MRG Metals’ Corridor Sands Project Now Fully Permitted with 2 Billion Tonnes Resource
MRG Metals secures the Corridor South mining licence, completing key permits for its massive 2-billion-tonne heavy mineral sands project, while setting ambitious production goals and expanding rare earth exploration.
- Corridor South mining licence granted, completing permitting for Corridor Sands Project
- Sinowin Lithium sets first-year production target of 130,000–160,000 tonnes
- Five-year ramp-up goal of 800,000 tonnes per annum production
- Discovery of potential alluvial rare earth deposits at Adriano
- Successful $818k capital raise with full director participation
Permitting Milestone for Corridor Sands Project
MRG Metals Limited (ASX – MRQ) marked a significant step forward in its Mozambique heavy mineral sands venture with the granting of the Corridor South mining licence by the Mozambican National Mining Institute. This approval completes the permitting framework for the fully funded Corridor Sands Project, which boasts a combined JORC-compliant resource exceeding two billion tonnes of heavy mineral sands. The licence covers key deposits including Nhacutse and Poiombo, known for their high-grade mineralisation.
Joint Venture Production Targets and Funding
The company’s joint venture partner, Sinowin Lithium, has formalised an initial production target of 130,000 to 160,000 tonnes per annum for the first year, with a longer-term ambition to ramp up to 800,000 tonnes annually within five years. Sinowin is funding 100% of development and operating costs up to 440,000 tonnes per annum of heavy mineral concentrate production, supported by an initial US$6 million commitment. While final government approval for licence transfer remains pending, Sinowin has already contributed a substantial portion of the first tranche, underscoring the JV’s momentum towards production.
Rare Earths Exploration Uncovers New Potential
Beyond heavy mineral sands, MRG Metals is advancing its rare earths exploration with promising results from the Adriano licence. Post-quarter auger drilling confirmed the presence of heavy-mineral-rich alluvial deposits, while geological mapping identified pegmatite outcrops that may represent a primary source rock. These findings support the existence of a district-scale rare earth corridor extending through the Adriano–Fotinho area. Exploration at Fotinho is set to commence shortly, with laboratory results expected early next year.
Expanding Critical Minerals Portfolio
MRG is also preparing to initiate uranium and rare earth exploration at the Olinga licence, leveraging elevated uranium/thorium ratios identified in regional surveys. This project could broaden the company’s footprint in critical minerals, complementing its heavy mineral sands and rare earth assets. Meanwhile, exploration at other Mozambican tenements such as Linhuane and Marao continues to promise long-term growth potential for the joint venture.
Financial Position and Corporate Developments
The quarter saw MRG Metals successfully complete a $818,000 capital raise through a 3-for-10 entitlement offer of listed options, with full participation from directors signaling strong internal confidence. The funds will support ongoing exploration and corporate activities, maintaining operational momentum across the company’s portfolio. Cash reserves remain healthy at $695,000, providing a runway of over three quarters based on current expenditure levels.
Bottom Line?
With permitting secured and production targets set, MRG Metals is poised to transform its Mozambique assets into a major critical minerals supplier; next steps hinge on government approvals and exploration results.
Questions in the middle?
- When will the Mozambican government finalize licence transfers to unlock full JV funding?
- How will infrastructure constraints at Chongoene Port and rail impact production ramp-up?
- What do upcoming assay results from Adriano and Fotinho mean for rare earth resource potential?
