Mustang Resources on Target for Ruby Inventory as another Deposit is Discovered

Mustang Resources (ASX: MUS) is pleased to announce that its ruby inventory has grown to 120,397 cts , placing the company comfortably on schedule to meet its target of 200,000cts in time for its first closed bid tender in October this year.

KEY TAKEAWAYS:

• Mustang firmly on track for first sale of 200,000cts in October with inventory already hitting 120,000cts
• Rapid inventory growth due in part to success of upgraded processing plant at Montepuez ruby project
• Initial bulk sample confirms significant new ruby discovery on recently acquired licence
• Shallow secondary deposit, with initial bulk sample of 5,692 m3 delivering 4,445 cts of gem quality rubies
• Consistent recovery of stones classed in the special/premium category
• Extensive secondary ruby mineralisation proven over 2,200m strike (open ended)

Mustang Managing Director Christiaan Jordaan said the Company’s strategy to generate substantial cashflow from Montepuez was well on track.

“The successful commissioning of our upgraded plant and the growth in our ruby inventory should ensure we achieve a 200,000-carat inventory before October,” Mr Jordaan said.

“This will underpin our first closed bid tender and enable Mustang to demonstrate the cashflow potential of Montepuez.

“Work is now underway to select a safe-house facility and tender location. These sites are expected to be finalised within two months.”

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