Hi Chagsy, I'm replying to your straw you added to the MRG Metals section

I may have put in a bit to much info into the thread, but maybe you didn't read it fully. I think you missed the point of the whole post........

The thing I have not put anywhere else online but Strawman is this

MRG Metals has a new tenement

I found this when going on the Mozambique Mining Portal to get a screen shot of how close the new port will be to MRG land

The rest of the info was mainly background info, I prob put too much, But I am going to put a straw about the new $7+billion new port that is planned to go in just a few KM from the bottom of MRG tenements, that info I've already spoke about elsewhere.

So the new tenement, well it now means MRG Metals has basically all the land between DingSheng major deposit and the shore, where the new port and industrial park is going in. I have also heard rumours of a smelter going in which could further process the minerals before shipping off.

From the buying today it seems like someone has worked it out



 

I am reposting this as with further research into the DingSheng Dock I have found out more info & plans about the proposed deep water port (post-panamax) & industrial parks

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MRG METALS - MRQ / MRQ.ax

I often post about this stock on HC & Twitter, it is after all my biggest holding in real life, I can't put it in my Strawman due to the 2c rule.

I'm giving the Strawman community some juicy info that I won't be posting else where, this is a heads up for you guys, which is what I feel the Strawman community should be about

Yesterday I looked at the Mozambique Mining Portal and was going to get a screen shot to show where the new port is (10-20km away from MRG Deposits means lowest quartile costs are coming) and how close it is to MRG Metals land. I've been told by downrampers on HC that it would never happen which is the opposite to from what I have been hearing from people I know from Uni who live and work in Mozambique, well guess what, my mates were right as usual and the Port & Industrial parks are well advanced.

Below is a link to an article mainly about what DingSheng Minerals have been up to, I feel they are playing with fire in a major way. If you have Chrome it should translate it automatically

https://evidencias.co.mz/2021/08/05/depois-de-cometer-crime-ambiental-dingsheng-minerals-continua-impune-e-tenta-viciar-processos-para-construir-uma-doca-no-lugar-onde-esta-previsto-um-porto/

In this article it shows the most up to date plans I have seen for the new port.

The new port & industrial parks are going to cost over $7 Billion and it's on the door step of MRG Metals

As you can see this is a major project

So how does this effect MRG, well MRG tenements come right down to Chongoene and from this link you can see the port near enough starts there

https://hotcopper.com.au/attachments/port-jpg.3570091/?temp_hash=80aed782b856439db9edebcf23a9a696

you can see from this image that the port would be a very very short distance from the MRG Tenements ~2.5km away from the tenement border, how often do you get a mirco cap with this amount of infrastructure going in on it's door step???? Lowest quartile costs coming in my view

https://hotcopper.com.au/attachments/industrial-park-plan-jpg.3570187/?temp_hash=f9372204198ea83d9f3423a2c31989ef

But back on point the news is that.......................

MRG Metals has just pegged another lease

This has been in the hands of someone else, but now MRG Metals name is on it, it is right next to DingShengs deposit and also Regius Resources deposit who our country manager is also the Geo for
 

I'm not sure when there will be an ann for it, but it's amazing what you can find if you look in the right places

I'm not sure if this will affect the SP short term, which is one of the reasons i'm not posting the info elsewhere as I don't want day traders etc pumping the stock for pip trading, i'd rather the info was in the hands of investors, which I believe the Strawman members are, but we will see

In more of a trading section of info, there has been a single bid of 20million shares at the top of the buy line at 0.9 for at least a week (have been on holiday in NW WA so don't know fully) it's been tested a few times and it's solid, there has also been bots on and yesterday the SP was sold down in the auction to 0.9 by a single sell of $6.......yep.....$6.......pros at work in my view trying to accumulate

PLEASE KEEP THIS INFO ONLY ON STRAWMAN IF POSSIBLE

MRG METALS - MRQ / MRQ.ax

I often post about this stock on HC & Twitter, it is after all my biggest holding in real life, I can't put it in my Strawman due to the 2c rule.

I'm giving the Strawman community some juicy info that I won't be posting else where, this is a heads up for you guys, which is what I feel the Strawman community should be about

Yesterday I looked at the Mozambique Mining Portal and was going to get a screen shot to show where the new port is (10-20km away from MRG Deposits means lowest quartile costs are coming) and how close it is to MRG Metals land. I've been told by downrampers on HC that it would never happen which is the opposite to from what I have been hearing from people I know from Uni who live and work in Mozambique, well guess what, my mates were right as usual and DingSheng are paying for the port - https://clubofmozambique.com/news/mozambique-chongoene-port-construction-works-to-start-soon-miner-199155/

 their product will have to actually cross over 2 MRG Metals tenements to get to the port...........

.........Actually scrap that, and here is the juicy info........

Ding Shengs product will have to cross 3 MRG tenements

MRG Metals has just pegged another lease

This has been in the hands of someone else, but now MRG Metals name is on it
 

I'm not sure when there will be an ann for it, but it's amazing what you can find if you look in the right places

I'm not sure if this will affect the SP short term, which is one of the reasons i'm not posting the info elsewhere as I don't want day traders etc pumping the stock for pip trading, i'd rather the info was in the hands of investors, which I believe the Strawman members are

In more of a trading section of info, there has been a single bid of 20million shares at the top of the buy line at 0.9 for at least a week (have been on holiday in NW WA so don't know fully) it's been tested a few times and it's solid, there has also been bots on and yesterday the SP was sold down in the auction to 0.9 by a single sell of $6.......yep.....$6.......pros at work in my view trying to accumulate

PLEASE KEEP THIS INFO ONLY ON STRAWMAN IF POSSIBLE

Ilmenite Prices

Ilmenite prices have been rising for some time now, but in the past year they have now almost doubled

From the recent Stockhead article:

https://stockhead.com.au/resources/mineral-sands-prices-are-rising-and-ilmenite-is-the-hot-new-kid-on-the-block/

"But it’s ilmenite that’s really going gangbusters.

A bounce back so strong it’s like COVID didn’t happen

At the end of June Image Resources (ASX: IMA) reported the titanium feedstock hit US$340 per tonne – an increase of 66% since October 2020.

But Sheffield Resources (ASX:SFX) executive chairman Bruce Griffin says the price is more like US$400 a tonne.

“Zircon gets all the headlines – but it’s ilmenite prices that have actually been quite spectacular over the last 18 months,” he said."
 

I've not plugged in the recent prices into my spreadsheet for a while and when I did my mind was a little blown.......

 

Copied with permission from setfire2thehive on HC & Twitter @setfire2thehive, it gives a good run down of what I can see:

I can't seem to get links to work so you may have to go over to HC to see the charts/pictures

https://hotcopper.com.au/threads/general-discussion.5437752/page-1120?post_id=55143050

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Hi All,

I've been taking a position here over the last few weeks so I thought i'd introduce myself along with a bit of a surmised brain dump of the DD as to why i've landed here.

I'll put a pre-curser of thanks to Andrew who fielded my call a few weeks back now. I left a message and had a return call 10-15 minutes later and spent a good 30-45mins on the phone. I had already done some of the preliminary economic assessment but wanted to confirm my working/thought process with the team direct. It's also one of my mantra's with investing. I like to speak direct with the team, get a feel for strategy and also get a better understanding of the individual. You can learn a lot by picking up the phone.

Irrespectively, post that conversation I went away with a little more context and confidence in my figures.

So first things first - what commodity are we talking about? HMS (heavy mineral sands) and namely the element we're looking to on sell is titanium. But what i've observed here and come to realise is the market is really bad at understanding the grades and products therein so here's my laymans explanation.

We have a JORC which is 1.4bT @ 5.2% THM (total heavy minerals). Now of that 5.2% this is the elemental make up.



It's actually quite similar to rare earths. Whereby you have a TREO grade, but then you also have that made up of all these elements.



Okay so what exactly does MRQ have. IMO the market has straight away looked at the ilmenite grade and zircon grades in the THM and went 43% is no good. Rio and Savannah/Kenmare Richards bay are all 64%+. Yes they are, but they are also half the THM. meaning the overall content in MRQ's deposit is actually very good.

Now I am going to refer to strandline as a fairly advanced developer and the project I used to benchmark MRQ against.

Okay so here are the product streams in the ore.

So firstly let's understand what kind of quantities do we have in 1Mt of ore at 5.2%. Now i've just shown in the table that if you process 1mT of our dirt at 5.2% grade which is the JORC level and get 80% recovery through the process circuit this is the type of value you might get.

Now lets just sense check that against strandline as a I mentioned earlier.



Interesting right. Basically even our JORC grade would yield a higher revenue that strandline. I've also made a case for 6.2% grade which is what our grade would be at a 5% cutoff. That also leaves us 593mT of resource to work with.

Now let's sense check to coburn.




Lets look at At 2BN opex aud and roughly 500mT mined we arrive at a mined/t cost of $4. Now I will assume our opex to be largely the same. We have a very good strip - at surface deposit and I am going to assume a 20Mtpa operation. So overall mined tonnes should be similar. The obviously advantage we have is that for every 1mT we feed we get more out the back end. (see my revenue tables above.)


Essentially just use the table and now multiple it by the mined tonnes to replicate the actual plant.




So for the record strandline DFS suggest revenue around the 196M AUD mark. So i'm assuming in (the rest) category they're actually getting or account value for some of the other elements like Lx. Or the premium zircon. Hence why i've said they'll get extra revenue based on that.

With these very rough figures (for strandline i'm ok with it as a thumbsuck for MRQ.) So i landed at around 84M AUD post tax profit. (as this was an AISC, not ebitda. EBITDA in DFS was just over 104m AUD so again this feel about right.)

But theory being it gives us a really nice 100m AUD plus post tax earnings.
If people want to plug in a 250M AUD capex, with 100-110M AUD profit LoM around 30Y you'll hit a post tax NPV around 800-850M AUD.

Strandline for example is pre-tax around that amount. They trade at 240M AUD today. =30% of their NPV. If we scale back a lot of items i've mentioned I think there's a very good chance for 600M AUD NPV. Which at 14M we are around 2%.

Things i haven't included into these economics is upside in the Titanomagnetite which i'm informed is actually very value accreditive and also told that it exists in a favourable process form. Whereby others are in a hematite formation which requires prelim processing. Basically mother nature has already done stage 1 of the processing and having spoken with the team they're focusing on the core ilmenite for now.

Okay so a couple other things for consideration but most of this other discussion i've seen is the location. Yep flag it but Rio is also operating in the country and touted smelter potentially coming in.

Other risk would just be the cash position. When i spoke with Andrew was informed they're funded until around q1 maybe a bit further. The intent was that this study we're about to drop should exceed markets expectations. Now if it drops anything like 500M aud and i think it could be 600-700M aud then the strategy is to hopefully raise funds 3-6months from now at a higher price. I'm investing now because i reckon the market has completely missed this one. I've read these forums for a long time and even the people i've seen commenting on twitter etc haven't really put together anything substantial in terms of quantifying the economics. So as mentioned i've been buying here for a few weeks and i intend to stick around and hopefully if there's a raise in 3-6months i'll be able to participate and grab some more.

Anyways that's kind of a summary and i'll continue to provide a few insights moving forward - but didn't want to drag this on too long. People are as always advised to DYOR.

Also for complete disclosure for those who aren't aware I will free-carry at some point and will indicate to the market when doing so. I am a long investor, maybe 3-5 stocks a year and this is my 4th i think. I usually spend 3-6weeks running the numbers and absorbing what i can about the market. I think that you can easily make a case for 80M AUD market cap. That could feasibly value us at around 10-15% of what i expect the NPV for the PFS. The drilling that they're doing is ultimately to allow a high resource delineation. The economics they're referring to about 1% increase adds x amount of value can be seen from what ive done in the excel showing 5% feed vs 6.2% feed. This is an increase cutoff of 1%.

The next critical hurdle post that will be an offtake.
Updating sentiment to buy although I haven't physically purchased today but have made several over the last 2-3 weeks.

SF2TH

A recent PayDirt article on MRG Metals (ASX code MRQ)

I find this company/deposits massively misunderstood and undervalued

______________________________________________________________________

MRG in defining chapter of its life

MRG Metals Ltd is in a make-or-break moment for the remainder of this year to prove its heavy mineral sands project in Mozambique.

When the company reported a 1.4bt maiden resource estimate last year from Corridor Centrals. Koko Massava tenement, it pinged the radars of shareholders and spruiked its market cap considerably. But the bullish sentiment for MRG has since settled and managing director Andrew Van Der Zwan is desperate to make others see the same potential he does.

"We're in a great space in terms of a company that’s a micro company”, Van Der Zwan told Paydirt.

"Unfortunately, from a share price point of view, the market hasn't really recognised us as anything more than a blundering junior resource company floundering away in Africa.

The next six months is really going to be 'is MRG's Mozambique heavy mineral sands project going to make it or not?'

Where the disconnect in share price comes from Van Der Zwan believes, is the misunderstanding of how MRG’s resources should be read, given it has a mixture of both pure and trapped ilmenite.

"The market said you’ve got a lot of tonnage, it’s 5.2% that sounds fantastic. But oh, crikey, you’ve only got 43% ilmenite and we won't give you a credit for titanomagnetite” he said.

Compared to other explorers who have higher pure ilmenite grade, MRG feels misread.

"The market [got confused] in a way and I think we've struggled since then to get any leverage," Van Der Zwan said.

"What we want to do now is move up the curve on ilmenite, both on base total heavy minerals grade and the components of the sand”.

MRG seeks to achieve this through drilling two new targets and revisiting its resource by mixing airborn surveys with hand auger drilling to identify targets at "cents by the tonne".

Then, it hopes it will have increased its base tonnage up to 7%, which could add $3/t, and also increase pure ilmenite to at least 50%.

"From that, well take the best dirt or the best sands that we've got and feed it into a scoping study, Van Der Zwan said.

"So, we could improve the inground value of our resource by $3-4/t. That’s absolutely massive and I don't think the market comprehends that. It is frustrating”

At time of print, the company identified a new target at its Marao project, north of Corridor Central, showing a highest auger sample of 13.5m @ 6.7%.

Increasing foreign investment from China into Africa is another thing Van Der Zwan is optimistic about, given a gas pipeline is being pitched for the oil fields near MRG’s project.

"If the gas pipeline project proceeds, it runs just south of our property, he said. "We've already been in preliminary discussions over potential offtake energy agreements. That would be enormous and could dramatically improve our operating costs.

Another piece of infrastructure being built is a rail line that will run through Zimbabwe, Tanzania and parts of South Africa. This isn't particularly important for MRG as the company plans to haul by truck but represents a growing industrial zone in Van Der Zwan’s eyes.

"At the proposed industrial park adjacent to the planned port, not us, but somebody might build a smelter there, especially because of Chinese investment, he said.

"As a junior exploration company, it, pretty rare to actually be potentially in the middle of massive infrastructure that can reduce your cost, so that, a really favourable thing for us.”

Infrastructure aside, the company is focused on redefining itself to the market through the remainder of 2021.

"We're going to move in the next six months to not the decision to mine, but certainly a decision to move forward based on what will have to be exceptionally good economics. We are confident they will be.” Van Der Zwan said.

"We have a method of exploring for this resource very, very cost effectively, and there's still a lot of dirt to explore, so there is still exploration upside. That's the opportunity for investors.

"Everything we said we will do, were doing. I think we need to get the market to the point where it actually believes this. If we fail, we won't fail without trying, that, for sure”

I've been forwarded a recent copy of the MRQ T20

It shows it is very solid, the only line to have sold is Citi Nominees who were a new addition last time.

The rest have either stayed the same or bought more

The Vendors of the Mozambique tenements are still holding more than 30 months after the deal went through 

I have blanked out the details of anyone not involved with the company in some way for their privacy, the ones not blanked out are either board members, vendors or a broker

There are actually 3 double holdings so in my view this is actually a T17

RIO has shut down it's Richards Bay Heavy Mineral Sands project

This is very bullish for all other HMS companies, the last time Richards Bay shut down MRG Metals SP spiked

MRG Metals is in Mozambique along with Kenmare who produce 7% of the worlds supply

• Leapfrog 3D modelling of aircore and auger drill hole data from Koko Massava, Nhacutse and Poiombo deposits has outlined volumes of very high grade mineralisation from surface and to depths greater than 60 metres.
• This modelling demonstrates the potential for MRG to deliver 3 very high grade Mineral Resource Estimates (MRE’s), higher grade than the maiden Koko Massava MRE (1,423 Mt @ 5.2% THM, ASX Announcement 22 April 2020) and as a result, to succeed in our stated Exploration Strategy of discovering potential mine start-up HMS deposits

• Mineralogical studies of the 3 deposits are ongoing and will be incorporated into the 3D modelling and upcoming MRE’s (Refer ASX Announcements 31 July 2020; 31 August 2020) within the Heavy Mineral Concentrate (HMC).
• The models will be updated and further developed on receipt of all assay results from the associated recent drilling programs.
  
  https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02389465-3A569678?access_token=83ff96335c2d45a094df02a206a39ff4

Visual results of the infill drilling at the Nhacutse deposit for MRG Metals, it actually joins up the 2 deposits they had found there in the past. Results now off to lab for full analysis, visuals are usually lower than actuals as they are/have been conservative on the visuals in the past.

Mineralisation remains open in ALL directions including at depth.

Mineralisation is from surface in ALL holes

This in my view is a beast of a deposit, it will have a new train line running past it to a new port, costs are expected to be in the lowest quartile, tiny MC for what they have

A very recent presso from the Mines & Money event

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02386645-3A569178?access_token=83ff96335c2d45a094df02a206a39ff4

• Outlook is improving -market has bottomed and is on the rise
• Titanium Oxide and Titanium metal demand increasing
• Titanomagnetite has potential value in high Iron Ore price environment
• Improvement in Ilmenite concentrate a key driver for MRG, with recent improvement and prices now ranging from USD$180-USD$250/T
• MRG is an Ilmenite play with significant Zircon and Rutile and potential iron ore credits?Ilmenite price will increase with TiO2demand

• 4 high calibre 100 % owned projects (746km2) and 1 further project under application in Mozambique –a world prolific HMS province
• Corridor Central and South Portfolio –2 contiguous tenements containing 13 high priority targets
• 1.4 Bt@ 5.2% Total Heavy Mineral (THM)JORC Resource (4% cut-off grade) delivered at Koko Massava (refer ASX: 22 April 2020)
• Infill drilling has identified very high grade (>6%) from surface
• Targeting early mine life feed across multiple targets -MRE’s upcoming within Koko Massava, at Nhacutseand Poiombotargets
• Ongoing exploration programs levering off skills and efficiencies developed at Koko Massava.
• Dual speed approach: exploring across multiple tenements whilst progressing to mine development at Corridor Central and South. Prospects delivering thebest 100-200MT MRE likely to feed into scoping study late 2021 –potential Feasibility Study in 2022
• Exploration discovery costs (to Inferred Resource) lowest in industry with discovery/tonne running at under AUD 2 cents / tonne
• MRG Metals is a junior ASX explorer, punching way above it’s weight!
• A world class JORC classified discovery in the bag -now working towards a 100 year mine development

MRQ recent T20

well actually it's a T17 as there are 3 double holdings in it.

11 entries of it are involved or have been involved with the company in some way, ie in my view they know where it is going

Sofala was the group of Geo’s MRG Metals bought the tenements off over 30 months and they still hold their shares

Actually, the T10 holds more than 20.3% of the company, as Jolanza is Chris Gregory & Andrew Van Der Zwan has 2 holdings as well

So the T10 actually holds 22.31%

So who were the Vendors:

Brendan Cummins - Chief Geo at STA http://www.strandline.com.au/irm/content/management.aspx?RID=434 also http://westoria.com.au/team.php

Mark Alvin - Geo and our old country manager who only left due to covid restrictions for getting in and out of Australia https://www.linkedin.com/in/mark-alvin-56546858 who has also worked for Strandline + Rio amongst others

Adrian Hill - http://westoria.com.au/team.php

There were a couple of others but these were the people in the main positions of Sofala who MRG metals bought out

A round-up of MRG Metals, well worth a watch in my view

MRG Metals is in my view an unloved gem in an unloved sector - mineral sands

Massive potential, currently stupidly cheap

https://www.youtube.com/watch?v=5gtoYNGbZiM

Today's Ann with high grade results coming out and open at depth!!

13 deposits at the corridor tenements

2 recently granted tenements away to get drilled

1 pending tenement 

monster in the making

A recent interview for Paydirt TV with MRQ - MRG Metals

https://www.youtube.com/watch?v=GCiAcxjv3Nc

MRG Peak interview

This is well worth a watch, it's easily the best and quickest way to quickly understand MRG Metals, the company, the history, what they have in the ground, and also the potential of where this is going.

NOTES BELOW Take 14 minutes out of your day and watch it

@mrg_metals ASX Code - MRQ

A few quick notes from this -

- MRG Metal reviewed ~135 project around the world before settling on these HMS tenements

- Landed on HMS for scale of projects and ease of exploration

- Koko was/is the largest target

- Hand auger drilling is low cost - a team of 3-4 drillers, labour intensive but cheap and fast, can drill a 15m hole in 1/2 a day, very cost-effective

- Koko - 1st target 1st success - Koko's MRE is ~1.4BT @ 5.2%, this will be expanded up to over 2BT with some infill drilling to bring the data up to JORC standards

- Koko is a multi billion $ contained resource - 5.2% @ 4% cut off tells you that the experts say it's economical to mine at 4%

- Koko is a 100+yr mine life

- Now find the best 100-200MT part of Koko or other deposits to kick start everything

- Koko is going to underpin for multi decades

- Get best 5-10 year early mine life economics to skyrocket the NPV to make funding easier in the future

- Not looking for another large deposit like Koko, although some of these areas might grow to that

- Corridor South contains 2 targets looking very good, looks like 50-100MT zones in 3/4 areas

- Ann coming about M&M tenements in the next few weeks

- Been able to get some info on results from Regius's tenements which are between M&M & Deposit1

- East side of Koko has higher VHM

- Were able to continue in Mozambique even with COVID

- News flow - assay results from now to Xmas, M&M update ann, Drill program for M&M