MRG Metals To Benefit From Possible “Exciting Infrastructure Upgrade” For Mozambique

  • Aug 07, 2020 AEST
  • Team Kalkine
MRG Metals To Benefit From Possible “Exciting Infrastructure Upgrade” For Mozambique

Summary

  • Mozambique in South Africa is recognised as the largest host to heavy mineral sands (HMS) titanium feedstock resources, globally.
  • Tapping a transformational investment opportunity in which low cost exploration expenditure may generate significant growth, MRG Metals is currently developing the Corridor Projects, exploring for economic deposits of HMS.
  • Significant discovery of high grade Total Heavy Mineral (THM) over a large area from the surface has been made across the Company’s portfolio of 13 high calibre targets identified on Corridor Central & Corridor South projects where developments continue at an impressive rate
  • Currently, MRG Metals is in discussion with a Moçambique STT Sociedade Anónima for a probable and hugely exciting infrastructure upgrade for Mozambique

MRG Metals Limited (ASX:MRQ) is a cost effective, technically driven exploration company exploring for economic deposits of HMS in the southern part of Mozambique. The Company has been implementing programs designed to maximise the probability of discovering globally significant mineral resources. It has achieved a lot in just over 12 months of exploration, with ongoing district scale exploration on 13 high calibre targets on Corridor Central & Corridor South projects demonstrating continuous and impressive developments.

GOOD READ: In Discussion with MRG Metals: Transformational Investment Opportunity in HMS

Recently the Company provided the market with its quarterly update for the quarter ending 30 June 2020, wherein activities were focussed within the Corridor Central (6620L) and Corridor South (6621L) tenements.

On 6 August 2020, the Company advised that it is continuing to progress discussions with Moçambique STT Sociedade Anónima (STT) pertaining to a hugely exciting infrastructure upgrade for the country of Mozambique.

MRG & STT Conversation

STT is the private enterprise behind Mozambique’s proposed multibillion-dollar Chongoene Development Corridor Project (CDC). In the current stage of this Project, it is proposed that the railway component of CDC development will run through MRG Metals’ Corridor Central and Corridor South tenements.

Reportedly, STT has invited the Company to provide information about the impact that the CDC location would have on the Company’s projects.

CDC Development Overview

The CDC development comprises a 150 Mtpa multipurpose deep-water seaport to be located in the town of Chongoene. The Chongoene port will be linked by a railway to the existing Maputo-Zimbabwe line.

It is projected that Phase 1 of the CDC Development may start in 2023 at an investment cost of close to USD 3.78 billion (of which USD 2.83 billion is likely to be invested directly into Mozambique). This Phase will consist of construction of the below-

  • A 2-berth jetty at Chongoene port with capacity for 10 Mtpa
  • Railway line (221km) from Chongoene to Macaratane
  • Improvements to the existing 310km CFM Line from Macaratane the Chicualacuala, located on Mozambique’s border with Zimbabwe. This would provide a link into the 886 km National Railways of Zimbabwe line (which links directly into Botswana, South Africa, Zambia rail networks). This further ensures rail link from Chongoene to 6 countries (including the Democratic Republic of Congo and Angola, in the Southern Africa Development Community).

CDC Significance for MRG Metals

Notably, CDC development’s 150 Mtpa multipurpose deep-water seaport would be close to 40 km south of Koko Massava Prospect (MRG Metals’ first target) and merely 10 km from the southern boundary of the Company’s Corridor South Tenement. Besides, the Chongoene port will be linked by a railway to the existing Maputo-Zimbabwe line, and this proposed track line will run through/ be adjacent to MRG Metals’ Corridor Central and Corridor South projects.

Subsequently, MRG Metals’ believes that close proximity of Chongoene deep-water seaport project coupled with the proposed Mineral Processing Zone and planned extension of a natural gas pipeline for energy production for the Park & Port might-

  • Provide a substantial economic boost to MRG Metals’ potential mining operations
  • Facilitate a trucking option and rail for export of MRG HMS concentrate

Chongoene Port & Rail Link (Source: MRQ’s Report)

Chongoene Port & Rail Link (Source: MRQ’s Report)

It will be interesting to gauge the unfolding of this likely major infrastructure boost in Mozambique and its contribution towards MRG Metals’ well-paced developments at the Corridor Projects. Meanwhile, it should also be noted that the Company is open to potential interest from established industry players with financial capacity and experience to partner with and take its discoveries to the production phase.

MRQ quoted $ 0.007 on 6 July 2020.

ALSO READ: MRG Metals Defies Market Sell-off on ASX, Zooms ~14% on the Back of High-Quality Mineral Assemblage Results at Corridor Projects

(Note: All currency in AUD unless otherwise specified)

 


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