MRG Metals’ Koko Massava’s HMS Footprint to Expand Beyond 20 km², Stock Soars Over 40%

MRG Metals Limited (ASX: MRQ) is an explorer of Heavy Mineral Sands (HMS), with its current focus on the Corridor Projects Heavy Mineral Sands, Mozambique, a highly prospective Project acquired in FY19. The Company has relinquished all its Australian projects to concentrate on the Mozambique HMS project, a step which depicts the Project’s significance.

The Koko Massava Target Progresses

The Koko Massava target (part of the HMS Corridor Projects) was generated from wide spaced historic drilling and confirmed by excellent Auger drilling results by MRG Metals. The Aircore drilling at the target began on 25 September 2019, and the planned 2250 metre program was scheduled to progress through to November.

On 15 November 2019, the Company notified that the Phase 1 Aircore drilling (undertaken by Bamboo Rock Drilling Limited) of wide spaced holes at 500m x 1000m had completed. A total of 48 aircore holes had been completed comprising 2439m of drilling with holes varying in depth from 24m–75m with an average depth of 50.8.

The best hole completed was 19CCAC143, drilled to 51m depth, which contains 51m @ 6.4% estimated visual THM from surface including 33m @ 7.6% estimated visTHM (18-51m). Maximum individual sample intervals range from 2.9% to 13.0% estimated visual total heavy mineral.

Phase 1 Aircore drilling has defined a 20km² footprint of high grade heavy mineral sands.

On 21 November 2019, MRQ reported further high-grade assay results from Auger samples, which confirm that the drilling underpins an expansion of the project’s high-grade footprint beyond the 20km² at Koko Massava. Mineralisation is open in all directions, as verified by the results, and this high-grade footprint will likely expand further, underpinning the substantial potential of large tonnage, high-grade HMS mineralisation discovery.

Recent Auger Assay Results

Overall, the laboratory results show that 31 of the 34 holes have attained an uncut average downhole grade of more than 3% total heavy mineral, with 7 of the 34 holes having an uncut average downhole grade of over 5% THM. There are 10 holes that end in more than or equal to 5% THM and 5 of the holes were collared at surface with grade more than or equal to 5% THM.

The above result is for a batch of 246 samples (incl. QAQC samples) from a total of 34 holes. The analysis of the field visual estimates of THM percent relative to the laboratory data shows great correlation with an average absolute difference of merely 2.1%. The field procedures implemented by MRQ seem to be working well, as the range in the differential between the visual THM percent estimate and the laboratory THM percent result is between 0.0% and 4.2%.

This is the third batch of Auger samples that have been analysed at the laboratory (refer Company announcements of 19 August 2019 and 9 October 2019 for the previous two).

All three laboratory assay results on Auger samples have demonstrated that the previous visual estimates have been understated. The Company looks forward to the laboratory assay results on the recent Aircore samples that showed excellent visual estimated results.

Auger Sample Laboratory Results

The auger drilling was part of a reconnaissance programme of broad-spaced holes at 500m stations on traverses 1000m apart. Further it is designed to test extensions of the Koko Massava footprint.

The lab results, discussed below, validate the potential for discovery of significant HMS mineralisation. Further validating the visual estimated grades for total heavy mineral reported for aircore drilling within the Koko Massava target area.

Sent to Western GeoLabs in Perth for heavy liquid separation analysis, the auger samples were primarily oven dried and disaggregated (if required by hand), weighed and then split to ~100g sub-samples, which were wetted to ensure further breakdown of any clay aggregates.

• The sub-samples are then de-slimed at 45µm to measure Slime percent and screened at +1mm to remove and measure Oversize percent.
• Post this, they were subjected to heavy liquid separation (HLS) with tetrabromoethane (TBE) at specific gravity of 2.95 for 45 minutes with several stirs of the liquid to ensure adequate heavy mineral ‘drop’.
• The best hole returned within this new laboratory batch, 19CSHA074, collared at surface in 5.40% THM (0-1.5m) and ended in 6.05% THM (9.0-10.5m) with a maximum of 6.68% THM. It comprises an uncut downhole average of 6.15% THM over 10.5m from surface. Slime values related to hole 19CSHA074 are moderate, with a range of 6.99%-19.04% and an average of 12.02%.
• Auger holes 19CCHA072 and 19CCHA073 achieved over 5% THM uncut downhole average grades, from surface to 10.5m, indicating HMS mineralisation at this point is at least 1000m wide.
• In terms of overall Slime characteristics within the laboratory batch, 31 of 237 primary samples contained Slime values >20%, the range being 2.96% to 36.79%, with overall average of 13.47%, indicating that the host sand will be amenable to typical dry mining methods and standard gravitational HMS pre-concentration.
• The Oversize fraction characteristics show a range from 0.24% to 3.84%, with an average of 1.01%.

By the end of November 2019, Lab results for the samples of first Aircore drill are anticipated.

Looking at the results from Auger and Aircore drilling, it is evident that MRQ has been making substantial progress at the Koko Massava target, with time, as it continues the drilling process. The total heavy mineral (THM) grades have noticeably improved, demonstrating the robust nature of mineralisation. This is integral to the overall development of the HMS Corridor Projects and could be a huge driver to uplift the Company’s already well-established overall performance in its operations and in the share market.

With further assays still pending, better results are likely to follow in the near future.

MRQ Confident on HMS Corridor Projects Footprint to Exceed 20km²

The Company recently intimated that the infill drilling is advancing well and is expected to drive the confirmed continuity of the high grade throughout the large footprint. The Project remains open in all directions and is on the path to become one of Mozambique’s very large and high-grade HMS deposits.

Share Price Information

Post the outcome of the recent and solid assay results, MRQ stock soared by 42.857% on 21 November 2019. The stock is currently trading at $0.010 (AEST 02:22 pm), on the ASX on 22 November 2019, with a market cap of ~9 million and ~892 million shares outstanding. The year to date return of the stock is 150% and it has generated 100% in the last six months.

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