Transcription of Finance News Network Interview with Mustang Resources Limited (ASX:MUS) Managing Director, Christiaan Jordaan Carolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from Mustang Resources Limited
(ASX:MUS) is Managing Director, Christiaan Jordaan. Christiaan, welcome to FNN.
Christiaan Jordaan: Thanks for having me Carolyn.
Carolyn Herbert: Could you start by giving us the latest update on your Balama graphite project in Mozambique?
Christiaan Jordaan: We recently announced our results from samples that we analysed, taken from our November 2015 drill program, which are very encouraging. Very positive results received from that. We had grades of up to 22 per cent TGC and very big intervals, graphite intervals, shallow from surface. Some of the samples returned 18 per cent in a 74-metre graphite interval, so it’s very encouraging. Together with that, we’ve also paired that up with some work we’ve done in 2015. Early in the year that showed high percentages of flake graphite, large flake graphite, so quite pleased with that.
Carolyn Herbert: What are the next steps in the exploration program?
Christiaan Jordaan: So next up for us is to analyse all those results, there’s still a few results pending from the labs. After that we’ll pick the most prospective area and we’ll drill that area to a resource, inferred and indicated resource. We’re targeting 50 to 100 million tonnes of shallow graphite, high grade and large flake size is what we’re looking to optimise it for.
Carolyn Herbert: Now to your ruby project, Mustang’s recently acquired three highly prospective ruby assets. Where are you at with this?
Christiaan Jordaan: With the company that we agreed to acquire, they completed some initial work in September last year, where they identified prospective geology, similar to the adjacent Gemfields ruby deposit. We followed that up recently with some work earlier this month, which showed that the geology is definitely very prospective of our artisanalson the licensed area. We’ve identified a 5.3 kilometre long strike of a structural lineament that we have seen some very good correlations, with ruby mineralisation. So that identified target areas for us and we’ll now be proceeding with the next phase of the program.
Carolyn Herbert: What’s planned for the next six months, and when do you anticipate going into production?
Christiaan Jordaan: For the next six months, we’ll focus on staking it one step at a time. First step will be a trenching program, over the identified targets that we now have a very clear idea of. Then we’ll hone in a little bit more and identify the targets for the bulk sample. So the bulk sample is essentially when we go into production, it’s a small-scale mining, processing about 1000 tonnes per day. That will give us a very good indication of the geology; it’ll also show us exactly what quality of rubies and its distribution of qualities. And parcels sold from that bulk sample, will give us indication of differing prices for the qualities that we take out.
Carolyn Herbert: Now to your appointment Christiaan. Can you tell us a little bit about your experience and what attracted you to the company?
Christiaan Jordaan: I originally have a degree in commercial law; I had a career in financial services in South Africa, up until 2010. I then co-founded Regius Resources Group, which is one of the largest shareholders in Mustang. It’s also the vendor of the assets in Mozambique. And through that, my role previously as a CEO of that company, I gained a lot of experience in Mozambique in negotiating the joint ventures of local partners, in interactions with government in managing exploration programs. And I’m very excited about the opportunity to lead Mustang as a new MD, as I think the company has a lot of prospects as a near-term producer, in gemstones. And also in developing cheaply, our graphite project to a resource level.
Carolyn Herbert: Finally Christiaan, where would you like to see the company by the end of the year?
Christiaan Jordaan: So by the end of the year, I believe we would like to be in a position where we’re producing revenue from the gemstones that we recover, or anticipate to recover, with the bulk sample. And I’d also like to have a resource in place for our graphite projects. I believe those goals are realistic, given the quality of our assets and the fact that we have a very good and strong management team, in Mozambique as well.
Carolyn Herbert: Christiaan Jordaan, thanks for the update on Mustang Resources.
Christiaan Jordaan: Thank you Carolyn.
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