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Ruby and vanadium explorer Mustang Resources has retracted a statement after an ASX scolding.

“Following consultation with the ASX, the company hereby retracts this statement as it is a hypothetical statement about grades, production targets and forecast financial estimates which is in breach ASX Listing Rules … relating to in-ground financial valuations,” Mustang said in an ASX announcement released on Thursday.

The ruby miner had earlier told investors that a 600,000-tonne-per-year operation at its Mozambique project at a hypothetical grade of 0.4 per cent could produce around 2000 tonnes of vanadium oxide (98 per cent and 99 per cent plus purity vanadium pentoxide chemicals), which had a market value of about $US60 million ($77 million) per year.

The news propelled Mustang’s shares up 37 per cent in Thursday morning trade.

However, after market close Mustang said it was retracting the statement because it was in breach of ASX listing rules and the JORC code.

JORC refers to mining industry standards for reporting exploration results and mineral resources, defined by the Australasian Joint Ore Reserves Committee.

The shares were up 7 per cent to 3.1c on Friday morning after the company announced new drill results showing “very high graphite grades, substantial widths and a very significant proportion of large and jumbo flake sizes”.

They closed Friday at 2.6c.

MUS shares over the past six months.
MUS shares over the past six months.

Mustang decided to retract the whole announcement, which outlined the results of a strategic review of its new Caula graphite and vanadium project in Mozambique that showed the project was on track for production by the middle of next year.