Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

May 05, 2011 06:00 ET

Mustang Drills 9.1 Meters of 3.9 g/t Platinum-Palladium Strike Length of New PGM Zone Now 100 Meters

TORONTO, ONTARIO--(Marketwire - May 5, 2011) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) ("Mustang") today is pleased to announce the follow up drill results pursuant to its March 22nd, 2011 discovery of new platinum-palladium mineralization at its Mayville Property, southeast Manitoba, Canada. Three additional holes (MAY11-25 to MAY11-27) were drilled at 50 meter step-outs west, east and south from the discovery hole, MAY11-07. All holes hit significant PGM mineralization and the holes have extended the strike length of the zone to 100 meters.

Significant intercepts and subintervals of mineralization of >1.0 g/t PGM are as follows:

PGM Zone - Mayville Project 2011 Drill Program
HoleFrom
(m)
To
(m)
Interval
(m)
Pt
(g/t)
Pd
(g/t)
Au+Pt+Pd
(g/t)
MAY11-2537.061.624.60.20.81.0
including assay intervals37.038.51.50.41.01.5
40.041.51.50.41.11.6
50.051.51.50.62.93.7
58.059.11.11.03.54.5
59.160.41.20.30.91.2
MAY11-2626.741.815.10.30.81.2
including assay intervals26.728.01.30.30.81.1
28.029.61.50.48.01.2
29.631.01.50.41.01.4
32.634.11.50.51.31.8
34.135.61.50.31.01.3
35.637.51.90.61.42.1
40.241.81.50.30.81.1
MAY11-2741.8116.574.70.30.71.0
including assay intervals43.344.81.50.40.71.1
60.061.61.50.41.61.1
64.666.11.50.41.01.4
95.196.71.60.40.81.2
96.798.11.40.92.43.4
98.199.71.50.41.11.5
99.7101.21.52.15.27.4
101.2102.71.51.02.73.8
102.7104.21.51.14.05.1
104.2105.81.50.61.92.6
113.4114.91.50.20.61.6

Discussion

All three drill holes intersected Pt-Pd mineralization near surface. The best mineralization was encountered in MAY11-27 where mineralization is hosted at the ultramafic and gabbro contact. MAY11-27 was drilled 50 meters to the east of the discovery holes and 25 meters to south. The highest interval in this hole was 3.9 g/t Au+Pt+Pd over 9.1 meters (96.7m – 105.8m) which included a 1.5 meter assay that returned values of 2.1 g/t Pt and 5.2 g/t Pd (99.7 – 101.2m). As well, a gold assay of 0.9 g/t Au was returned. This indicates the potential within the PGM zone for additional precious metal enrichment. Overall Mustang is very encouraged with the drilling results in the holes drilled to date at the new PGM discovery.

Preliminary Results of Geophysical Surveys

The Company, using Matrix Geotechnologies Limited, has completed an Induced Polarization (IP) and magnetic survey over the area of the drill holes and approximately one (1) kilometer to the east and west. The survey covered 33 kilometers of newly cut grid lines. As well, the survey was also completed over the eastern and western limits of the Mayville M2 Cu-Ni Deposit (located north of the new PGM Zone) to examine the potential for mineralized extensions there. A number of prominent IP trends are evident from the preliminary survey results. To the west of the PGM discovery hole, the IP shows good correlation to a historical IP survey that suggests the PGM Zone could possibly extend for 1000 meters further to the west. The recent IP survey also identified several other untested anomalies that will require drill testing. Several lines over key areas of interest were subsequently detailed with a pole-dipole survey.

Future Drilling

In addition a systematic program of drilling is being planned to expand the PGM Zone from its current 100 meter strike length. The first target planned to be drill tested is a coincident IP and magnetic anomaly situated to the east of the PGM Zone dubbed the Road Anomaly. This work is planned to begin shortly. The company plans to drill several holes in the Road Anomaly as it can be accessed from an existing all season road.

Pending Assay Results

The Company is waiting for assay results from MAY11-28 which was drilled 50 meters west of MAY11-26. Several holes targeting the western extension of the Mayville Cu-Ni M2 resource (between 100 meters and 1,000 meters step-outs) from the winter reconnaissance drill program are also pending. As well, assays for the complete PGM suite of elements for MAY11-07 are pending. In addition, chromite bearing samples from several holes in the PGM Zone have been sent for assay. Certain higher grade samples in the recent program will be assayed for rhodium.

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.

To test the reliability of the high grade PGM assays encountered in the Mayville PGM Zone, samples were sent to a second lab for recheck assays. Check assays for two of the holes into the PGM zone were sent to Activation Laboratories in Thunder Bay, Ontario. The re-assays confirmed the PGM mineralization.

About Mustang Minerals

In addition to conducting exploration at the Mayville Property for platinum group metals Mustang Minerals has two open pit deposits located in Southeast Manitoba.

  • 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.

  • 2. The Company's Mayville Project 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.

To find out more about Mustang Minerals Corp. (TSX VENTURE: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.

Shares Outstanding: 157,228,233

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