My apologies to the group. This post is NOT about global warming, birds, politics, relationships, rights of man, extinct species, CO2, energy, economy, or any of the other popular hot button topics we have come to know and love on this thread. It is, and I know this is going to offend some, about a small nickel explorer in Ontario and Manitoba. Once again I apologize and this is a one time announcement. No comment or reply is necessary or expected.
Mustang Outlines 2nd Resource in Manitoba
Resource Estimate at Mayville M2 Zone
94 Million Pounds Nickel and 232 Million Pounds Copper
TORONTO, ONTARIO -- Feb. 19, 2007) - Mustang Minerals Corp. MUM/TSXV, today announced the results of a mineral resource estimate from the M2 Zone of the Mayville Property. The resource estimate was prepared by Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA") and is dated January 15, 2007. The report was co-authorized by David Ross, M.Sc., P.Geo. and Luke Evans, M.Sc., P.Eng. In the report Scott Wilson RPA noted that the M2 Zone resource is an open pit resource that has an average true width in the order of 20 meters. The M2 Zone is located approximately 35 km by road from Mustang's Maskwa Nickel Project where Mustang recently announced a positive Preliminary Economic Analysis for an open pit nickel operation.
Mayville Property M2 Zone Mineral Resource
---------------------------------------------------------------------------
Tonnage Nickel Copper Nickel Copper
---------------------------------------------------------------------------
Tonnes (%) (%) lbs lbs
---------------------------------------------------------------------------
Indicated 21,947,000 0.20 0.48 94,261,000 232,023,000
---------------------------------------------------------------------------
Inferred 1,851,000 0.20 0.43 8,109,000 17,584,000
---------------------------------------------------------------------------
Note: Mineral Resources which are not Mineral Reserves have not
demonstrated economic viability
Indicated mineral resources for the M2 Zone at Mayville total 21.9 million tonnes averaging 0.20% nickel and 0.48% copper while the Inferred mineral resources for the M2 Zone total 1.9 million tonnes averaging 0.20% nickel and 0.43% copper at a Net Smelter Return (NSR) cut-off estimate of C$15/tonne. The NSR cut-off estimate is based on a price of US$6.00 per pound of nickel and US$1.50 per pound of copper.
The bottom limit of the resource estimate was constrained using a pit shell generated from Whittle Four-X software. The resource was based on drill hole data up to MAY06-74, which was completed on March 24, 2006.
Notes relating to mineral resources:
1. CIM definitions were followed for mineral resources.
2. A preliminary open pit shell using Whittle Four-X was used to constrain the open pit resources.
3. An open pit mineralization envelope was constructed based on a $15/tonne NSR cut-off.
4. A minimum horizontal thickness of approximately 2 m and a 3.00 t/m3 mineralization tonnage factor were used.
5. Blocks are 10 m by 10 m by 10 m. Inverse distance squared interpolation was used for nickel and copper.
6. Search radii of 100 m along strike and down dip, and 10 m across strike were used to interpolate grades.
7. Classification was done based on drill hole spacing and apparent continuity of the mineralization.
8. Gemcom Software International Inc. Resource Evaluation Edition Version GEMS 6.02 was used.
Mustang Strategy and Analysis
Maskwa Property
Mustang Minerals Corp. is focused on the development of the Maskwa Nickel Project located approximately 35 km to the southeast of the Mayville Property. The conceptual model for the development of Maskwa in the recently announced Preliminary Economic Assessment (Micon International Ltd. dated January 2007, see press release dated January 23rd 2007) included the construction of a concentrating plant to produce a metal (primarily nickel) concentrate. Mustang's strategy in the Bird River Project Area also includes developing additional sources of feed within trucking distance of the Maskwa concentrating plant.
Mayville M2 Property
With a significant bulk tonnage open pit resource having been identified at M2 as a first step, Mustang will seek to further enhance the mineral potential of the Mayville Property. Various alternatives under currently being examined include:
1. Increasing the size of the M2 Zone resource through additional drilling as the resource is open along strike and to depth.
2. Investigating the potential to upgrade the M2 Resource by such applications as ore sorting or dense media separation. An initial ore sorting test has been performed at the University of British Columbia indicating that follow up work is warranted.
3. Examining selective ore extraction operations in conjunction with the planned development of Mustang's Maskwa Nickel Deposit.
4. Using detailed ground geophysics to investigate the potential for higher grade pockets of mineralization in the vicinity of the M2 Zone resource.
In order to generate prospective exploration targets, Mustang has acquired a large property position in the Bird River Greenstone Belt in which both Maskwa and Mayville are located. Mustang is currently conducting resource definition and exploration drilling at the Maskwa Property.
Among the recommendations made by Scott Wilson RPA were additional explorations on the property to upgrade the Inferred mineral resources to Indicated and to drill elsewhere on the property to discover new resources. Scott Wilson RPA concluded that the management and execution of exploration work, including drilling, sampling and database management, meets industry best practices and has been successful.
Mineral Processing and Metallurgical Testing
The potential of the M2 Zone resource is enhanced by the positive preliminary metallurgical testing completed to date. Preliminary flotation testing announced February 16, 2006 was completed by FR Wright & Associates Consulting on a composite sample from the Mayville Deposit. The most promising procedure consisted of differential flotation by first producing a copper concentrate, followed by production of a nickel-copper concentrate, and finally scavenging of the nickel primarily associated with pyrrhotite. The open cycle recoveries to the rougher and scavenger concentrates were approximately 90-92% for nickel and 95% to 97% for copper. The work also showed that a high grade copper concentrate containing 30%-33% copper could be achieved in open cycle tests. Locked cycle flotation tests will be performed to determine overall circuit recoveries and grades.
Sampling Method and Approach/Quality Control/ Quality Assurance
The M2 mineral resource estimate is supported by 72 drill holes totaling 15,957 meters in length averaging 50 meters apart. Scott Wilson RPA reviewed the sample preparation and analysis procedures used by Laboratoire Expert and found them appropriate for the Mayville mineralization and the results adequate for making a mineral resource estimate. Mustang's assay quality control protocols and results were reviewed by Analytical Solutions Ltd. (ASL) of Toronto. ASL concluded that the Laboratoire Expert base metal assays are reliable. Scott Wilson RPA independently analyzed a total of six samples and confirmed the presence of nickel and copper in the samples.
A complete description of the QA/QC protocol adhered to by Mustang is contained in the press release dated July 5, 2005. The Technical Report on the Mineral Resource Estimate for the M2 Zone, Mayville Property Manitoba Canada, will be posted on the Mustang Minerals Corp. site at www.sedar.com.
Mayville Property
The Mayville property is located in the Archean Bird River Greenstone Belt at the western edge of the exposed Superior Province. Manitoba Hydro power lines run through the Mayville area and the property is accessible by an all-season road. The Bird River Greenstone Belt can be described as two sub-belts, in which the northern branch hosts the Mayville Intrusion, which in turn hosts the nickel-copper mineralization and mineral resource of M2. Exploration activities can be completed on a year round basis, and ongoing exploration is underway to locate additional resources at the Mayville site. Scott Wilson RPA concluded that Mayville is a magmatic nickel-copper system.
Ernest J. Marcotte, P.Eng. (ON) is the qualified Person for Mustang and has reviewed the contents of this press release.
43-101 Resource Definitions Used
The CIM classification of an Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from location such as outcrops, trenches, pits, working and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. An Indicated Mineral Resource estimate is of sufficient quality to support a Preliminary Feasibility Study which can serve as the basis for major development decisions. An Inferred Mineral Resource has a lower level of confidence than an Indicated Mineral Resource for which quantity and grade or quality, based on geological evidence can be reasonably assumed.
To find out more about Mustang Minerals Corp. (TSX-V: MUM), visit our website at www.mustangminerals.com.
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 risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and 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 nine month period ended September 30, 2006 and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
This news release uses the terms "Inferred resources", "Indicated resources", "Measured resources", and "mineral resources". The Company advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosures for Mineral Projects"), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility of pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under National Instrument 43-101. Investors are cautioned not to assume that part or all of an Inferred resource exists, or is economically or legally mineable.
Shares Outstanding: 62,628,845
****************************************** |
