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Mustang Resources (ASX: MUS)

Mustang Resources (ASX:MUS) is already extracting commercially viable rubies in the start-up stage at the Montepuez ruby project in Mozambique.

A total of 460.43 carats were recovered in the initial bulk sampling, and the coming weeks should see volumes pick up and marginal costs dropping.

The rubies are logically expected to be larger and of high grade as MUS digs deeper, and that is what it is doing right now…

Neighbour company Gemfields held six rough ruby auctions in 2014 and 2015 that saw values range between US$317 and US$688 per carat for medium to high quality rubies respectively, generating a total of USD$195.1M in revenues from their auctions to date.

Gemfields is currently capped at A$433 million.

Should MUS deliver even a fraction of those returns the current market cap of $9M would likely multiply.

In addition to the Montepuez ruby project, MUS is currently diamond drilling at its Balama graphite project which sits along strike from Metals of Africa (ASX:MTA) and Syrah Resources (ASX:SYR), market cap $960M.

Seven diamond drill holes are being carried out in areas showing high grades as identified by previous RC drilling at Balama.

It seems the market has not really valued MUS’ graphite project, given the results of its neighbours, this could change quickly as MUS firms up its JORC resource.

The information on this page should not be the only trigger for your investment decision. Click on the links below for a more in-depth and informed examination of the company. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

With $1.68M cash on hand at the end of the September quarter, MUS is fast-tracking both its Montepuez Ruby Project and Balama Graphite Project.

 

Latest Article

460 Carats of Rubies Extracted at MUS Gem Field: Drilling to Come

A commercially viable quantity of rubies is already coming out of the ground at Mustang Resources’ (ASX:MUS) flagship Montepuez Ruby Project in Mozambique. Famed author Salman Rushdie once said that ‘good advice is rarer than rubies’, Rushdie obviously never visited the world-class Montepuez ruby region.

Oct 31, 2016 Continue Reading

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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