Understanding MRG Metals’ stance at world-prolific province of Mozambique - Kalkine Media

Highlights

• MRG Metals Limited (ASX:MRQ) has four high-calibre 100%-owned projects and two further projects under application in Mozambique- a world prolific HMS province
• To date, three significant Mineral Resource Estimates have been released at MRG Metals’ Corridor Projects.
• In May 2022, the Company applied for three new rare earth element (REE) and uranium exploration licences in Mozambique.

Junior ASX explorer MRG Metals Limited (ASX:MRQ) continues to gain ground across its Heavy Mineral Sands (HMS) projects in southern Mozambique. With a world-class JORC classified discovery in the bag, the Company is efficiently working towards a 100-year mine development. Advancing developments at its Mozambique-based projects, MRG Metals continues to forge ahead with its forward-looking strategy to tap the growing rare earth elements and uranium markets.

MRG Metals has four high-calibre 100%-owned projects (746km²) and two further projects under application in Mozambique – a world prolific HMS province. Corridor Central and South Portfolio are two contiguous tenements containing 13 high priority targets.

MRG Metals’ tenements

Source- MRG’s March 2022 Quarterly Activity Report

 Mozambique is a fantastic investment destination and MRG Metals has already achieved success at across its portfolio of HMS projects based in the country. It has an excellent local team involved in the continued development focus of the HMS resources at the Corridor project.

Recent developments at MRG Metals

To date, three significant Mineral Resource Estimates have been released at the Corridor Projects . The Company has commissioned IHC Mining for an Engineering Scoping Study and Preliminary Economic Assessment (PEA) for its Corridor Projects. Besides, TZ Minerals International is currently undertaking a market study to better understand the economic potential of the different product streams of the Corridor Central and Corridor South resources.

A 2,000m aircore drilling program is underway at the Corridor Central and Corridor South tenements to test 11 targets that demonstrate high valuable heavy mineral (VHM) content corresponding with high total heavy mineral (THM) content.

The explorer is also executing developments at Marao and Marruca projects. Drilling continues to test depth continuity of the three targets (Magonde, Mandende and Maduacua) which were identified by grid auger drilling at Marao.

MRG Metals’ areas of interest

The Company’s first area of interest is HMS. The market outlook for HMS has been improving, thanks to increase in Titanium Oxide and Titanium metal demand. Besides, titanomagnetite has potential value in high iron ore price environment. Additionally, an improvement in Ilmenite concentrate is a key driver for MRG Metals, as the Company is an Ilmenite player with significant Zircon and Rutile as well as potential iron ore credits. MRG Metals believes that Ilmenite’s price will increase with TiO₂ demand.

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Coming to MRG Metals’ most recent area of interest- Rare Earth Elements (REEs) and Uranium (U).

In May 2022, the Company submitted three Exploration Licence Applications (ELAs) over a high-potential Rare Earth Elements (REEs) and Uranium (U) project in Mozambique. The ELAs are situated around 780 km North-East of the existing HMS projects at Corridor Sands and 230 km North-Northeast of the port city of Beira.

MRG Metals Chairman Mr Andrew Van Der Zwan believes that the new ELAs diversify the Company’s portfolio, providing exposure to the both the growing rare earth elements and uranium markets.

The ELAs are under review by government departments as of now. The Company is ready to begin field exploration once the applications are granted. Notably, these REE and Uranium projects will both grow and diversify the commodity spread of MRG Metals’ exploration portfolio in Mozambique.

MUST READ- Sneak peek into MRG Metals’ (ASX:MRQ) productive March 2022 quarter

Opportunities for investors

MRG is continuing to build its exploration portfolio, with aspirations in HMS and other strategic commodities. The evolution of its activities in Mozambique provides multiple opportunities for investors-

• The Company has already identified a significant resource and is currently determining the economic potential via a scoping study.
• MRG is continuing exploration activities within its HMS portfolio, which may provide an upgrade to the existing HMS resource (and hence add to the economics).
• The excitement of new green field exploration targeting highly desired minerals in the rare earth and uranium space might reap further benefits.

Conclusively, MRG Metals has a slew of exploration plans in progress at Corridor Sands and other properties which are yet to be explored. Several additional exploration opportunities are available in Mozambique which can allow the Company to run parallel strategy of mine approval and development while continuing to enhance shareholder value.