On 24 April 2019, diversified metal explorer company, MRG Metals Limited (ASX: MRQ) provided an update on the Heavy Mineral Sands Projects in Mozambique.
The company highlighted that Geophysical contractor, Geotech Limited completed the Airborne magnetic and radiometric geophysical survey on 7 April 2019. The survey was completed on time and within budget.
From the initial analysis of the preliminary data sets, a significant anomalous zone was identified in both the magnetic and radiometric data. These zones included the zones that correlate with historic high-grade drill results. Based on the comparative analysis, it was found that the new data had additional anomalies. These data require further levelling and scaling to identify potentially masked, more subtle features within some very large, high-intensity magnetic anomalies. After the process of data levelling and scaling, full technical analysis needs to be completed as soon as possible. These anomalies to be followed up by ground exploration, ranked and then tested using the auger drill program.
At present, sixteen holes are drilled to date which was completed before the Easter break which comprises of 181.5 metres of drilling. The average drilling was of 11.3 metres deep where a total of 130 samples was collected.
The auger drilling, as well as sampling procedures, will be bedded down. Next, the Auger program will be re-focusing on the areas with high-grade historical drill results for the orientation work and also investigate the geophysical survey anomalism. The technical manager will lead validation and compilation of field data. The manager will also work on the process of Government approval as well as start the process of export for initial auger sample batch to Australian laboratory for the separation analysis of heavy liquid.
The field data related to the semi-quantitative auger program will be released after the compilation and validation get completed.
At the Corridor South tenement, the stakeholder engagement is completed with a presentation to the district government council. The company did a follow-up on the Marão (6842L), Marruca (6846L) and Linhuane (7423L) mineral rights application. The company has requested the Ministry of Mineral Resources for the compliance changes. Additional supporting documents were also actioned.
At present, the in-country management is working closely with the legal team in order to execute the outstanding issues.
About Airborne magnetic and radiometric geophysical survey
The process of airborne survey permit started by Geotech Limited in the early March 2019 and the permit was granted on 25 March 2019. The Geotech aircraft was taken to the project area on 27 March 2019 where there were safety and health procedure checks. On 1 April 2019, reconnaissance flights over the survey area followed by calibration of equipment, data production flights started.
In the last six months, the shares of MRQ generated a return of 20%. Further, after the update on the Heavy Mineral Sands Projects, by the end of the trading session on 24 April 2019, the share price of MRQ zoomed up by 50%. The shares of MRQ are trading at A$0.006 on ASX (As at Friday 26 April, AEST: 1:18 PM), trading flat as compared to its previous trading day’s close price. MRQ holds a market capitalization of A$4 million and approximately 667.17 million outstanding shares.