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This is why MRG Metals stock was ~10% higher today!

Highlights

  • MRG Metals Limited (ASX:MRQ) has announced positive outcomes of a three-way inter-laboratory QAQC analytical check process of ~5% of the samples from recent drilling programs at Koko Massava, Nhacutse and Poiombo.
  • Good results (MAK vs Geolabs and Diamantina) to very good results (Geolabs vs Diamantina) were achieved on the THM results within the three-way inter laboratory analysis.
  • Additionally, MRG Metals has received the Environmental Management Plans (EMPs) approval for the Marao 6842L and Marruca 6846L licences.

A significant Heavy Minerals Sands (HMS) junior ASX explorer, MRG Metals Limited (ASX:MRQ) has a world-class JORC classified discovery in the bag and is progressively working towards a 100-year mine development. The Company has four high calibre 100%-owned projects with another under application in Mozambique – a world prolific HMS province. It has been targeting early mine life feed across multiple targets with Mineral Resource Estimates (MREs) upcoming within Koko Massava, Nhacutse and Poiombo targets.

On 8 December 2021, the stock of MRG Metals, MRQ, traded up by 9.99% at AUD 0.011, with a trading volume of over 3 million and a market capitalisation of AUD 15.4 million. Positive investing sentiment seemed to have been propelled by two significant updates-

  • Positive 3-way inter-laboratory QAQC check assay study results undertaken on recent aircore drilling samples from Koko Massava, Nhacutse and Poiombo.
  • Grant of Environmental Licences for the Marao 6842L and Marruca 6846L tenements.

3-way inter-laboratory QAQC check assay study results

The inter-laboratory check analysis was undertaken on recent aircore drilling samples from Koko Massava Holes ‘AC691 and ‘AC709), Nhacutse (holes ‘AC717 and AC724) and Poiombo (hole ‘AC729). A total of 5 holes were considered- 199 samples that amounted to 5% of the drilling program. Laboratories used were MAK Analytical (S. Africa), Diamantina and Western Geolabs and in WA.

Key findings-

  • Good results (MAK vs Geolabs and Diamantina) to very good results (Geolabs vs Diamantina) were achieved on the THM results within the three-way inter laboratory analysis.
  • Good correlation was found on internal and inter-laboratory QAQC standards and duplicate samples.
  • Geolabs results are on average 0.36% THM higher than MAK.
  • The Diamantina results are on average 0.24% THM higher than MAK.

3-way inter-lab results for THM

3-way inter-lab results for THM

Source: Company announcement, Dec 2021

Besides, 40 samples from two aircore holes drilled during the six drillhole twin drilling at Koko Massava (hole ‘AC681) and Nhacutse (hole ‘AC685), one hole from each deposit, were analysed by MAK and Western Geolabs. Good correlation was established in the result- the results from the two twin drillholes showed Geolabs on average 0.23% THM to be higher than MAK.

Inter-lab results for THM b/w MAK & Geolabs of twin aircore holes

Inter-lab results for THM b/w MAK & Geolabs of twin aircore holes

Source: Company announcement, Dec 2021

MUST WATCH: Executive Corner- Expert Talks | Mr Andrew Van Der Zwan – Non Executive Chairman of MRG Metals

Environmental Management Plans (EMPs) approval

In addition to the positive outcomes from inter-laboratory check analysis, MRG Metals has received Environmental Licences for the Marao 6842L and Marruca 6846L tenements. This is a critical step in the exploration of these tenements as it allows development from hand auger to “machine driven” exploration (aircore drilling).

Prior to the grant of Environmental Licences, the Company could merely conduct exploration through non-machined exploration tools (hand augur). Notably, this methodology generated three key targets, Magonde, Mandende as well as Maduacua. However, in these targets, drilling was limited to a depth of close to 13.5m.

Auger drilling at Marao is nearly 80% complete. Now, aircore drilling can be conducted to test the targets at depth, which is planned for 2022.

Management commentary

Way forward

The Company has received results from 21 composite samples at Koko Massava high grade infill drilling. These are currently being investigated. The large sample required for the Laboratory Metallurgy bench top study has arrived in Brisbane, and work is proceeding on schedule. Consequently, the Koko Massava MRE is likely to be completed in the coming days. The pit optimisation work will start upon MRE completion and results are expected this year.

In 2022, MRG Metals is expected to conduct aircore drilling at the Marao 6842L liecence, thanks to the recent grant of the Environmental Licence.

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