MRG Metals Confirms Strong THM Grades at Fotinho Project in Mozambique

MRG Metals Extends Heavy Mineral Footprint Across Mozambique's Adriano–Fotinho Corridor

MRG Metals Limited (ASX: MRQ) has delivered its first laboratory-confirmed Total Heavy Mineral (THM) assay results from the Fotinho Rare Earth Project in Mozambique, and the MRG Metals Fotinho heavy mineral assay results in Mozambique are turning heads. With 15 of 32 auger holes returning grades above 3% THM and a standout intercept of 9.49% THM over 1.0m, these results meaningfully extend the company's growing heavy mineral inventory across a combined 396.42 square kilometre Adriano–Fotinho licence area.

Furthermore, these results don't sit in isolation — they build directly on strong prior results from the adjacent Adriano project, where confirmed mineralogy showed 32.2% Total Valuable Heavy Mineral (VHM) content in composite Heavy Mineral Concentrate (HMC) samples. Together, the two datasets are beginning to outline what management is describing as a potential district-scale rare earth opportunity.

What Do the Fotinho Drilling Results Show?

The initial programme comprised 33 auger holes across alluvial targets clustered around the rivers and streams within Fotinho licence 11000. Of these, one hole (FRC25007) struck hard rock at surface and returned no sample, leaving 32 holes with analytical results across 55 individual samples.

Headline Assay Results

Programme-Wide Statistics

Key programme-wide statistics from the drilling campaign include:

• Weighted average THM grade (no cut-off): 3.23% across all 32 holes
• Average thickness: 1.58m
• 15 of 32 holes returned >3% THM over total drilled depth
• Hole FHA25002 demonstrated mineralisation persisting to 4.3m depth, confirming grades are not confined to the surface layer

It is worth noting that many holes were stopped at the water table or at drilling refusal through coarser alluvial material. Consequently, true depths of mineralisation in several locations remain open below the tested intervals.

Placing Fotinho in Context: How Does It Compare to Adriano?

The MRG Metals Fotinho heavy mineral assay results in Mozambique take on greater significance when compared against the already-encouraging results from the adjacent Adriano project. Adriano's alluvial drilling programme — encompassing 46 auger holes across 5 target areas — established the baseline against which Fotinho is now being measured.

Adriano vs. Fotinho: Key Metrics Compared

The mineralogy work completed on Adriano's HMC provides a valuable lens for interpreting the Fotinho results. In addition, the HMC from that adjacent project confirmed significant concentrations of commercially valuable minerals:

• Monazite: 1.9% (primary REE-bearing mineral)
• Rutile: 2.3% (titanium dioxide feedstock)
• Zircon: 1.90% (zirconium source, ceramic and nuclear applications)
• Leucoxene: 1.8% (secondary titanium mineral)
• Ilmenite: 24.4% (dominant titanium ore mineral)
• Total VHM: 32.2% of HMC

Equivalent mineralogy investigations on Fotinho HMC are now underway.

Understanding Total Heavy Mineral: What Does THM Mean for Investors?

Total Heavy Mineral (THM) represents the proportion of heavy minerals — those with a specific gravity above 2.95 — in a bulk sediment sample, expressed as a percentage. For heavy mineral sands operations, THM serves as the foundational metric for assessing economic potential.

The economic value of heavy mineral deposits depends on three critical factors:

1. THM Grade Levels
Higher percentages indicate more mineral-rich sediment. Many commercial heavy mineral sands operations globally operate on THM grades ranging from roughly 1% to 5%, though grades and deposit geometries vary considerably.

2. Mineral Composition
Not all heavy minerals carry equal commercial value. The "valuable heavy minerals" (VHM) represent the economically important subset, including monazite (rare earth carrier), rutile, zircon, leucoxene, and ilmenite.

3. Processing Characteristics
The ability to separate and concentrate these minerals determines ultimate project viability, assessed through detailed mineralogical and metallurgical studies.

MRG's weighted average of 3.23% at Fotinho and 4.50% at Adriano — both at this early target-generation stage — represent meaningful data points. Moreover, the confirmed presence of monazite in the Adriano HMC makes the mineralogy particularly relevant for understanding rare earth potential across both licences.

Key Technical Terms

• THM (Total Heavy Mineral): Percentage of heavy minerals (SG >2.95) in bulk sediment
• VHM (Valuable Heavy Mineral): Commercially important THM subset
• HMC (Heavy Mineral Concentrate): Concentrated heavy mineral sample for detailed analysis
• Monazite: Phosphate mineral hosting rare earth elements and thorium
• Alluvial deposit: Mineral accumulation formed by river transport and deposition

Management Commentary on Results

"Our team has moved quickly to build on the strong results delivered last month, and we are now seeing real momentum across the Adriano–Fotinho corridor. With additional drilling completed, further samples heading to the laboratory and fieldwork expanding into new parts of the licence, we are steadily advancing our understanding of what may become a district-scale rare earth opportunity. As assays begin to flow, we remain well-positioned to make informed investment decisions and continue unlocking value across this emerging asset."

— Andrew Van Der Zwan, Chairman, MRG Metals

"The alluvial terrain we are exploring here sheds eastward from the granite/gneiss basement lithologies. We are encouraged by the expanding inventory of alluvial heavy mineral-carrying gravels being identified in both Adriano project and the abutting Fotinho project. Having already enjoyed substantial exploration success at our Corridor HMS project, MRG's low-cost stream sediment and auger exploration techniques are once again proving to be great value for money in terms of use-of-funds for our shareholders."

— Chris Gregory, Non-Executive Director, MRG Metals

The Geological Framework

The Fotinho and Adriano licences sit within terrain where alluvial sediments drain eastward from granite and high-grade metamorphic rocks of the Mozambique Metamorphic Province. These crystalline basement rocks represent the primary source of rare earth and titanium-bearing heavy minerals that accumulate in river and stream sediments.

Bucket auger drilling — using a Johnson T-type 75mm tool — targets these shallow alluvial accumulations. The sub-horizontal nature of alluvial deposits makes vertical auger drilling a practical and cost-effective method for this exploration stage. Samples are collected at 0.5m intervals, composited to 1m, and dispatched to MAK Analytical in South Africa for analysis.

The current programme is explicitly described as target generation drilling. Several holes did not reach the base of the alluvial profile, and the dataset does not yet provide information on the full width or strike extent of mineralised deposits.

Forward Work Programme

MRG has outlined a systematic sequence of activities designed to progressively advance understanding of both the Fotinho and Adriano alluvial systems.

Immediate Priorities

1. Mineralogical investigation of Fotinho HMC — to confirm VHM content and rare earth potential equivalent to, or better than, Adriano
2. More detailed lithology-based mineralogy from Adriano — to refine understanding of mineral distribution with depth
3. Expanded auger drilling — additional holes covering untested river and stream systems within both licences

Medium-Term Activities

Investment Considerations

Several factors position the Adriano–Fotinho corridor as an emerging opportunity for investor attention.

Scale of Opportunity

The combined tenure spans 396.42 square kilometres — a substantial footprint for a project that has only commenced systematic drilling. Current auger programmes represent early-stage target generation; the full extent of alluvial mineralisation across this area remains untested.

Consistent Grade Distribution and Confirmed Mineralogy

The Fotinho programme weighted average of 3.23% THM and Adriano's 4.50% THM — both measured with no cut-offs applied — suggest mineralisation is broadly distributed rather than confined to isolated anomalies. High-grade intercepts up to 9.49% THM indicate localised enrichment zones exist.

HMC from Adriano confirmed 32.2% VHM content, including monazite as the rare earth-bearing mineral. This represents the critical linkage between raw THM grades and rare earth economic potential. The MRG Metals Fotinho heavy mineral assay results in Mozambique will gain additional context once equivalent mineralogy work is completed.

Capital-Efficient Exploration and Depth Potential

Hand auger drilling and stream sediment sampling represent highly cost-effective approaches to early-stage target generation. Management has noted this methodology — previously used successfully at MRG's Corridor HMS project — delivers strong value-for-money outcomes for shareholders.

However, with multiple holes stopping at the water table or drilling refusal through coarser gravels, the THM inventory at depth remains untested. Sonic drilling is planned to address this limitation, meaning significant upside potential remains open below current tested intervals.

Why Investors Should Monitor MRG Metals

The MRG Metals Fotinho heavy mineral assay results in Mozambique represent a meaningful step in systematically defining heavy mineral and rare earth potential across a large, underexplored licence package. The company has not yet reached resource estimation stage — this remains exploration — but the building blocks are being assembled methodically.

The convergence of consistent THM grades across both Adriano and Fotinho, combined with confirmed valuable mineralogy from the adjacent licence, provides a solid foundation for the next phase of work. Upcoming catalysts — particularly Fotinho mineralogy results and infill drilling outcomes — will determine whether the Adriano–Fotinho corridor can support a Mineral Resource Estimate.

Key Takeaway: MRG Metals has delivered first Fotinho assay results with a weighted average of 3.23% THM across 32 holes — including a standout 9.49% THM peak grade — extending the company's alluvial heavy mineral footprint across a combined 396.42 sq km corridor. With confirmed VHM mineralogy from adjacent Adriano and a systematic work programme now underway, the near-term flow of mineralogy results and infill drilling data represents the key developments for investors to monitor.

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