MRG Metals Uncovers Highest-to-date THM Grade at Zulene Anomaly

Summary

• MRG continues to conduct reconnaissance Auger drilling on various targeted anomalies of the Corridor HMS district.
• The continued exploration has focused on high-grading potential early mine life tonnage from surface.
• Recent exceptional drill results at Zulene anomaly have defined a high-grade HMS zone of >5% visual THM and delivered a record new high in terms of estimated average THM grade of 8.7%
• MRG Metals now has several new zones with potential identified outside of the Koko Massava, its first target, deposit.

A cost effective, technically motivated exploration company, MRG Metals (ASX:MRQ) has been implementing programs designed to maximise the probability of discovering globally significant mineral resources. Currently, it has been efficiently developing the Heavy Mineral Sands (HMS) Corridor Projects in the HMS enriched Corridor Sands province of Mozambique. The Company has been conducting reconnaissance Auger drilling on various targeted anomalies.

A recent achievement has been the “exceptional results” (as Chairman Mr Andrew Van Der Zwan) calls them, from the on-going hand auger drilling on the Corridor South project at Zulene anomaly. Not only have the drill results defined another high-grade HMS zone, they have delivered a new high in terms of estimated average THM grade.

Post release of the remarkable results, the Company’s stock (MRQ) ended the day’s trade at $0.006 on 3 June 2020.

Let us deep dive-

Zulene Anomaly Result

Drill results at Zulene have defined a high-grade HMS zone of more than 5 per cent visual THM. Furthermore, they have delivered a new high in terms of estimated average THM grade of 8.7 per cent in hole 20CSHA413. More than 50 per cent of Auger holes (10 of 18) have uncut, average downhole visual estimated grades of more than 3.5 per cent THM and 38 per cent of the holes (7 of 18) end in sample intervals with estimated visual THM grades of more than 5 per cent.

New visual results of the widespaced drilling (holes 20CSHA402-419) has demonstrated more very encouraging high-grade HMS mineralisation-

The best hole, 20CSHA413 is located near the southwest boundary of Nhocoene village. Its outstanding result provides an encouraging trajectory to other potential significant high-grade mineralisation near surface. The third best hole, 20CSHA408, was stopped early due to water being intersected and a dearth of sample return with sand auger equipment was noticed.

Besides these 3 holes, 20CSHA418 delivered 10.5m @ 5.3 per cent visual estimated THM.

Zulene Anomaly Overview

Covering a zone of HMS mineralisation, at more than 4 per cent estimated visual THM, Zulene anomaly has a current footprint of almost 5 km X 1 km. Though mineralisation remains open in all directions, the Limpopo River valley (Valley) restrains it on the west as well as the south sides.

The new zone of HMS mineralisation at the anomaly is almost 3 km south of the Siaia target, from where MRG Metals has recently unveiled drill results having defined a high-grade HMS zone, more than 5% visual THM.

To know about the Siaia milestone, READ HERE- HMS Wins Continue for MRG Metals, Auger Drilling at Siaia Defines New HMS Target

The Company notified that additional follow-up Auger drilling will be needed at the Zulene anomaly to further define mineralisation outside the Nhocoene village boundary (along the flank of the Valley).

Auger Drilling Specifics

To additionally explore revised and selected radiometric and magnetic anomalies, the relatively wide-spaced reconnaissance hand Auger drilling was conducted in the Corridor HMS district.

• 18 shallow auger holes consisting of 179.5m with the collection of 120 primary samples at 1.5m intervals were worked upon.
• The spacing of Auger drill holes was at 500m/1000m stations along drill lines (1000m apart).
• Hole depths range from 1.5m–12m deep (average depth 10m)
• 125 samples (incl. QAQC samples) have been collected from the 18 holes in total
• Auger samples were typically collected at 1.5m intervals downhole (unless drilling difficulties barred this length)
• Each sample interval was panned to estimate a visual percent THM grade
• Drill samples with visual estimated THM% grades ≥3% are split for export
• From Mozambique, they would be sent to a HMS analysis lab where heavy liquid separation along with quantitative percent THM determination would take place
• Duplicate samples are formed and inserted in the field at a frequency of 1 per 25 primary samples
• Standard reference material samples are inserted in the field at a frequency of 1 per 50 primary samples

Bottomline

MRG Metals’ first target at the Corridor Projects, Koko Massava, has had its MRE already identify the capability for development of a multi decade mine. The Company’s continued exploration has well-focused on high-grading potential early mine life tonnage from surface.

With the exceptional Zulene results being an add-on and value of high-grade tonnage at or near surface, possibility of a reduced or nil strip requirement is significant. The Company now has several new zones (including Nhacutse and Poiombo) with this potential identified outside of the Koko Massava deposit.

MRG continues to conduct reconnaissance Auger drilling on several targeted anomalies of the Corridor HMS district.