- MRG Metals Limited (ASX:MRQ) has announced results of updated Joint Ore Reserve Committee (JORC) Mineral Resource estimates (MRE) for its Nhacutse and Poiombo deposits within Corridor South 6620 L licence.
- The new comprehensive study has delivered a combined Indicated and Inferred Mineral Resource of 860 Mt @ 4.9% THM at the two sister deposits, which includes high-grade zones of 257 Mt @ 6.0% THM.
- The MRE has displayed significantly better new mineralogy data and further confirms the potential of MRG Metals’ Corridor Sands Projects in Mozambique.
- MRG Metals will run further metallurgical analysis on the HMS concentrate at Nhacuste and Poiombo.
Shares of Heavy Mineral Sands (HMS) explorer MRG Metals Limited (ASX:MRQ) shot up by 10% intraday on 8 April 2022, on back of the updated Joint Ore Reserve Committee (JORC) Mineral Resource estimates (MRE) for its Nhacutse and Poiombo deposits within Corridor South 6620 L licence. The company expects a major re-rating if the projects continue to succeed through to Scoping Study and Preliminary. MRQ quoted AU$0.01 at market close.
The Company has four high-calibre 100% owned projects (746km2) along with a project under application in Mozambique, a prolific HMS province. Corridor Central and South Portfolio are two contiguous tenements containing 13 high priority targets.
MRG Projects, Source- Company announcement, April 2022
Within Corridor South, the Nhacutse and Poiombo deposits sit adjacent, ~4 km apart. There is a similar distance between the Nhacutse and Koko Massava deposit to the northwest. All three deposits are in close economic radius and ~40 km from the proposed port at Chongoene, an infrastructure boon to Mozambique.
Updated MREs for Nhacutse & Poiombo
The updated MREs were undertaken by IHC Mining in Perth, Australia. They are based on a recently completed comprehensive mineralogical study. This study returned significantly better results than the historical mineralogy data utilised in the maiden Nhacutse and Poiombo estimate. Besides, a new, comprehensive mineralogical study involving 27 brand new mineral assemblage composites and based on interpreted lithologies was also recently completed.
Results from the mineralogical studies has helped in the preparation of an updated MRE at a 4% THM cut-off grade (COG) for the deposits.
Global MRE for combined Nhacutse & Poiombo deposit
The new comprehensive study has delivered a combined Indicated and Inferred Mineral Resource of 860 Mt @ 4.9% THM at the two sister deposits, which notably include high-grade zones of 257 Mt @ 6.0% THM, a highly encouraging return for MRG Metals.
At a cut-off grade of 4% THM-
- The total Mineral Resource of 860 Mt @ 4.9% THM, with 20% Slimes, contains 42 Mt of THM with an assemblage of 43% ilmenite, 27% titano-magnetite, 1% rutile and 1% zircon.
- Indicated Mineral Resource of 524 Mt @ 5.0% THM and 22% Slimes contains 26 Mt of THM with an assemblage of 44% ilmenite, 27% titano-magnetite, 1% rutile and 1% zircon.
- Inferred Mineral Resource of 337 Mt @ 4.7% THM and 17% Slimes contains 16 Mt of THM with an assemblage of 41% ilmenite, 27% titano-magnetite, 1% rutile and 1% zircon.
©2022 Kalkine Media®
Nhacutse & Poiombo High-Grade Zone MRE
The updated MRE for the higher THM resource material, incorporating the new comprehensive mineralogical data, was done at a 5% THM cut-off for the Nhacutse and Poiombo deposits.
At a cut-off grade of 5% THM-
- The High-Grade Zone MREs for the combined Nhacutse and Poiombo deposits comprise a total Mineral Resource of 257 Mt @ 6.0% THM, with 21% Slimes, containing 15 Mt of THM with an assemblage of 43% ilmenite, 27% titanomagnetite, 1% rutile and 1% zircon.
- Indicated Mineral Resource of 186 Mt @ 5.9% THM and 22% Slimes containing 11 Mt of THM with an assemblage of 43% ilmenite, 27% titano-magnetite, 1% rutile and 1% zircon.
- Inferred Mineral Resource of 71 Mt @ 6.2% THM and 18% Slimes containing 4 Mt of THM with an assemblage of 41% ilmenite, 27% titano-magnetite, 1% rutile and 1% zircon.
©2022 Kalkine Media®
New exploration target
The MRE at Nhacutse and Poiombo deposits have delivered an Exploration Target in the range of 50 Mt and 500 Mt @ between 4.5% and 5.4% THM at cut-off grades of 3% and 5% THM. It is predominantly located within the boundaries of the Bungane, Nhacutse and Poiombo villages.
Significantly better new mineralogy data
The new mineralogy data, specifically the VHM% (Ilmenite + Altered Ilmenite + Rutile + Zircon), is much better at Nhacutse (46% VHM) and Poiombo (43% VHM), consistent in both global and high grade Mineral Resource, than that reported for Koko Massava (40 % VHM for global and 41% VHM for high grade Mineral Resource.
Besides, the increase in the valuable mineral content of the HMC is noticeable in the significant increase in the ilmenite content of the HMC between the historical vs new mineralogical data for the Zone 2 lithological interval.
The VHM data, including the data from individual minerals in the VHM assemblage, affirmed data from previous mineralogical work with an increase in the VHM component of the HMC from west to east within the red/red-brown aeolian sand (from average 45.8% VHM in the west to 47.5% VHM in the east of Nhacutse). The change is particularly clear in the increase in total ilmenite %.
Further, the data showed the VHM%, especially at Nhacutse, is better in the closer to surface red/redbrown sand (Z1 and Z2 composites) with an average of 46.9% VHM from these units. The Middle Zone Z2 composite, where the majority of the Nhacutse and Poiombo resources are situated, has the highest VHM% in general, with an average for Nhacutse at 48.2% and Poiombo at 45.2% VHM. The lower composite had an average of 42.3% VHM at Nhacutse.
Significance of updated Mineral Resource result
The updated MREs are a significant improvement on the maiden estimates which were delivered using historical data.
Combined with the significantly better new mineralogy data from Nhacutse and Poiombo, the updated Mineral Resource result demonstrates exploration success for MRG Metals through the discovery of at-surface, higher in-situ value per tonne deposits than its maiden MRE and both of the Koko Massava deposit MREs.
As per Chairman Mr Andrew Van Der Zwan, results at Nhacutse and Poiombo will have a significant impact on the Scoping Study with a likely impact on mine pit optimization, plant location and most significantly early mine life cashflow.
In Q3, MRG Metals plans to run further metallurgical analysis on the HMS concentrate at Nhacuste and Poiombo to ensure that the likely uplift in Ilmenite concentrate value is reflected, if the Company gets to Feasibility study later in the year.
All in all, the estimates further confirm the potential of the Corridor Sands Projects. The significantly better new mineralogy data accumulated to deliver these excellent results is likely to increase the Company’s confidence in the Nhacutse and Poiombo deposits, as it paves it way towards the exploration program at Corridor Sands.