MUSTANG RESOURCES SENDS MOZAMBICAN

The Australian mining company Mustang Resources on Friday announced that it has sent rubies from its concession in Montepuez in the northern Mozambican province of Cabo Delgado to the United States for cutting.The company sent its first commercial batch of 6,221 carats of rubies and corundum to the US to gain expert opinion on marketing strategy – particularly on whether it should sell its rubies in rough or cut form.According to the company’s managing director, Christiaan Jordaan, “this shipment will play a vital role in helping us to place market values on our rubies as well as growing awareness and understanding of our world-class stones amongst customers. As a result, we will be better placed to estimate the revenue we can generate from our rapidly growing production profile.” Among the rubies sent are what Mustang calls five “special stones” which include “two rare 24 carat rubies”. These stones will be cut by the designer Meg Berry.Mustang also announced that it has moved its processing plant closer to its key ruby deposit, resulting in a tripling of its processing rate.The Montepuez Ruby Project consists of three licenses covering 15,800 hectares directly adjacent to the world’s largest ruby deposit which is mined by the London-based company Gemfields. So far, Gemfields has held seven auctions of Montepuez rubies which have netted a total of 225.7 million US dollars.Mustang also has a majority interest in two diamond exploration licences along the Save River, in central Mozambique, downstream from the Murowa and Marange diamond fields in Zimbabwe. In addition, Mustang holds the rights to a graphite resource near the world class graphite deposits discovered by Syrah Resources and Triton Minerals.Following the announcement, the share price of Mustang rose sharply on the Australian stock exchange from 2.7 to 5 Australian cents.