MRG Metals’ (ASX:MRQ) eventful September quarter sees marked progress at Corridor, Marao projects

Highlights:

• MRG Metals (ASX:MRQ) marked significant progress in the September quarter with its major focus on the Corridor and Marao projects
• The company has completed the engineering scoping study, establishing an exceptionally favourable operating cost structure at the Koko Massava, Nhacutse and Poiombo deposits.
• Koko Massva's pre-feasibility metallurgical test work has highlighted a grade improvement
• As per the company, the Marao project produced excellent analytical results

MRG Metals Limited (ASX:MRQ) has reported an eventful September quarter with major developments seen at its Corridor and Marao projects. 

During the reported period, MRG completed the engineering scoping study, which the company believes demonstrates an exceptionally favourable operating cost structure at the Koko Massava, Nhacutse and Poiombo deposits.

A sample from the Koko Massava deposit also went through pre-feasibility metallurgical test work, which showed an increase in the grade of the Ilmenite product compared to previous sampling data.

It was also confirmed that the material from Koko Massava could be processed easily by using typical mineral sands process methodologies and equipment.

Also, the period saw aircore drilling at three heavy mineral sands (HMS) targets of the Marao project, which delivered high-grade analytical results.

Engineering scoping study at Corridor: exceptionally favourable operating cost structure

In August, IHC Mining completed the engineering scoping study for the Corridor Central (6620L) and Corridor South (6621L) projects targeting the Koko Massava, Nhacutse and Poiombo deposits.

Source: Company update

MRG believes that based on the project's characteristics, the engineering scoping study yielded an outstanding favourable operating cost structure. The following are the key characteristics:

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

The scoping study scenario and its key outputs are as follows:

• Mining inventory stood at 513 million tonnes
• The material processed per year would be 20.1 million tonnes

For the initial three years, sand approaching 6.5% THM grade will be processed; however, by the 15^th year, the sand needs to have greater than 5% THM grade for processing. The CAPEX required would be US$239 million (with a 15% contingency). Other highlights are shown below:

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

Click here to zero in on the recent developments relating to Corridor projects.

Koko Massva’s pre-feasibility metallurgical test work highlights grade improvement

During the quarter, IHC Mining conducted pre-feasibility metallurgical test work on a 6.5-tonne bulk sample from the Koko Massava deposit, which produced the following results:

Source: Company update

It also highlighted an increase in the grade of the Ilmenite product, which went to 48.4% TiO₂ from 46.7% TiO₂ from previous smaller metallurgical samples.

As per the company, the test work also established that the material from Koko Massava could be easily processed using typical mineral sands process methodologies and equipment. MRG is further looking to test the Ilmenite product to 50% TiO₂.

The processing of the ore sample by IHC Mining is shown below via a block flow diagram:

Source: Company update

Other highlights of the result are: heavy mineral content of 5.6% at +2.85 specific gravity. The presence of oversize (+2 mm) material was negligible, and moderate 18% -45µm grain size fines material was present.

Marao Project: excellent analytical results

The company has conducted a reconnaissance 10-aircore hole drilling program at three heavy mineral sands (HMS) targets: Magonde, Maduacua and Mandende.

MRG previously defined these targets at its Marao (6842L) Heavy Mineral Sands licence. As per the company, the drilling delivered excellent analytical results.

Furthermore, Magonde and Mandende targets have established very high-grade targets based on the data from holes 22MUAC003 and 22MUAC008.

The mineral assemblage investigation is currently on track for 14 composite samples taken from representative lithologies of the three targets, following which the company will be planning for the next stage of targeted aircore drilling at Marao.

Also, the company believes Marao has immense potential and can deliver HMS mineral resources of equivalent THM grade and higher VHM % than the Koko Massava, Nhacutse and Poiombo deposits.

During the quarter, MRG executed several activities targeting the Corridor and Marao Projects, producing exciting results. After an eventful September quarter, the company has planned several activities to develop the projects in the current quarter.