MRG Metals (ASX:MRQ) confirms a significant VHM target nearby Nhacutse deposit

Highlights:

• Recent aircore drilling by MRG Metals Limited has yielded high mineralogy and high-grade assay results, confirming a new target, ‘Cihari’, which is situated nearby to the northeast of the Nhacutse deposit within Corridor South (11137 C)
• The Cihari discovery is in line with the Company’s goal to enhance the economics of the Preliminary Economic Assessment (PEA) (Net Present Value AU$413 million)
• Cihari sits next to the red sand–white sand mineralogical boundary in the red sand domain
• MRG believes the Cihari target has the potential to deliver substantial tonnage with its higher in-ground value per tonne in comparison with Koko Massava, Nhacutse, and Poiombo owing to the >15% higher VHM
• Cihari is open to expansion in all directions, says the Company

ASX-listed Heavy Mineral Sands (HMS) player MRG Metals Limited (ASX:MRQ) has identified a new highly Valuable Heavy Minerals (VHM) ‘Cihari’ target, based on the high mineralogy and high-grade assay results of five aircore drill holes. The results highlighted the new target's significant VHM value (58.1% VHM) as well as a high value of titanomagnetite (21.6%).

As per the Company, the discovery of the Cihari target will contribute to its goal of improving the economics of the Preliminary Economic Assessment (Net Present Value of AU$413 million).

Source: © 2022 Kalkine Media®, data source: Company update, 16 November 2022

Aircore drilling results corroborated with historical reconnaissance aircore and auger drill hole grade

The new aircore drilling took place northeast of the Nhacutse deposit and comprised five aircore drill holes (22CCAC790 – 22CCAC794).

The laboratory results corroborated high-grade laboratory Total Heavy Mineral (THM) grades from two historical reconnaissance aircore drillholes and one auger drillhole, thus establishing a ~ 1.3km² Cihari target as a significant VHM target.

The Cihari target is located northeast of the Company’s Nhacutse deposit in Corridor South (11137 C). The target is open to expansion along all directions, says the Company.

Source: Company update dated 16 November 2022

The data from the two historical aircore drill holes returned >4% THM laboratory results. When combined with the new results of Holes 22CCAC790 and 22CCAC794 (both >4%THM over 36.0m from the surface), ~1 km² area of >4%THM within the Cihari target has been indicated.

Aircore drilling delivers superior assay results

Upon performing QEMSCAN-based mineralogy analysis of composited samples from all five aircore drillholes (22CCAC790–22CCAC794), high VHM results were returned, including:

Source: © 2022 Kalkine Media®, data source: Company update, 16 November 2022

These drill holes also yielded high-grade assay results from surface, which include:

• Hole 22CCAC790 - A 36-meter interval running from surface @ 4.20 % THM.
• Hole 22CCAC794 - A 36-meter interval running from surface @ 4.26 % THM.

In essence, the Company believes that the Cihari target has the potential to yield considerable tonnage at a higher in-ground value per tonne in comparison with Koko Massava, Nhacutse, and Poiombo owing to the >15% higher VHM.

Click here to know more about Corridor South’s drilling program and other VHM targets.