Mustang Minerals Corp.

Mustang Minerals Corp.

January 12, 2006 08:30 ET

Mustang Minerals Corp.: Drilling Expands M2 Zone 2006 Exploration and Development Program Announced

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2006) - Mustang Minerals Corp. (TSX VENTURE:MUM) is pleased to announce a successful start to the 2005/06 drill campaign. Initial drill results from drill holes completed in December 2005 have confirmed the continuation of copper-nickel mineralization to the western limit of the M2 Zone. Drilling has now resumed and a second drill is currently being mobilized to the project. An active exploration and project development program for the Maskwa/Mayville Project is now underway and is focused on adding additional resources and making a positive preliminary economic assessment of the project in 2006. In addition, exploration drilling will continue in the project area to evaluate the potential for additional discoveries.

Results of Dec/05 M2 Zone Drilling

Recent drill results from 7 holes completed at the M2 Zone have successfully extended the zone a distance of 800 meters from previous drilling completed by Mustang in mid-2005. The M2 Zone coincides with a 1.5 km long VTEM geophysical airborne conductor and is open along strike and to depth. Five of the 7 holes drilled intersected bulk tonnage grade copper-nickel-pgm-cobalt mineralization. A link to a long section showing drill hole locations is posted at ( see M2 Long Section link on lower right of the home page )

Significant results include:
HOLE Intersection Width Copper Nickel PGM Cobalt
(meters) (meters) (%) (%) (ppb) (%)
May-31 174.4-182.5 8.10 0.51 0.20 339 0.01
May-32 142.3-150.0 7.70 0.39 0.22 291 0.02
May-33 23.5-55.5 32.0 0.47 0.21 257 0.02
May-34 120.7-139.3 18.6 0.68 0.20 216 0.02
May-37 99.6-117.4 17.8 0.60 0.28 342 0.02

Secured, one half sawed drill core was sent to Laboratoire Expert in Rouyn-Noranda, Quebec for analytical work. Mineralized drill core are analyzed for nickel, copper and cobalt by total digestion followed by atomic absorption analysis with concentrations reported as a percent. Gold, platinum and palladium concentrations are determined by fire assay with an ICP-MS finish. Mustang's QA-QC program also includes the insertion of commercial standards, blanks and duplicates with each sample batch. Check samples along with standard and blanks are routinely sent to other commercial laboratories for verification.

The M4 conductor, previously drilled in the 1980's, was drilled in three holes by Mustang in December/05 and failed to intersect significant mineralization of interest.

Resource Drilling at M2-Winter 2006

The winter drilling program at the M2 Zone will be designed to intersect the zone along its 1.5 kilometers strike length. A minimum of two holes will be drilled every 100 meters and will test the zone to a depth of approximately 150 meters. An estimated 20 holes will be required to complete this initial program and will enable the Company to more accurately evaluate the overall potential for bulk tonnage resources at the M2 Zone. Following successful completion of this phase, specific areas of the M2 Zone will be targeted for infill drilling towards the goal of outlining a bulk tonnage open pit resource.

Airborne Target Drilling-Winter 2006

In order to assess the overall mineral potential of the project area reconnaissance drilling across the north arm of the belt is planned. Initial drilling will focus on the VTEM airborne geophysical targets identified by the heliborne survey flown in 2005. Approximately 16 holes, testing 8 geophysical conductors, are planned. None of the airborne conductors are known to have been drill tested in the past. New bulk tonnage discoveries such as the Maskwa Deposit or the M2 Zone are the exploration target/model.

Program Development - Maskwa/Mayville Project

Within the project area, the Maskwa Nickel Deposit and the copper-nickel mineralization of the M2 Zone have been Mustangs focus of exploration. The Maskwa Nickel Deposit currently contains a 6.0 million tonne open pit and underground resource @ 0.74% nickel and 0.15% copper which is classified as Indicated. The resource estimate was completed by RPA on February 18, 2005 and is in accordance with National Instrument 43-101. It is located on the south limb of the Bird River Greenstone Belt. The M2 Zone of the Mayville Property is located on the north limb of the belt approximately 35 km to the north. It is a gabbro hosted copper-nickel bulk tonnage zone coinciding with a 1.5 km long airborne VTEM conductor.

Initial priorities of the program are resource definition at the M2 Zone, metallurgical studies at Maskwa and M2 and scoping of potential synergies between ore from the Maskwa Deposit and the M2 Zone. Currently, initial metallurgical studies are pending from drill core samples of the M2 Zone. The studies will test recovery rates for copper-nickel and will provide a preliminary estimate of concentrate grades.

The Bird River Project is located approximately 150 kms northeast of Winnipeg, Manitoba and is located close to excellent mining infrastructure.

Mustang also has the exploration projects in Ontario including the East Bull Lake and River Valley Projects near Sudbury and its Bannockburn Project near Timmins Ontario. The Company recently raised $3 million in exploration funding for the projects in 2006.

Ken Lapierre P.Geo (ON), Mustang's VP of Exploration, is the Qualified Person (QP) for National Instrument 43-101 and has reviewed the contents of this news release.

To find out more about Mustang Minerals Corp (TSX-V: MUM), visit our website at

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. . This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.

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