Mustang Resources will undertake a “detailed assessment” of disappointing ruby auction results that caused its share price to plummet by two-thirds last week.

The assessment would play a key role in determining “future operational and marketing strategies”, Mustang (ASX:MUS) told investors on Tuesday.

Last month’s ruby auction in Mauritius netted a disappointing $713,456 when only 7 per cent (or 29,463 carats) of the total 405,000 carats on offer were sold.

The review would take into account feedback received from potential buyers at the auction.

Mustang’s managing director Christiaan Jordaan previously told the market the miner needed to offer increased quantities of rubies in each category.

“This is because buyers and their jewellery customers need to be certain that there are enough similar rubies available to enable them to produce the required number of any particular jewellery item,” Mr Jordaan said.

Mustang's share price over the past month. Source
Mustang’s share price over the past month. Source

Mustang expected to update investors on the review within two weeks.

Mustang’s shares recovered slightly this week, gaining 13 per cent on Monday after announcing a maiden resource at a Mozambique graphite project known as “Caula”.

The shares were trading 7 per cent lower on Tusday at 4.2c, capitalising the miner at about $8.2 million.