Mustang Resources Ltd. outlined a two-stage development plan for the Caula graphite project, part of its Balama property in Mozambique, and said it is on track for first production in mid-2109.
The stage-one development strategy comprises a mining operation of about 100,000 tonnes per annum of ore for 10,000 to 15,000 tpa of high-grade graphite concentrate.
The first stage of the project will also produce vanadium concentrate, which can be either sold or stockpiled for further processing in the second stage to high purity vanadium products.
The graphite and vanadium sales will be used to secure binding off-take agreements and funding for stage-two development, according to the March 15 release.
In the second stage, operations will expand to between 300,000 and 600,000 tpa of ore, and a full-scale processing plant will be constructed with a production capacity of 50,000 to 75,000 tpa of high-grade graphite concentrate.
The company will also construct a full-scale vanadium concentrate processing plant to produce refined vanadium products.
An ongoing concept study for Caula is scheduled to complete in the second quarter. In January, Mustang raised up to A$24 million to develop its Montepuez ruby project and advance the Caula project.
