Australian miner Mustang Resources Limited has announced that it will by mid-April acquire majority stakes to two more exploration licences to expand its resource portfolio within the Balama graphite mining project, in Mozambique.

In a cautionary notice issued to shareholders on Friday, Mustang Resources MD Christian Jordaan said the company would acquire 90% shareholding rights to Mozambican graphite exploration licence No 6363L, and 95% rights to exploration licence No 7560L, which were both issued to Regius Resources Group in September 2015.

“Mustang Resources has announced the exercise of its option to acquire the rights to a 90% and 95% interest in two additional exploration licenses north of the company’s existing Balama graphite project in Mozambique,” Jordaan said.

However, the completion of the acquisition of the licences, which cover an area measuring 2 085 km2, will only be confirmed if the company pays an outstanding balance of $50 000 to the Regius Resources Group by April 15, 2016.

The company said electro-magnetic surveys conducted within both licence areas have identified multiple priority targets for exploratory drilling with a high potential for the discovery of high-grade graphite deposits.

“Following detailed analysis of all available geophysical data, an airborne EM survey was completed over licences 6363L and 7560L in September 2015. Both licenced areas yielded well-defined EM anomalies. These anomalies were prioritised and warrant immediate follow-up exploration,” Jordaan said.

“The company is encouraged that the EM anomalies identified may represent an extension of the highly prospective graphitic schist unit of the metamorphic belt which extends from northern Mozambique to southern Tanzania. Therefore, the possibility of discovering a high-grade graphite deposit along strike is a reasonable expectation.”

Apart from graphite mining, Mustang Resources Limited is also engaged in diamond exploration operations in Mozambique.

Source: Mining Weekly