ASX-listed ruby miner Mustang Resources’ market value has tripled in recent weeks as the company’s relocated processing plant in Mozambique has hit its straps and the company’s first batch of rubies have made their way into American polishers’ and dealers’ hands.
The rate of processing at Mustang’s (ASX: MUS) newly relocated plant for its Montepuez project in Mozambique has reached its target of 525 tonnes per day.
The company said this was triple the rate recorded before the plant was relocated to the project site, adding that processing rates had been as high as 1,000tpd.
“The scale-up is important for the company to complete its 150,000 tonne bulk sample as soon as possible to determine the grades, quality and to complete commercial viability through the sales of rubies recovered,” Mustang said in an announcement.
It said the new processing rate would increase recoveries from the project, ahead of its planned first ruby sales to leading gem wholesalers in March.
The company is still considering how best to market its rubies – either through rough rubies sold at auction or cut and polished stones supplied direct to wholesalers and manufacturers – with the company having engaged an American gemmologist to conduct a full market study.
But Mustang managing director Christiaan Jordaan said the company was now on the cusp of seeing its hard work and planning pay off in terms of sales and revenues.
“The cutting, polishing and certification process now underway will provide us with more key information about the value, grades and commercial viability of our ruby project and pave the way for sales to luxury wholesalers next month which will help define the future marketing strategy of the company,” he said.
The company sent its first parcel of rubies from Montepuez to the US last month for cutting and polishing, with the stones to be certified at the Gemological Institute of America ahead of their planned valuation and sale.
Shares in Mustang were up 14% earlier today to A6.5c in morning trade, finishing the day at 6c. the company’s market valued has risen to A$28.8 million (US$21.9 million).
Source: Mining Journal
