MRG Metals (ASX: MRQ) reported that auger drilling of two targets within in its South Corridor tenement in Mozambique have confirmed high-grade heavy mineral sands mineralisation (HMS).
Corridor South covers 208 square kilometres of paleodunes also known from historic drilling to contain significant HMS mineralisation.
Previous work established a large, high-grade mineralised zone with total heavy mineral (THM) grades up to 7.4% extending over an area of 6.5km by 4.5km.
The new hand auger results confirm extensive high-grade mineralisation at the Nhacutse prospect that had been defined by previous visual estimates.
MRG says these latest results indicated the Nhacutse target has a central high-grade core with more than 5% THM – the core covering an area 2.5km by 1.5km.
But the highest-grade assay to date for any auger hole in MRG’s Corridor projects has been returned from the Bungane target, with 12m at 7.82% THM. The bottom of that hole sample, at a depth of 12m, assayed 7.79%.
Eleven of the 50 auger holes assayed to-date have average uncut downhole grades higher than 5% THM.
Other holes include 12m from surface at 5.98% THM, 12m from surface at 5.67% and 10.5m from surface assayed at 5.6% THM. All holes ended in mineralisation.
MRG said auger drilling will continue to test the remainder of the anomalies. Aircore drilling will then follow.
Exploration areas in strategic location
The company says Corridor Central and Corridor South tenements are strategically located approximately 10km south of the Corridor Sands (Deposit 1) where, according to media reports, China’s Dingsheng Minerals has so far spent more than US$1B (US$1.44B).
Additionally, Rio Tinto (ASX: RIO) and Savannah Resources are planning to develop the Chilubane deposit, located 10km south of MRG’s Corridor projects.
Chairman Andrew Van Der Zwan said drilling at Nhacutse/Bungane has generated at least one new aircore drill target.
“The target zone of 4sq km delivers another significant follow-up target of potential multi-year production,” he added. That estimated production capacity is now at about 100 million tonnes.
“Through our rapid and cost-effective augur exploration of the Corridor Central and Corridor South tenements, we have now identified multiple very high grade aircore drilling targets from assay results than continue to confirm our strong visual estimates,” said Mr Van Der Zwan.
MRG’s auger holes are part of a program of broad-spaced drilling designed to test geophysical anomalies.
Written by Lorna Nicholas
Source: Small Caps