Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

October 26, 2009 08:00 ET

Mustang Expands the Maskwa Open Pit Resource to Exceed 56,000 Tonnes Contained Nickel

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2009) - The Board of Directors of Mustang Minerals Corp., (TSX VENTURE:MUM)(FRANKFURT:NJF) today announced the results of an updated open pit resource estimate for the Maskwa Nickel Deposit.

The results represent a significant upgrade to contained metal within the optimized open pit portion of the deposit. The Company is proceeding with the completion of a revised mine design to estimate a new proven and probable reserve based on the updated resource.

The updated resource is estimated to contain 56,510 tonnes of nickel metal in the indicated category and 4,170 tonnes of nickel metal in the inferred category. This updated mineral resource marks an increase of 3,830 tonnes of nickel in the indicated category and an increase of 3,720 tonnes of contained nickel in the inferred category, from the comparable results which were established in the Prefeasibility Study and presented in the NI 43-101 Technical Report ¹ dated May 2008.

The October 14, 2009 resource estimate, prepared by Micon International Limited (Micon), presents mineral resources contained within an optimized open pit generated using the Whittle software package, and is summarized in Table 1. The previously reported Open Pit portion of the Maskwa resource, estimated as part of the May 2008 Prefeasibility Study, is shown in Table 2 for comparison:

Table 1
Mineral Resource Estimate as at October 14, 2009
Prepared by Micon International Limited

Resource
Category
TonnesNi
(%)
Cu
(%)
Co
(%)
Pt (g/t)Pd (g/t)Contained
Ni tonnes
Indicated10,275,0000.550.110.010.100.3556,510
Inferred 1,669,0000.250.070.010.050.154,170

Refer to footnotes 2-7 for explanations and criteria

Table 2
Open Pit portion of Mineral Resource as at May 2008

Resource
Category
TonnesNi
(%)
Cu
(%)
Co
(%)
Pt (g/t)Pd (g/t)Contained
Ni tonnes
Measured/Indicated8,232,0000.640.130.020.110.3852,680
Inferred 107,0000.420.140.020.040.12450

The Indicated mineralization comprises a higher grade core grading over 1% nickel and an adjacent flanking zone of disseminated, lower grade mineralization, both of which have excellent continuity and together average 0.55% nickel within the open pit shell. The resource is estimated using a cut-off net smelter return value of CDN$ 16.34 per tonne. A total of 150,000 ounces of platinum group metals are also contained in the indicated resource, plus payable copper and cobalt credits. Metal payability has been based on indicative terms received from a smelter as part of the prefeasibility study.

Core sampling and assaying during 2009 focussed on the recently discovered hanging wall zone which occurs to the south of, and parallel to, the main mineralized zone. Metallurgical testing with representative samples of this mineralization has shown that metal recovery to a concentrate is excellent, thereby allowing the use of the stated cut-off value to this lower grade material. Micon applied the category of inferred to this mineralization, a total of 1.67Mt containing 0.25% Ni, and Mustang is planning work to upgrade a large portion of the total to the indicated resource category.

Metal prices used to calculate the new resource were the same as for the May 2008 prefeasibility study and included nickel at $US 8 per pound and copper at US$ 2.20 per pound. Updated parameters incorporated into the new resource model included additional drill hole and sampling assay results compiled over the last two years, standardization of assay procedures, and application of a metal grade recovery curve ( based on completed metallurgical test work ) to more accurately estimate the recovery of metal by grade range in the deposit.

The Company is moving ahead with an updated reserve calculation for the Maskwa Project based on the enhanced open pit resource and an updated mine design (currently in process) and will be reported as soon as possible.

Ian Ward P.Eng. is the Qualified Person for Mustang Minerals Corp. for purposes of National Instrument 43-101.

1 The resource reported from the Prefeasibility Study of the Maskwa project as disclosed in the May 2008 Technical Report is referred to by Wardrop as "Wardrop estimate based on Micon pit".

2 Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

3 The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured category.

4 The definitions for resource categories used are consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards as of August, 2000 which is incorporated by reference in Ni 43-101.

5 The metal prices used in this estimate are nickel –US$8.00/lb, copper-US$2.20/lb, cobalt-US$20.00/lb, platinum-US$1500/oz, palladium- US$350/oz. The US: Canadian dollar exchange rate used is 0.90:1.00. A Net smelter Return cut-off value of CDN$ 16.34/tonne was applied to represent projected total project operating costs based on the recent prefeasibility study estimate. Metal recovery values were determined for a range of each metal feed grade by recently completed metallurgical testing on composites of Maskwa mineralization. SG values were determined from a large selection of Maskwa core samples. Pit slopes were based on values recommended by Golder Associates after geotechnical site studies. Tonnages have been rounded to reflect the level of accuracy of the estimate.

6 Further to the disclosure of sampling and assaying procedures in the May 2008 Technical Report, almost entirely all of the new samples were prepared by Maskwa staff and assayed by Accurassay Laboratories in Thunder Bay, Ontario. Nickel, copper and cobalt were determined by aqua regia digestion and atomic absorption methods. Platinum and palladium were determined by fire assay procedure with AA finish. A series of blanks, duplicates and standards were submitted by Mustang as standard QA/QC procedure and the results applied to the verification of the block model.

7 Micon imported the drill database after data verification into "Surpac" modelling software to create the geological block model. The block model was constrained by wireframes drawn to enclose mineralization with nickel content of greater than or equal to 0.16%Ni, this being the value calculated to cover potentially economic mineralization excluding the mining cost, based on the parameters in 5.

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 most recent financial period 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 "proven and probable reserves". 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 and be economically feasible.

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