THE BOURSE WHISPERER: Mustang Resources (ASX: MUS) has increased the ruby inventory at the company’s Montepuez project in Mozambique to 147,052 carats.
Mustang Resources said the increase in the ruby inventory is due to previously-reported water shortages having been overcome, enabling the ramp up of the upgraded processing plant to reach its full target rate.
This has resulted in the plant delivering consistent daily recoveries of high-quality rubies totalling 500 to 760cts per day, putting Mustang on track to reach its target of 200,000cts in time for its planned auction in October 2017.
Mustang said its inaugural rough ruby auction/tender has been scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius.
The company anticipates the auction will define the value range for rubies within each of its grading categories and be a key indicator of the long-term commercial viability of the Montepuez ruby project.
The auction is expected to produce considerable cashflow to assist in funding the project’s future working capital requirements and potential expansion plans.
“All project work streams were going well and are on track for the auction,” Mustang Resources managing director Christiaan Jordaan said in the company’s announcement to the Australian Securities Exchange.
“We are highly encouraged by the positive responses and support received from customers to date.
“Mustang’s management team is confident of delivering a strong inaugural auction and continuing to advance towards our goal of establishing the company as a globally significant ruby supplier.
“We are very pleased with the current performance of our processing plant after solving the remaining water challenges and now achieving good daily recoveries of high quality rubies.”