MRG Metals Secures Mozambique Mining Licence, Advances JV and Exploration
MRG Metals Limited has achieved a significant milestone with the granting of the Corridor Central mining licence in Mozambique and is progressing exploration and joint venture development, while metallurgical testwork in Zimbabwe signals potential new opportunities.
- Corridor Central mining licence approved and signed by Mozambique’s Minister
- Joint venture with Sinowin Lithium holds 70% equity, advancing heavy mineral sands projects
- 100-hole infill drilling completed at Magonde target with samples sent for analysis
- Corridor South mining licence nearing final approval
- Phosphate metallurgical testwork underway at Zimbabwe’s Shawa carbonatite, results expected Q3 2025
Mozambique Joint Venture Progress
MRG Metals Limited (ASX: MRQ) has reported substantial progress in its Mozambique Heavy Mineral Sands (HMS) projects through its joint venture (JV) with Sinowin Lithium (HK) Co., Ltd and Sinowin Lithium Cobalt Ltd (collectively SLC). The JV structure grants SLC a 70% equity stake, with MRG retaining 30%, and outlines staged equity adjustments tied to production milestones.
In a key development, the Mozambican National Mining Institute (INAMI) approved and the Minister of Mineral Resources and Energy signed the Corridor Central 11142 Heavy Mineral Sands mining licence. This licence encompasses the world-class Koko Massava deposit, boasting a high-grade JORC Resource of 103 million tonnes at 6.6% total heavy minerals (THM) using a 5.5% cut-off grade.
The Corridor South 11137 mining licence is in the final stages of approval, hosting the Nhacutse and Poiombo deposits with a combined high-grade JORC Resource of 257 million tonnes at 6.0% THM. The imminent licence approval is expected to accelerate mining activities planned by JV partner SLC in 2025.
Exploration Advances at Magonde and Corridor North
MRG completed a 100-hole infill auger drilling program at the Magonde HMS target within the Marao 6842 licence. The program, designed to refine the understanding of mineralisation, involved drilling at 250m spacing to a depth of 13.5m, supplemented by quality assurance and quality control (QAQC) holes. Samples from selected holes with estimated THM grades above 3% have been dispatched to Analytical Laboratory Scientific Services in Cape Town for assay and mineralogical analysis.
These results are anticipated to provide sufficient geological and assay data to support a JORC-compliant Mineral Resource Estimate (MRE) for Magonde. Concurrently, exploration has shifted to the Corridor North licence, where a 130-hole auger drilling program is underway to investigate a potential northern extension of the Koko Massava deposit.
Zimbabwe Phosphate Metallurgical Testwork
In Zimbabwe, MRG has initiated sighter metallurgical testwork on phosphate mineralised samples from Target 1 within the Shawa carbonatite mining licences. The bulk sample of approximately 50kg aims to assess the feasibility of producing a concentrate grade around 30% P2O5. Initial exploration has revealed promising multi-commodity targets, including rare earth elements (REE) and vermiculite.
The testwork, conducted by SGS Laboratory in Johannesburg, is expected to deliver results in the third quarter of 2025. These findings will be critical in evaluating the economic potential of the Shawa phosphate project and its associated commodities.
Financial and Operational Overview
MRG reported exploration and evaluation expenditure of $84,487 for the quarter, with no production or development activities undertaken during this period. Payments to related parties totaled $95,250, covering director fees and consulting services. The company ended the quarter with $388,000 in cash and cash equivalents, maintaining sufficient funding for ongoing exploration activities primarily supported by the JV partnership.
No work was reported on Australian assets during the quarter, reflecting a strategic focus on African projects.
Bottom Line?
With key licences secured and exploration advancing, MRG Metals is poised for critical resource updates and JV milestones in the coming quarters.
Questions in the middle?
- When will the final assay results from the Magonde drilling program be released, and how might they impact resource estimates?
- What are the timelines and conditions for the Corridor South mining licence approval and subsequent mining commencement?
- How will the outcomes of the Zimbabwe phosphate metallurgical testwork influence MRG’s strategic focus and project prioritisation?
