Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

September 01, 2009 08:30 ET

Mustang Advances its Maskwa Nickel Project

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2009) - Mustang Minerals Corp., (TSX VENTURE:MUM)(FRANKFURT:NJF) today announced details of recent progress on feasibility study work at the Maskwa Nickel Project which is located near Lac du Bonnet, Manitoba. Maskwa is a planned, open pit, nickel project with target production of 10 million pounds of nickel in concentrate per annum. The Company has made significant progress towards final metallurgical testwork, geotechnical studies, a geological block model and a new mineral resource estimate. This advance will lead into the new mine design and the completion of the project feasibility study.

Minesite Exploration - Mineral Resource Development

Mustang recently completed a large program of drill core resampling. The objective of this program was to sample and assay all potentially mineralized sections of core previously not tested. These include extensions to the main mineralized zone and expansion of the lower-grade Hangingwall zone first discovered near the centre of the deposit. Assay results from this recent program have been entered to the deposit database and work by Micon International Limited to develop a block model and resource estimate is now underway. The newly completed database now contains almost 14,000 samples, compared with the database used in the previous resource model in 2007 which contained close to 10,000 samples.

The target date for completion of a revised mineral resource for Maskwa is September 2009.

In addition to the resampling of core, almost 1000 assay pulp samples retained from the 2008 drilling programs at TSL laboratories in Saskatoon were reassayed to obtain nickel values by aqua regia digestion, where the original assays were reported after total (4 acid) digestion. This standardizes the database and hence the resource model. Metallurgical testing results have been brought in line with the same nickel assay technique.

Metallurgical Testwork Update

Extensive metallurgical testwork has been completed on both the Main Zone material and the surrounding disseminated material. A detailed grade-recovery curve based on open cycle testwork has been developed and additional locked cycle testwork will be completed in the next month.

Metallurgical testwork was conducted at the laboratory of PRA Metallurgical Division of Inspectorate America Corp. (PRA) in Richmond, B.C. continuing the program which has been ongoing since 2006 under the same group.

Specific metallurgical testing on composite samples of low grade Hangingwall Zone mineralization provided encouraging nickel, copper and platinum group elements (PGE) recoveries. Testwork culminated in a 6-stage locked cycle flotation test to confirm the metal recoveries and concentrate characteristics of this low grade material which occurs proximal to the Main Zone of mineralization at Maskwa. Summary results of the test were as follows:



Maskwa Hangingwall Zone Locked Cycle Test
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Ni%(i) Cu% Co% Pt g/t Pd g/t
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Composite grade 0.28 0.09 0.02 0.06 0.17
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Concentrate grade 14.5 5.8 0.7 2.4 11.9
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Concentrate metal recoveries (%) 61 79 51 47 66
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(i)- all nickel reported based on aqua regia/ICP assay


A strong correlation was noted in recoverable nickel mineralization and elevated palladium values in the Hangingwall Zone of the deposit which lies within the conceptual pit shell used in calculating the current (2008) Proven and Probable Reserve.

Geotechnical Studies

Other feasibility study work progressed with completion of site studies to develop open pit slope design criteria and geotechnical evaluation of the areas for the tailings and plant site. Golder Associates is the consultant working on this part of the feasibility study.

Mayville Deposit Update

The Mayville deposit has also been the subject of ongoing evaluation in recent months. Mayville hosts a NI-43-101 compliant mineral resource of 21.9 million tonnes (Mt) containing 0.20%Ni and 0.48% Cu in the Indicated category, previously announced in the January 12, 2007 Technical Report by Scott Wilson Roscoe Postle Associates Inc. (RPA) and posted on Sedar. Mustang re-evaluated the resource with more stringent criteria and found the potential for a higher grade, smaller area of mineralization near surface and applicable for open pit extraction at a low to moderate strip ratio.

Based on this internal assessment, a new Mayville composite sample was prepared and metallurgical testing conducted at PRA using a modified flowsheet to recover separate nickel and copper concentrates. Although the grade of this composite was a little higher than the proposed higher grade zone, the test results are extremely encouraging. Separate copper and nickel concentrates of marketable grade and with precious metals credits (gold, silver, palladium) were produced. Results are summarized below from the latest open cycle test. Work will continue to a scoping study for the project which is seen as auxiliary to the larger Maskwa project.



Mayville Metallurgical Test Results
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Product Ni% Cu% Au g/t Ag g/t Pd g/t
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Feed composite 0.36 0.96 0.09 3.50 0.23
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Copper concentrate 0.8 33.2 1.5 51.5 5.2
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Recovery to copper concentrate (%) 6 89 41 38 58
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Nickel concentrate 9.9 3.8 0.8 22.9 3.2
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Recovery to nickel concentrate (%) 47 7 15 11 24
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The Mayville deposit remains open at depth. A selection of the most encouraging drill hole intervals, some of which are both within and/or extend below the potential open pit shell, include the following identified in the RPA Report.



Selected Mayville Drill Intervals
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Hole No. From (m) To (m) Interval (m) True Cu% Ni%
thickness (m)
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MAY05-01 6.10 46.63 40.53 37.07 0.83 0.28
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MAY05-02 13.11 91.44 78.33 41.98 0.72 0.29
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MAY05-03 86.56 131.67 45.11 32.93 0.81 0.26
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MAY05-08 191.11 222.50 31.39 26.96 0.63 0.31
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MAY05-16 331.32 406.05 74.73 42.62 0.75 0.24
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MAY06-38 45.48 93.57 48.09 40.55 0.73 0.22
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MAY06-39 146.30 200.25 53.95 45.53 0.70 0.19
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East Bull Lake Drilling

Mustang is in a joint venture with Western Areas NL on the East Bull Lake project located west of Sudbury Ontario. Two drill holes were recently completed at East Bull - one at the Novick Lake area and one at the Sables area both testing EM conductors identified in earlier work. No significant mineralization was identified although blebby chalcopyrite was identified in the drill core from Novick Lake. Further assessment of the geological and geophysical potential is underway. The East Bull Lake intrusion is a 20km long layered mafic to ultramafic intrusion with significant Ni-Cu-PGM mineralized potential.

Ian Ward P. Eng., and John Smolen P. Geo. are the Qualified Persons for Mustang Minerals Corp. for purposes of National Instrument 43-101.

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 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 period ended December 31, 2007 and thereafter and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 81,228,239

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