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ReGIonAL RoUnDUP AFRIcA

MRG finds semblage at Nhacutse – more than 67%
ilmenite, plus-2% zircon and plus-2% rutile
– is more attractive.
“It’s not consistent across the project are-
as so it’s about trying to marry up high-grade
energy in zones at lesser assemblage with higher-
grade assemblage with lower grades,” Van
Der Zwan said. “We think we could actually
Mozambique have that within Koko Massava but will first
explore our vast portfolio before we go back
to that deposit.”
MRG recently added the Marao and Mar-
ruca licences to its asset base, increasing
its land position by 385sq km. Adding to an
already large landbank may seem ambitious
for a junior of MRG’s standing but Van Der
Zwan is confident the company can efficient-
ly test the ground.
“We have identified a low-cost methodol-
ogy for exploration,” he said. “It means we
are able to spend cents in the dollar to find
resources which puts us in a great position to
explore effectively.”
The nature of mineral sands deposits also
allows for cheap exploration. Van Der Zwan
said this was a factor in MRG moving into the
space.
“It was one of the reasons for getting into
mineral sands,” he said. “As a small company
you can get on the ground and explore quick-
ly and cost-effectively.”
That may provide a short-term sugar hit
RG Metals Ltd enjoyed a strong start but Van Der Zwan also has wider ambitions
Mto the year with its shares on the ASX in the sector.
climbing 50% as investors warmed to its Af- “We have taken a long-term view,” he said.
rican mineral sands story. “After looking at more than 130 assets, many
MRG started 2020 with a big maiden of them in the sexy commodities like lithium
resource on its Corridor Central/Corridor and nickel, we decided that while mineral
South mineral sands project in Mozambique sands didn’t have the sex appeal the supply/
and while drilling results in January 2021 demand characteristics were moving in our
were not quite as headline-grabbing as a favour.
1bt JORC number, they did align neatly with “We believe mineral sands will have its day
MRG’s strategy for its Mozambican portfolio. and that day is coming but we are not there
On January 7, the company announced yet. Prices are improving and global demand
assays including 30m @ 5.76% total heavy is increasing. We think that will continue and
minerals (THM), 30m @ 4.77% THM, and at some point, the market will start to look at
30m @ 5.15% THM (including individual 3m mineral sands and get excited.”
assays up to 8.88% THM) from an 8sq km The change may already be in process.
zone on the Nhacutse prospect, part of the Fellow African-focused mineral sands juniors
company’s Corridor Central/Corridor South such as Strandline Resources Ltd (82.6%)
project. MRG is capable of applying low-cost drilling and Sovereign Metals Ltd (241%) have been
Having delivered the large tonnage maid- methods across its Mozambican portfolio upwardly mobile on the ASX over the last 12
en resource at the Koko Massava deposit, of assets months. And, in Base Resources Ltd, MRG
MRG has turned to Nhacutse and other has the perfect role model to look up to.
prospects on the project as part of a plan to “We are not necessarily looking for a mon- “Base is an excellent small company to
identify higher value mineralisation. ster, we have already got one in Koko Mas- compare MRG to,” Van Der Zwan said of the
“It was a great result to get a multi-billion sava but we are looking for the best 100mt $350 million mineral sands miner which has
dollar asset with your first attempt [at Koko resource within the entire portfolio to kick- an operating mine in Kenya and a develop-
Massava] but that is just the start,” MRG start the first 10 years of operation.” ment asset in Madagascar.
chairman Andrew Van Der Zwan told Pay- Nhacutse may represent that. While Koko “Our projects share many similarities with
dirt. “We have identified other targets and Massava’s 1bt @ 5.2% THM is relatively Base’s Kwale project in both mining and the
will continue to drill them.” high grade, the mineral assemblage makes high-quality assemblage at lower overall
The emphasis of the drilling strategy is to it lower value, with 37-45% of the resource grades.”
find higher assemblage mineralisation. made up of ilmenite. In comparison, the as- – Dominic Piper

aUSTRaLIa’S PaYDIRT FeBRUaRY 2021 Page 47