MRG Metals to complete Koko Massava Mineral Resource Estimate- what should you know?

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MRG Metals to complete Koko Massava Mineral Resource Estimate- what should you know?

MRG is a significant HMS developer and explorer
Image source: Investor Presentation, Oct 2021

Highlights

  • MRG Metals (ASX:MRQ) aims to progress the Corridor Sands Project from exploration towards mine development.
  • Completion of the Mineral Resource Estimate (MRE) at Koko Massava is expected next week.
  • The Company has prepared for the commissioning of a Preliminary Economic Assessment to commence in January.

MRG Metals Limited (ASX:MRQ) continues to make significant strides across its Heavy Mineral Sands projects in southern Mozambique. It is targeting early mine life feed across multiple targets with MRE’s upcoming within Koko Massava, at Nhacutse and Poiombo targets.

Recently, MRG Metals announced plans to progress its Corridor Sands Project from exploration into mine development. To facilitate this, the Company has appointed IHC Mining to conduct a work program.

MUST READ: MRG Metals unveils progressive September quarterly activity report

The outlook for HMS is positive & MRG has advantage here

HMS at MRG Metals; Image source: Investor Presentation, Oct 2021

While developments continue across projects, MRG has notified that-

  • The completion of the MRE at Koko Massava is expected next week.
  • The Conceptualised Pit Optimisation completion is broadly on target in December.
  • MRG has prepared for the commissioning of a Preliminary Economic Assessment to begin in January. This will be done following the results of the MRE and Pit optimisation work.

MRE at Koko Massava

Last year, MRG Metals revealed the Koko Massava MRE of 1.423 Mt @ 5.2% THM. Infill drilling has identified very high grade (>6%) from surface. The ongoing exploration programs are levering off skills and efficiencies developed at Koko Massava.

Notably, Koko Massava alone has the potential to become a mine start-up opportunity for MRG, as suggested by leapfrog modelling of assay and visually estimated grade from previous MRE plus recent infill drilling-

  • A potential high grade zone of 292 million cubic metres at a cut-off grade of 5% THM.
  • By comparison, the cut-off grade applying to the MRE last year was 4%

It should be noted that three high grade near surface zones have been identified from recent infill and extension drilling, that are expected to result in an MRE as “Indicated Resource”. Koko Massava MRE aims to classify >150 MT of near-surface high grade zones into Indicated Resource.

Koko Massava has potential to be the foundation of a multi-decade mine operation!

 Project areas

MRG Projects, Image source: Investor Presentation, Oct 2021

Way forward

Prospects delivering the best 100-200MT MRE are likely to feed into scoping study in early 2022, with a potential Feasibility Study later in 2022. Events that remain in pipeline are-

  • Updated Mineral Resource Estimate (MRE) at Koko Massava utilising recent infill drilling and expansion drilling results.
  • Pit optimisation / mine planning studies for Koko Massava.
  • Maiden MRE for Nhacutsce and Poiombo.
  • Re-run pit optimisation / mine planning for all 3 MRE’s to achieve best scenario.
  • Preliminary Economic Assessment (PEA) comprising a Scoping Study and Financial Modelling, including PreFeasibility Stage Metallurgical Testwork can be expected Upon acceptable outcomes of the above work.

Besides, MRG Metals has ongoing exploration plans at Corridor Sands and other properties yet to be explored.

On 22 November 2021, MRQ quoted AUD 0.011 on the ASX.

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