MRG Metals Reports Up to 4.57% THM at Marao, Corridor Central Licence Granted

Joint Venture Formation and Regulatory Progress

MRG Metals Limited (ASX: MRQ) has marked a significant milestone in its Mozambique heavy mineral sands (HMS) projects with the formal establishment of the joint venture company Terriland. Sinowin Lithium (HK) Co Ltd and Sinowin Lithium Cobalt Ltd collectively hold a 70% stake, while MRG retains 30%. Terriland owns 100% of Tailan Mining Ltd in the UAE, which in turn will hold the Mozambique mining licence applications through Sofala Mining & Exploration LDA and Sofala Mining and Exploration 1 LDA, pending government approvals.

After navigating delays caused by Mozambique’s recent election-related social unrest and a government restructure that temporarily closed the national mining institute (INAMI), the JV secured the Corridor Central mining licence (11142C) in mid-March 2025. This licence grant followed payment of approximately USD 167,000 in taxes and guarantees, enabling the JV to advance mine development activities.

Exploration Success at Marao Project

While still 100% owned by MRG, the Marao Project is included in the JV agreement with Sinowin, who sole-fund exploration programs. Recent infill auger drilling at the Magonde target within Marao has delivered encouraging assay results, with total heavy mineral (THM) grades reaching as high as 4.57% over 1.5m intervals from surface to 13.5m depth. Several holes averaged above 3% THM, surpassing previous visual estimates by about 8%, underscoring the robustness of the mineralisation.

Historical mineralogy studies indicate that nearly half of the THM content comprises valuable heavy minerals such as rutile, zircon, and ilmenite, with titanomagnetite also present. These results enhance the potential for a JORC-compliant mineral resource estimate at Magonde, which could materially increase the JV’s asset value.

Operational and Infrastructure Developments

The JV has also secured confirmation of electrical supply from Electricidade de Moçambique (EDM) for the first year of operations, with infrastructure costs estimated at USD 0.82 million. Planned plant expansions in years two and three will require additional substation work, with capital commitments approaching USD 2 million. This power certainty is a critical enabler for the JV’s staged development plans.

Exploration at Corridor North is set to commence shortly, following the resolution of community access approvals delayed by earlier unrest. Meanwhile, the Environmental Impact Assessment Study (EIAS), valued at over USD 500,000, is progressing despite earlier delays, with completion expected by mid-third quarter 2025.

MRG’s Broader Portfolio and Next Steps

MRG continues to manage and fund its remaining exploration portfolio outside the JV, including rare earth element (REE) projects Adriano and Fotinho, and the uranium-focused Olinga project. The company is also awaiting metallurgical testwork results from its Zimbabwe Carbonatite project before deciding on further steps.

Chairman Andrew Van Der Zwan highlighted the JV’s progress as a turning point, acknowledging the external challenges faced but emphasizing the strong foundation now in place for mine development. The promising Marao assay results add a new growth dimension, complementing the Corridor projects and positioning the JV for a significant development phase.