Australian mining company Mustang Resources has made a “spectacular discovery of high quality graphite,” at the Caula project, in the Mozambican province of Cabo Delgado, the company said in a market filing.

Managing director Christian Jordaan, is quoted in the statement as saying that the graphite discovery will allow the company to produce a high quality product at a relatively low price, increasing marketing margins and protecting the business from price volatility.

Five test holes made by Mustang Resources found graphite concentrations of up to 26%, with an average of 15.9% from 10 metres to 65.68 metres deep.

The samples from the tests will be sent to a laboratory in Perth, Australia, in order to assess their metallurgical characteristics.

Mustang Resources, a company listed on the Australian Stock Exchange, is also involved in prospecting rubies in Cabo Delgado at the Montepuez Ruby Project. (macauhub)