The share price of ruby miner Mustang Resources clawed back some ground on Monday after the company announced a maiden inferred mineral resource for its Cuala graphite project, in Mozambique.

The project is estimated to host an inferred mineral resource of 5.4-million tonnes, at 13% total graphitic carbon, for 702 600 t of contained graphite.

Mustang said that the results of the mineral resource estimate confirmed Caula’s status as one of the highest-grade graphite deposits in the world. “This result is based on just a small portion of the total target area,” said MD Christiaan Jordaan.

“The mineralization remains open in all directions and there is excellent potential to grow the deposit significantly with the third round of drilling, particularly along the large-scale geophysical anomaly which has been defined.”

Mustang is hoping to start follow-up drilling within the next few weeks.

Mustang’s stock traded at a high of 5.3c each on Monday, up from an opening price of 3.9c.

Mustang shares were in a free-fall from late October, dropping from 10.5c a share on October 27 to 4.6c a share on November 2, after the company’s maiden ruby tender failed to deliver.

The company accepted bids for only 29 463 ct of rubies during the inaugural tender, despite taking 405 000 ct to tender, raising proceeds of only A$713 456. source: miningweekly.com