Mustang Minerals Corp.

Mustang Minerals Corp.

February 24, 2005 14:26 ET

Mustang Minerals Corp.: New Nickel Resource At Manitoba Property




FEBRUARY 24, 2005 - 14:26 ET

Mustang Minerals Corp.: New Nickel Resource At
Manitoba Property

TORONTO, ONTARIO--(CCNMatthews - Feb. 24, 2005) -

Indicated Open Pit Nickel Resource of 5.2 Million Tonnes and Indicated
Underground Resource of 790,000 Tonnes Estimated Additional 43-101
Inferred Resources Also Outlined

Mustang Minerals Corp. (TSX VENTURE:MUM) today announced the initial
results of a Mineral Resource estimate prepared by Roscoe Postle
Associates Inc. (RPA) for the Company's 100% owned Maskwa Nickel Project
located 140 kilometers from Winnipeg Manitoba. Open pit resources of
which 5.23 million tonnes grading 0.68% nickel and 0.15% copper are
classified as Indicated and 0.32 million tonnes grading 0.54% nickel and
0.09% copper are classified as Inferred, are located from surface to a
depth of 200 meters. In addition, the underground resources of which
790,000 tonnes grading 1.11% nickel and 0.14% copper are classified as
Indicated and 230,000 tonnes grading 1.04% nickel and 0.14% copper are
classified as Inferred, are located immediately below the open pit
resources to a depth of 350 meters. The Mineral Resource estimate was
completed by RPA on February 18, 2005 and is in accordance with National
Instrument 43-101 (NI 43-101).

The Maskwa Deposit Mineral Resource estimate as of February 2005 is
tabulated below.

Resource Tonnes %Ni %Cu Nickel Copper
Classification (lbs) (lbs)
Open Pit
Mineralization 5,230,000 0.68 0.15 78,750,000 17,060,000
Mineralization 790,000 1.11 0.14 19,310,000 2,460,000
Total Indicated 6,020,000 0.74 0.15 98,060,000 19,520,000

Open Pit
Mineralization 320,000 0.54 0.09 3,810,000 650,000
Mineralization 230,000 1.04 0.14 5,270,000 720,000
Total Inferred 550,000 0.75 0.11 9,080,000 1,370,000

The definitions for resource categories used by RPA 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.
Note: Mineral Resources which are not Mineral Reserves have not
demonstrated economic viability.

RPA Resource Estimate Notes

1. A preliminary open pit shell using Whittle Four-X was used to
constrain the open pit mineralization.

2. The underground resources are situated immediately below the
preliminary open pit shell.

3. Open pit resources are reported at a 0.2% nickel block cut-off grade.

4. Underground resources are reported at 0.8% nickel block cut-off grade.

5. Minimum horizontal thickness of 3 meters and a 3.05 tonnes/m3 tonnage
factor were used.

6. Cobalt, platinum and palladium grades were not estimated.

7. Gemcom Software International Inc. Resource Evaluation Edition
Version GEMS 5.42 was used.

8. Primary search radii of 40 m (130 ft.) down dip ( 158o/-80o), 34 m
(110 ft.) along strike (068o), and 11 m (35ft.) across strike used to
estimate Indicated. Secondary search radii of 80 m (260 ft.) down dip,
68 m (220 ft.) along strike, and 22 m (70 ft.) across strike used to
estimate Inferred.

9. Blocks are 25 ft. by 25 ft. by 25 ft. Ordinary kriging grade
interpolation was used for the nickel open pit mineralization and
inverse distanced was used square for copper and the nickel underground

10. Mineral Resource Estimate by RPA Qualified Person Luke Evans, M.Sc.,

The Maskwa Deposit Mineral Resource Estimate is supported by 91 diamond
drill holes including 23 holes drilled by Mustang in 2004 with the
remainder drilled by Maskwa Nickel Chrome Mines Ltd and Canmine
Resources. Drill hole intersections are generally on sections spaced at
approximately 30 m apart and are 30 m to 60 m apart vertically. The
Gemcom Database comprises 142 drill holes and 2,282 assays. Database
verification work was completed by Mustang and RPA. RPA concluded that
the Maskwa Deposit Gemcom database is valid and acceptable for
supporting resource estimation work.

Other Findings of RPA Report

- RPA considers that the Maskwa Deposit block models are valid,
reasonable and appropriate for supporting the Mineral Resource estimate.

- The Maskwa deposit exhibits good nickel and copper grade and thickness
continuity. The open pit resources extend continuously for 550 meters
along strike, from surface to a depth of 200 meters, and have an average
horizontal thickness of 24 meters. The underground resources begin
immediately under the open pit and extend to a maximum depth of 350
meters and have an average horizontal thickness of 12 meters.

- A significant amount of the Mineral Resources at Maskwa are classified
as Indicated. The open pit Indicated Mineral Resource accounts for 94%
of the contained open pit nickel-copper mineralization while the
underground Indicated Mineral Resource accounts for 77% of the contained
underground nickel-copper mineralization.

- Nickel and copper are the major elements of value with nickel the main
element of value. RPA did not utilize cobalt, platinum and palladium as
part of the evaluation as most historical drill holes did not have
results for these elements. Mustang intends to complete additional
investigation into the potential recoverability of these metals.

- RPA concluded that the Maskwa Deposit area has the best potential to
define new nickel-copper resources on the property and the property has
excellent exploration potential for nickel, copper and gold

Comparison with the 1998 Historical Resource

RPA's current February, 2005 resource estimate is a combination of open
pit and underground resources and as such is not directly comparable to
the 1998 historical underground resource. The number of pounds of nickel
in the RPA Resource Estimate increased to 107 million pounds of nickel
from 74 million pounds in the 1998 historical resource estimate. The
historical resource estimate completed in 1998 did not evaluate the
resource potential based on open pit mining methods. RPA concluded the
1998 resource estimate did not conform to current NI 43-101 standards.

Assay Quality Control/Quality Assurance Program

Mustang adheres to a strict QC/QA program which was in effect on the
Maskwa drill programs carried out by Mustang. Secured drill core was
examined, diamond sawed at lengths between 0.8 and 6.0 feet, with the
majority of all samples at 5.0 feet. 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, rejects were sent to SGS
Lakefield and ALS Chemex respectively as external checks on Laboratoire
Expert analysis.

RPA concluded that Mustang implemented proper security procedures at the
Maskwa property and that the Laboratoire Expert assays are reasonable,
acceptable and Laboratoire Expert's procedures meet standard industry

Additional drill samples by Canmine Resources in the 1990s were shipped
to TSL Laboratories in Saskatoon. Individual re-assays or check assays
were also completed. Maskwa Nickel, in the 1970s analyzed core for
nickel and copper.

RPA concluded that the Canmine and Maskwa Nickel assays are based on
sample preparation and analytical protocols that meet standard industry
practice and are reasonable and acceptable. RPA also noted that the
grades reported by Mustang were in line with historical production
grades from the Maskwa Deposit.

Maskwa Nickel Property

The Maskwa Deposit is located within peridotite at the base of the Bird
River Sill. The property is accessible by an all-season road and is
approximately a 90 minute drive from Winnipeg, Manitoba. Overall, there
are excellent mining services in close proximity to the project
including three phase power directly to the site. Exploration activities
can be completed on a year round basis. Exploration drilling is
currently ongoing to locate additional resources of nickel near the
Maskwa Deposit.

Robin Dunbar, President of Mustang commented on the resource estimate.
He noted that each tonne of the Indicated open pit resource contains 15
pounds of nickel and over 3 pounds of copper and that "the resource
calculation highlights the potential to access the bulk of the resource
at Maskwa through cost efficient open pit mining methods. In addition,
the potential to enhance project economics by capturing the platinum,
palladium and cobalt credits will also be addressed. The initial
resource calculation marks an extremely positive initial development as
we advance this nickel deposit"

The full Resource Estimate report will be posted at with a
link from the Mustang website. Ken Lapierre P.Geo. (ON) is the Qualified
Person for Mustang and has reviewed the contents of this press release.

43-101 Resource Definitions Used

The CIM classification of an Indicated Minerals Resource is that part of
a Mineral Resource for which quantity, grade or quality, densities,
shape and physical characteristics, can be estimated with a level of
confidence sufficient to allow appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration and testing information gathered through
appropriate techniques from location such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological
and grade continuity to be reasonably assumed. An Indicated Mineral
Resource estimate is of sufficient quality to support a Preliminary
Feasibility Study which can serve as the basis for major development
decisions. An Inferred Mineral Resource has a lower level of confidence
than an Indicated Mineral Resource for which quantity and grade or
quality, based on geological evidence can be reasonably assumed.

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

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Contact Information

    Mustang Minerals Corp.
    David Black
    Investor Relations
    1 (416) 955-4773
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.