Jun 16, 2015

Mustang Resources\' Reports Discovery of Gem Quality Diamonds in Mozambique Mine Site

Mustang Resources, a company listed in Australia with mining and exploration activity in Africa, has reported in a media release that it has recovered 16 diamonds which it has visually identified as gem-quality, from the site of the Save River Diamonds Project in Mozambique.

The recovery was from bulk sampling carried out by the miner following the commissioning of its sampling plant and equipment on March 23, 2015.

The release stated that gravels from five sample pits close to the plant and the camp were processed and the recovery has lent credence to the exploration model that diamonds may have travelled from Zimbabwe, down the Save and/or Runde rivers and been deposited downstream of their confluence on the Mozambican side of the border (downstream from Murowa and Marange diamond fields in Zimbabwe).

A total of 9.68 carats were recovered including a 1.64 carat stone from Pit 2, the statement noted.

It added that the company will now scale up operations from the present capacity of 100 tonnes per day to be able to process up to 1000 tonnes per day. It will also seek to explore deeper than the 4 metre depth that was currently achieved due to the presence of a calcrete layer between 2.5 and 4 metres thick.

Ian Daymond, Chairman, said, “This discovery is the first known recovery of alluvial diamonds of marketable size and quality in Mozambique. It was an impressive achievement by the operations team to mobilise the plant and equipment to site, given this occurred in the rainy season and in a remote area of south-western Mozambique. This has been a truly pioneering effort and an excellent start to the project which Mustang considers to have great potential.”

The Company has also agreed to acquire majority interests in two diamond prospecting and exploration licences in Mozambique which may host alluvial diamond deposits, the release noted.