The metals and mining industry are confident that the Heavy Mineral Sands (HMS) market is experiencing rising demand, only for it to grow in the future.The paint, foundry, aerospace and various chemical industries have been tapping the strong, light weight, temperature-resistant properties of HMS.
Leveraging this global demand, ASX-listed MRG Metals Limited (ASX:MRQ) is currently exploring for HMS in the world-class location of Mozambique via its Corridor Central and Corridor South projects. This Southeast African nation is believed to host the largest HMS titanium feedstock resources globally and has few major world-class mineral sands mines.
MRG Metals has a portfolio of 13 high calibre targets identified on its HMS Projects and has been successful in making a significant discovery of high grade Total Heavy Mineral (THM) over a large area from surface.
The first target, Koko Massava, exceeded MRQ’s highest expectations and the Company anticipates the upcoming MRE to confirm that the lucrative target is a potential standalone economic asset.
To read about developments at Koko Massava, PLEASE READ-Excellent Final batch Aircore Drilling Results at MRG Metals’ Koko Massava
Turning over to more developments, the Company is all set to focus on the next target, Poiombo after the success trajectory of Koko Massava.
Hand Auger Drilling at Poiombo Concludes Successfully
The Reconnaissance hand auger drilling at the Poiombo target was designed to explore the high grade mineralization extent. After 52 auger holes were drilled, the process is finally complete.
The drillholes were spaced at 500m stations along lines 1000m apart. 334 samples were collected at 1.5m intervals downhole, wherein sample interval panned to estimate a visual THM grade. The hole depths lay in between 1.5m–12m depth (average depth of 9.2m).
The Company notified that as at the western end the linear Poiombo target is bounded by the Limpopo River flood plain, the Auger was unable to penetrate the wet surficial black clay. At the east end, Poiombo appears to be constrained by a drainage basin where the shallow auger holes typically contain 1%–3% average downhole visual THM. A deeper drilling (with the Aircore method) will be required to better test the Poiombo target in the east.
Poiombo Hand Auger Drilling Results
The Koko Massava results to date have encouraged MRQ to be extremely targeted in looking for even higher unit-value tonnage at its other targets. The upcoming program at Poiombo is a clear example of this strategy.
The initial visual results of the wide-spaced drilling have been incredibly encouraging and exhibited the near-surface nature of high-grade HMS mineralisation at the Poiombo target-
- Many auger holes have uncut, average downhole visual estimated grades of over 4% THM and 32% of holes end in estimated THM grades of over 4%.
- The most encouraging zone of near-surface HMS mineralisation >3% visual estimated THM, is in the central portion of the Poiombo target. It has a footprint of ~4km X 3km, with Auger hole 19CSHA056, drilled in 2019, at its centre containing a laboratory assay result of 9m @ 6.63% THM
- The best result of 5.8% average visual THM was in hole 20CSHA254, drilled to 12m depth; maximum of 6.7% visual THM in the sample interval 6.0-7.5m; and ended in 5.9% visual THM in the 10.5m-12m interval
- The second-best hole was 20CSHA259 with 4.9% average visual THM over 12m, with an end-of-hole sample interval from 10.5m-12m of 5.8% visual THM.
- A total of 28 of the 52 holes have >3.0% average visual estimated THM, from hole depths ranging from 4.5m–12m.
Reconnaissance Aircore Drill Plan at Poiombo
MRQ is all set to begin a maiden Aircore drill programme on the Corridor South project in mid to late March (once the field preparation is complete and the rig arrives on site).
Currently, an initial 10 Aircore holes are planned, to begin around the best Auger hole 19CSHA056. The drilling will then progress east and west.
Due to the strandline style target being explored and the potential for strandlines to be relatively narrow, several reconnaissance Aircore holes in the central zone will be drilled at 250m stations along the drill lines. The drilling will be centred around either laboratory or visual estimated 5% THM auger holes, or coincident with high intensity magnetic anomalism.
- Drill lines for this maiden Aircore programme will be at least 1km apart and up to 3km apart in places
- As the Poiombo magnetic anomaly is interpreted to be relatively close to the surface, the hole depths will average 30m–36m
- In cases where there is potential encouragement from high grade THM intersected near surface, some holes will penetrate to between 50m–75m to explore the opportunity for deeper HMS mineralisation
- The hole planned in the eastern extension of the Poiombo target will test continuation of the potential mineralized footprint under shallow, lower-grade, cover material.
What to Anticipate in the Near Future?
The Company notified that the first batch of samples from the 2020 hand auger drilling, which includes samples from Koko Massava as well as Poiombo, is still being permitted in Mozambique, and is expected to be ready for export by mid-March 2020.
Besides this, at Poiombo, MRQ will cater to the linear magnetic anomalism that continues to the east post of the initial aircore drilling (given its lower-grade HMS cover).
MRQ looks forward to focus on other targets within Corridor Central, Corridor South as well as Linhuane and other projects yet to be granted, which will see its already substantive resource get bigger and better.
Soared Stock Performance
Welcoming the Poiombo update with optimism, investors showered their enthusiasm over MRQ on the ASX. The stock was up by 14.28 per cent by market close and quoted $0.008 on 4 March 2020 whereas on the subsequent day it is up by 12.5%. In the last one year, it has delivered returns of 60%.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.