Mustang Resources has secured a mining concession for the Montepuez ruby project, which is located in Mozambique.
The new award represents an upgrade of the company’s existing concession for the area, Prospecting & Exploration Licence 8245L.
The latest agreement, Mining Concession 8955C, is set to be valid for a 25-year period up to 5 December 2042 and will allow the company to proceed with its development of the project.
Mustang Resources managing director Bernard Olivier said: “The area covered by the new mining concession represents a crucial part of the deposit and most of the ground covered by our current bulk sampling and test pitting campaign.
“The granting of the mining concession marks another important step in our strategy to establish Mustang as a consistent supplier of ethically mined rubies.”
The company has been conducting ruby bulk sampling and pitting activities over the past seven months, primarily within the 8245L licence.
Mustang is now planning to complete an environmental impact assessment (EIA) and associated enjoyment of land (DUAT) within three years following the receipt of the latest mining concession.
Mine development is currently slated to commence within two years of the environmental licence being issued.
The project is situated in the Cabo Delgado Province of northern Mozambique.
It comprises four licences covering a total area of 19,500ha adjacent to the ruby deposit discovered by Gemfields.
Mustang reported last month that the company had highlighted additional gravel bed targets over a 3km-long river and its associated tributaries system via an exploration programme.
The bulk sampling and pitting initiative increased the project’s gravel bed extension from 3.3km to 4.2km.
Mustang also secured A$19.95m in funding from US-based institutional investor Arena Investors in January, which will be used to support the development of the Montepuez ruby and Caula graphite projects.