Mustang Minerals Corp.
TSX VENTURE : MUM

Mustang Minerals Corp.

July 05, 2005 08:53 ET

Mustang Minerals Corp.: Initial Results Outline Large Nickel Copper System in Manitoba

TORONTO, ONTARIO--(CCNMatthews - July 5, 2005) - Mustang Minerals Corp. (TSX VENTURE:MUM) today announced results from the first 4 of 12 recently completed drill holes at the M2 Zone on the Mayville Property, located approximately 150 km from Winnipeg, Manitoba. Initial drill results include significant bulk tonnage grades and widths containing nickel-copper mineralization. Hole 2 intersected 33.6 meters grading 1.56% nickel-copper combined (0.50% nickel/1.06% copper) hosted within a larger mineralized envelope of 61 meters wide grading 1.15% nickel-copper combined (0.33% nickel/0.82% copper). The M2 nickel-copper discovery remains open in all directions and is coincident with a broad, east-west trending, steeply south dipping, 1.3 km long airborne Mag/VTEM conductor. The existence of narrow veins of high grade nickel and copper indicates the potential for more significant concentrations of high grade massive sulphides within the M2 Zone. Holes 1-4 reported herein are the first fence of holes drilled into M2 by Mustang.



Significant drill results from holes 1 to 4 are tabulated below:

---------------------------------------------------------------------
Intersection Width Ni Cu Ni+Cu Co Pt-Pd-Au
Hole # (meters) (meters) (%) (%) (%) (%) pbb Zone
---------------------------------------------------------------------
May-01 6.1-46.6 40.5 0.30 0.83 1.13 0.02 364 M2-
envelope
---------------------------------------------------------------------
includes 31.9-46.6 14.7 0.50 1.48 1.98 0.03 500 M2-high
grade
---------------------------------------------------------------------

---------------------------------------------------------------------
May-02 18.9-79.9 61.0 0.33 0.82 1.15 0.02 350 M2-
envelope
---------------------------------------------------------------------
includes 46.3-79.9 33.6 0.50 1.06 1.56 0.02 437 M2-high
grade
---------------------------------------------------------------------
also 31.3-31.6 0.3 1.97 0.16 2.13 0.08 339 Ni-vein
---------------------------------------------------------------------
also 55.5-57.0 1.5 0.19 3.20 3.39 0.01 140 Cu-
stringers
---------------------------------------------------------------------

---------------------------------------------------------------------
May-03 86.6-131.7 45.1 0.26 0.81 1.07 0.01 407 M2-
envelope
---------------------------------------------------------------------
includes 104.9-131.7 26.8 0.32 1.02 1.34 0.02 483 M2-high
grade
---------------------------------------------------------------------
also 104.9-105.0 0.1 0.13 20.15 20.28 0.01 1382 Cu-vein
---------------------------------------------------------------------
also 117.0-117.7 0.7 0.31 5.34 5.65 0.02 224 Cu-
stringers
---------------------------------------------------------------------

---------------------------------------------------------------------
May-04 143.9-147.6 3.7 0.15 1.26 1.41 0.01 542 Hang-
ingwall
---------------------------------------------------------------------
185.0-250.2 65.2 0.25 0.55 0.80 0.02 401 M2-
envelope
---------------------------------------------------------------------
includes 215.6-241.5 25.8 0.31 0.60 0.91 0.02 427 M2-high
grade
---------------------------------------------------------------------
also 214.5-214.8 0.3 2.13 0.29 2.42 0.09 96 Ni-vein
---------------------------------------------------------------------
also 215.5-215.7 0.2 3.23 0.27 3.50 0.15 235 Ni-vein
---------------------------------------------------------------------


All widths reported above are apparent widths and do not represent true thickness. Ni equals nickel, Cu equals copper, Co equals cobalt, Au equals gold, Pt equals platinum, Pd equals palladium, % equals percentage, ppb equals parts/billion.

To date, 12 NQ sized drill holes totaling 2,079 meters have been completed on three section lines with four holes/section line. All 12 holes have intersected wide intervals (minimum 30 meters true thickness) of sulphide mineralization across a strike length of approximately 100 meters (of the 1.3 km long VTEM conductor) and to a maximum vertical depth of approximately 250 meters.

"We have been encouraged by the widths of the mineralization at M2 and our initial results show the presence of a large nickel-copper-pgm-cobalt system with excellent potential," said Robin Dunbar President of Mustang. "Mustang is extremely well positioned to expand its resource base and develop the area potential of the Bird River Greenstone Belt. Our other high priority drill targets within the belt take on added significance on the basis of these positive initial M2 Zone results" he added.

Mustang presently controls approximately 22 km of strike along the northern arm of the Bird River Greenstone Belt (BRGB), where the 12 km long Mayville intrusion and the M2 nickel-copper discovery are located. The Mayville intrusion is a layered mafic to ultramafic, heterolithic breccia intrusive complex. M2 Zone mineralization is associated within fine to coarse grained and net textured semi-massive and massive sulphides consisting of chalcopyrite, pyrrhotite, pentlandite and pyrite. Large portions of the Mayville intrusion have seen only cursory geological exploration. Mustang recently conducted an airborne Mag/VTEM survey (completed by Geotech Ltd.) over the north arm of the belt which identified the M2 Zone and at least 5 other late time priority conductors. Follow up geological mapping and sampling of the conductors is underway in an attempt to identify other mineralized zones with nickel-copper potential similar to the M2 Zone. Additionally, Mustang controls approximately 16 km of strike along the southern arm of the BRGB, which hosts the Bird River Sill and the Company's Maskwa Nickel Deposit. (located approximately 30 km south of Mayville) Mustang's 100% owned 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 under National Instrument 43-101.

Drilling will continue at the M2 Zone. The immediate exploration objective is to define the extent and to determine the grade continuity of the M2 nickel-copper discovery by drilling the remaining untested 1.2 km long strike extent of the associated geophysical conductor up to a maximum depth of 400 meters.

Please note that posted on the Mustang website are a property map outlining Mustang's land position in the Bird River Greenstone Belt and an updated drill section of the first four holes.

Mustang adheres to a strict QC/QA program, which was in effect on the Mayville drill program. Secured drill core was examined, diamond sawed at lengths between 0.1 meters and 1.5 meters, with the majority of all samples at 1.5 meters. One half of the core was then bagged, tagged, stapled and completely sealed before being transported by bus to commercial laboratory, Laboratoire Expert in Rouyn-Noranda, Quebec for analytical work according to standard industry practice and analyzed for Ni, Cu, Co, Au, Pt, and Pd. The insertion of blanks and four commercial nickel sulphide reference standards was used as part of the QC/QA program on the samples. Additionally, pulps have been sent to ALS Chemex as external checks on Laboratoire Expert analysis.

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

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

Shares Outstanding: 45,175,026

The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this press release.

Contact Information