Mustang Resources could be producing at the Caula graphite-vanadium project in Mozambique by the middle of next year.
The company has completed a strategic review at the project, which approved a plan for trial mining and processing operations to begin at Caula during the second quarter of 2019.
According to Mustang, the trial mining and processing are expected to generate detailed technical information for use in feasibility studies on full-scale project development.
Mustang considers that trial mining and processing operations at Caula could produce both graphite and vanadium concentrates.
The vanadium concentrate would either be sold or stockpiled for further processing to high-purity vanadium products as part of full-scale development.
Mustang noted that the strategic review does not form part of its scoping study for Caula.
“Development of a full-scale mining and processing operation will be considered by the scoping study,” Mustang said in an ASX announcement.
“Conditional on a positive outcome of the scoping study, a definitive feasibility study (DFS) will be undertaken to serve as a basis for project development and financing.”
The Caula project has a maiden JORC inferred resource of 5.4 million tonnes (Mt) of graphite at an average grade of 13 per cent total graphitic carbon content (TGC) for more than 700,000t contained graphite.