Mustang Resources Ltd (MUS) – ASX Release

Feasibility Study Drilling Completed at Caula Vanadium-Graphite Project

Drilling returned large visible high grade graphite & vanadium-mica intersections

Highlights

  • The feasibility study drilling program on the Caula Vanadium-Graphite Project in Northern Mozambique has been completed ahead of schedule

  • 3,025m of diamond drilling and 1,130m of reverse-circulation drilling within 34 holes has been successfully completed

  • Drilling returned futher large visible high-grade graphite and roscoelite (vanadium mica) with graphite and roscoelite mica mineralisation intersected in all 34 holes

  • Visible intersections of graphite and roscoelite (vanadium mica) confirm the extension of the current deposit boundaries to the East, West and South

  • Mineralisation has now been defined over a 850m strike length (from 540m previously) and estimated 430m wide true thickness (from 230m previously)

  • Caula hosts a JORC (Measured) mica-hosted vanadium resource of 22Mt @ 0.37% V2O5 (0.2% cut-off) for 81,600 tonnes of vanadium pentoxide and within the same deposit, a JORC (Measured) graphite deposit of 21.9 Mt @ 13.4% TGC (8% cut-off) for 2,933,100 tonnes of contained graphite

  • The Scoping Study is well advanced with results to be released by 5 October 2018, followed by an expected Resource upgrade and feasibility studies in Q4-2018 and Q1-2019

  • Phase 1 trial mining and pilot plant processing is on track for mid-2019, to provide early cashflow from both graphite and vanadium

  • Mustang to change its name to ‘New Energy Minerals’ (ASX:NXE) (subject to shareholder approval at 2 October 2018 EGM)

  • The name change reflects the Company’s new focus on critical commodities for the lithium and vanadium battery markets, next generation steel and fire- resistant building materials


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