide-spaced drilling presenting very encouraging high-grade HMS mineralisation.

On 9 April 2020, MRQ reported that results from the hand Auger drilling at Nhacutse have been highly impressive. They have depicted expanded high-grade zones of HMS, over 5% visual THM (also at the Bungane target in Nhacutse’s Northwest’s realm.

The new visual outcomes of the wide-spaced drilling, in particular the holes 20CSHA311 till 379, showcase promising high-grade HMS mineralisation-

  • 55% Auger holes have uncut, average downhole visual estimated grades of over 3.5% THM
  • 45% end in sample intervals with estimated visual THM grades of over 4%.

Significant Hand Auger Drilling Results

The wide-spaced reconnaissance hand Auger drilling (at Nhacutse and Bungane) was devised to discover the radiometric as well as magnetic anomalies and follow-up formerly defined high-grade mineralisation. The most significant results from the holes 20CSHA311-379 are highlighted under-

Interestingly, the best hole 20CSHA347 is immediately adjacent to hole 20CSHA296 which, as previously reported, has an average visual grade of 5.2% THM from surface to 12m and ended with 4.7% visual THM at the 10.5-12m interval. Similarly, the most noteworthy result from the new zone east of Nhacutse, hole 20CSHA363 is immediately adjacent to hole 20CSHA364, on the same drill line which has an average visual grade of 6% THM from surface to 12m and ended with 6.1% visual THM at the 10.5-12m interval.

To date, the excellent Auger drill results from exploration on the projects has offered field data to assist a review of the target boundaries obtained from the airborne geophysical data.

Understanding Auger Drilling Details

The Auger drill holes were spaced at either 250, 500 or 1000m stations all along drill lines 500m and 1000m separately. The depths range from 1.0m–12m deep (avg. depth of 9.5m). Samples were collected (393 incl. QAQC samples in 58 holes) at 1.5m intervals downhole. Drill samples are split for export from the region to an HMS analysis laboratory in Perth for quantitative percent THM determination and heavy liquid separation.

The duplicate samples are generated and incorporated in the field at a frequency of 1 per 25 primary samples with standard reference material samples inserted in the field (frequency of 1 per 50 primary samples).

The Bungane Target Details

This target contains the highest-grade Auger hole drilled since exploration began on the Corridor projects in April 2019-

  • Hole 20CSHA312 comprises 12m @ 7.2% visual THM and directly correlates with discrete high intensity thorium anomalism 1.3km X 0.5km
  • It was collared at surface in 7.2% visual THM, had a peak visual grade of 7.8% in the interval 9.0-10.5m and ended in 6.8% visual THM from 10.5-12m.
  • Hole 19CSHA046 drilled in 2019 has a laboratory result of 10.5 @ 4.16% THM and is located 500m southeast of hole 20CSHA312 on the same drill line
  • The remaining significant holes at the target are at the north end and include 19CSHA044 with a laboratory result of 10.5m @ 4.16% THM and 20CSHA298 with 10.5m @ 4.3% visual THM
  • With 4% visual THM threshold, there is less continuity of HMS mineralisation at Bungane, compared to Nhacutse (based solely on wide-spaced drilling)
  • The broader thorium anomaly of the target is ~4.5km X 1.7km and further closer-spaced drilling is likely to offer better understanding of the continuity in near surface high grades.

Management View- Current Progress & Future News Flow

Pleased with the results, Chairman Mr Andrew Van Der Zwan acknowledged the discovery of significant quantity as well as quality mineralisation in the extension Auger program at the third target, with several holes demonstrating an estimated THM grades exceeding 5%.

He further intimated that the Company will notify about the Koko Massava MRE next week post the Easter break. The Mineral Resource Estimate is likely to demonstrate a substantial milestone for MRQ.

What’s worth noting is the fact that the ongoing fruitful exploration validates the potential for supplementary mill feed for the first target, Koko Massava from other targets. It also outlines the potential for an additional stand-alone resource/ the amalgamation into a regional resource base.

Meanwhile, MRQ has been ensuring to meet the protective requirements stipulated in the declaration by the Mozambique Government pertaining to the “State of Emergency” orders amid COVID 19.

Impressive Stock Surge

Post the release of the recent significant results from Nhacutse, investor traction seemed to be on a rise for the MRQ stock on ASX. Post market close on 9 April 2020, MRQ quoted $ 0.009, zoomed by 28.57% and is trading flat at $0.009 on 14 April 2020 (AEDT:02:07 pm). In the past one year, it has delivered returns of 80%.


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