Decoding upcoming developments at MRG Metals

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Decoding upcoming developments at MRG Metals

MRG is a significant HMS explorer
Image source: Company presentation, June 2021

Highlights

  • MRG Metals is developing its Heavy Mineral Sands (HMS) projects in southern Mozambique.
  • The Company is on track to succeed in its Exploration Strategy of discovering potential mine startup HMS deposits, evident from several successful aircore programs across its projects.
  • It is rapidly advancing to deliver three Mineral Resource Estimates across the very high-grade Koko Massava, Nhacutse and Poiombo targets.

MRG Metals Limited (ASX:MRQ) is a junior ASX explorer with four high calibre 100% owned projects (746km2) in the world prolific HMS province of Mozambique. Corridor Central and South Portfolio are MRG’s contiguous tenements containing 13  high priority targets. Another project, Linhuane, is under an application.

MRG Tenements

Copyright © 2021 Kalkine Media, Company tenements (Source: Annual report, October 2021)

Besides, MRG recently applied for an additional HMS exploration license in Mozambique- the new Corridor North (10779L) Exploration Licence Application (ELA) that covers 8,037.49 Ha.

Last year, MRG delivered 1.4 Bt @ 5.2% Total Heavy Mineral (THM) JORC Resource (4% cut-off grade) at its first target, Koko Massava, located in the Corridor Central (6620L) licence. Blessed with a world-class JORC classified discovery, the Company is currently working on a 100-year mine development.

Besides, its exploration discovery costs (to Inferred Resource) are significantly low (one of the best in the industry). So much so, discovery/tonne runs at below AUD 2 cents/tonne.

Recent developments at MRG Metals

During the year ended 30 June 2021, MRG was involved in the exploration and development of heavy mineral sands within Mozambique-

  • A 34-hole infill aircore drilling program at the Koko Massava prospect identified two very high-grade zones based on visual estimation (VIS EST). Within the massive Koko Massava footprint lies significant high-grade mineralisation from the surface, including valuable pockets of very high grade. MRG aims to identify over 100 million tonnes (MT) of prospective early mine life, high-grade feed.
  • MRG completed an aircore program comprising six infill holes at Poiombo. A high-grade mineralised area of ~ 0.84km2 has been confirmed. The results induce an MRE to be undertaken in the current quarter, leading to potential mine development plans.
  • A 16-hole infill/extension aircore program was conducted at Nhacutse, successfully expanding the surface footprint of the Nhacutse very high grade mineralisation to a zone of 4km2. Nhacutse seems to be a high potential mine start-up opportunity. The potential delivery of an MRE is over the target 100 Mt, at THM grades higher than the Koko Massava JORC Resource.
  • During the year, preliminary findings of 3D Leapfrog models were revealed for the Koko Massava deposit, Nhacutse and Poiombo deposits. READ DETAILS HERE: Leapfrog modelling results indicate further Mineral Resource Estimates for MRG Metals
  • MRG’s auger drilling at the Marão (6842L) HMS licence has identified three high grade targets to date- Magonde, Mandende and Maduacua.

MUST-READ: MRG Metals displays flurry of developments in June 2021 quarter

What’s next?

Despite the outbreak of the coronavirus disease (COVID-19), MRG Metals efficiently and successfully conducted a safe full exploration program during the last few months. In the days to come, MRG is likely to progress the Corridor Sands Project from the exploration phase to development phase.

The below representation depicts the pipeline of the Company as it continues to transition from the discovery to development phase in its HMS province.

Activities in store

MRG’s pipeline (Image source: Annual report, October 2021)

The HMS market cycle appears to be on the uptick, and MRG has promising opportunities ahead. The Company continues to identify multiple very high-grade resources to turbocharge economics into the feasibility phase.

RELATED READ: MRG Metals’ (ASX:MRQ) HMS Potential highlighted at Mines and Money Connect Conference  

MRQ was trading at AUD 0.010 early morning on 11 October 2021.

 

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