Drill Program Resumes at Mayville Property
TORONTO, ONTARIO -- (Marketwire) -- 06/02/11 -- Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF)('Mustang') today announced that exploration drilling for platinum group metals is resuming at its Mayville Property in southeast Manitoba. The Company also updated other exploration information from the project including results from May11-28 which was drilled 100 meters to the west of the discovery drill section which returned highly anomalous PGE results and plans for a concerted drill out of the PGM Zone.
Drill Update
Drilling has commenced on the Road Anomaly which is located to the east of the PGM discovery area. This target was identified during a recent survey and consists of a prominent (480m x 240 m) induced polarization (IP) and magnetic anomaly. This anomaly is also featured on the VTEM airborne survey flown at Mayville in 2005. The target is situated 620 meters northeast of the PGM discovery hole and 1700 meters east of the Mayville M2 Cu Ni Deposit. A series of holes will be completed to test and explain the anomaly. The Road Anomaly is readily accessible by road even with spring break up conditions.
Mayville Project Exploration
Mustang is planning a systematic drill out of the PGM Zone target area as well as related exploration at the Mayville Property during the remainder of 2011. In addition to drilling exploration will include ground and airbone geophysics, litho-geochemical and bio-geochemical surveys and further geological mapping of areas of interest. Further details will be forthcoming from the Company as plans are implemented. Carey Galeschuk P. Geo. will be the supervising site geologist.
Drill results were also received for drill hole MAY11-28 which was drilled 100 meters west of MAY11-07 (see Mustang Minerals news release March 22nd, 2011). MAY11-28 intersected several zones of anomalous mineralization with values of 1.9 g/t pgm Au, 0.29% nickel and 0.35% copper ( over 1.2m ) with 1.4 g/t pgm Au over 1.5m. The geology of MAY11-28 consisted of an alternating package of ultramafic, peridotite and gabbro. Elevated PGM values were noted throughout the rock units. Mineralization is different is this hole compared with the others in the PGM Zone as it contained elevated copper and nickel values. Anomalous intervals of PGM included 3.0m at 0.7 g/t from 57.0m; 5.9m at 0.6 g/t pgm from 160.6m and 4.2m at 0.9 g/t from 180.8m.
Makwa Feasibility Study
The feasibility study for Makwa is proceeding with contracts awarded for feasibility level metallurgical testing, pit slope design, tailings and waste management design and Environmental Impact Assessment and Permitting. The mill components purchased from Bouchard Hebert are being dismantled and moved off site by third party contractors.
QAQC
All core samples were sent to Accurassay Laboratories in Thunder Bay, Ontario. Analysis was completed for nickel, copper, cobalt and silver using an Aqua Regia digestion followed by AAS/ICP finish. For gold, platinum and palladium, fire assay of 30g aliquots followed by combination fire assay and AAS finish was employed. Drill core is logged and split on site at the Makwa site with half the core retained and stored. Mustang conducts an ongoing QA/QC program on drill core including inserting blanks, duplicates and standards at regular intervals with all sample submissions to the laboratory.
Performance Options
The Company also announced that it is issuing a total of 920,000 incentive stock options to employees of the Company pursuant to the stock option plan of the Company. The term of the options is for 5 years. The exercise price of the options are a minimum of $0.30 per share and are subject to regulatory approval.
About Mustang Minerals
In addition to conducting exploration at the Mayville Property for platinum group metals Mustang Minerals has two open pit mineable deposits located in Southeast Manitoba. Both have excellent infrastructure.
1. The Makwa Project has a NI 43-101 reserve estimate completed in Feb. 2010 by Micon International Limited outlined 9.855 million tonnes in the Probable category containing 0.541% nickel, 0.113% copper and 0.433 g/t PGM. Work on a feasibility study is ongoing and the permitting process is beginning with operations planned to start in late 2012.
2. The Mayville Project's M2 Deposit is located approximately 35 km by road from Makwa and has a NI 43-101 Indicated Resource of 9.227 million tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t palladium.
Western Areas NL, an Australian based nickel producer owns 19.9% of the common shares of Mustang.
Carey Galeschuk P.Geo is the National Instrument 43-101 Qualified Person for Mustang Minerals Corp.
We seek safe harbour.
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, 'forward-looking statements'). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Shares Outstanding: 157,228,233
To find out more about Mustang Minerals Corp. (TSX VENTURE: MUM) visit our website at www.mustangminerals.com.
Contacts:
Mustang Minerals Corp.
David Black
Investor Relations
416-955-4773
info@mustangminerals.com
www.mustangminerals.com