Emerging gem explorer Mustang Resources has announced an upgrade for its Montepuez ruby project exploration licence, having been granted a mining concession valid until 2042.
The concession, entitled ‘Mining Concession 8955C’, was granted by the Government of Mozambique, and covers over the area of Mustang’s older Prospecting and Exploration Licence (8245L).
The company, which also owns the Caula graphite project, will now complete an environmental impact assessment within three years and mine development must start within 24 months of the environmental licence being granted.
Mustang’s Montepuez project consists of four licences covering 19,500 hectares, and is adjacent to Gemfields’ own 33,600 hectare Montepuez project, thought to be one of the world’s largest ruby deposits.
In January of this year, Mustang received nearly $20 million in funding for the project from US company Arena Investors. Last month, the company also announced a $4.4 million fund raising for its ruby and graphite projects, with its largest current shareholder (nearly 8 per cent) Regius Resources Group agreeing to take up $200,000.
Bernard Olivier, managing director of Mustang Resources, said that the area covered by the new concession represented a crucial part of the deposit.
‘The granting of the mining concession marks another important step in our strategy to establish Mustang as a consistent supplier of ethically mined rubies,” he said.