Mustang Minerals Corp.

Mustang Minerals Corp.

July 03, 2008 08:00 ET

Mustang Minerals Corp.: New PGM+Ni+Cu Mineralization Drilled at East Bull Lake, Ontario

Mustang Announces Financing

TORONTO, ONTARIO--(Marketwire - July 3, 2008) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) today announced results from widely spaced reconnaissance drilling on the first of several VTEM geophysical anomalies at the Company's East Bull Lake Project west of Sudbury, Ontario. The most significant result from the diamond drilling completed was a new high grade copper-nickel PGM intercept of massive sulfide in a broader intercept of PGM and nickel mineralization in drill hole EB08-02. The Company also announced it has entered into an agreement with Research Capital Corp. to act as a Lead Agent for a best-efforts private placement offering (the "Offering") of up to $3,000,000 of common shares of Mustang issued on a "flow-through" basis (the "Flow-Through Shares").

The results in EB08-02 highlight the significant high grade nature of mineralization in the intrusion and the upside exploration potential of the East Bull Property. The extent and potential of the mineralization in EB08-02 remain subject to follow up drilling. Results are considered highly encouraging in light of the fact that in addition to the shallow target drilled in the current program there are other large deep seated EM targets that remain to be tested at East Bull. These targets have been interpreted by an independent geophysical consultant from the results of a recent VTEM heliborne survey flown at East Bull by Mustang.

Results from drill hole EB08-02 are noted on the following table. This hole targeted near surface mineralization at the Parisien Lake Deformation Zone. The hole was drilled to the south for 180 meters at a dip of -70 degrees to test an airborne conductor that was associated with a previous historical area of trenching and outcrop stripping. The drill hole encountered several mineralized intervals and a subinterval included a 1.1 meter massive high grade section.

Results of the drill hole EB08-02 are:

From To Width(i) PGM(ii) Cu Ni
(m) (m) (m) (g/t) % %
7.0 19.0 12.0 0.33 0.11 0.05
and 45.0 55.0 10.0 0.46 0.39 0.43
and 88.4 93.0 4.6 3.3 2.33 0.12
including 89.9 91.0 1.1 12.5 9.3 0.43
(i)drilled width
(ii)PGM equals platinum, palladium, gold

Drill hole EB08-04 was drilled to test an IP chargeability anomaly located approximately 100 meters to the north of EB08-02. The hole encountered highly anomalous PGM values in disseminated sulfides.

From To Width(i) PGM Cu
(m) (m) (m) (g/t) %
19.0 24.0 5.0 0.40 0.05
and 54.0 57.0 3.0 0.80 0.30
(i)drilled width

East Bull Lake Project - Comment

The results of the drilling are highly encouraging for the potential of the East Bull Lake Project both for base and precious metals. Previous scientific work at East Bull Lake by the Ontario Geological Survey has theorized the potential for high grade massive sulfide mineralization forming along the margins and floor of the intrusion. (see excerpt below) The VTEM geophysical survey and subsequent interpretation completed by Mustang has now confirmed the existence of such targets geophysically while the current drilling has highlighted the potential significant concentrations of platinum, palladium, copper and nickel in the massive sulfides at East Bull Lake. A focus of future work at East Bull Lake will be exploration targeting large massive sulfide bodies which are possibly at depth. A surface EM survey to further define the nature of deep seated anomalies is planned.

A 1993 Ontario Geological Survey Report on East Bull based on field investigations suggested that:

"an unexpected feature of the EBLI(sampling) data is that they compare favorably in terms of their metal abundances to the J-M Reef of the Stillwater Complex, which is one of the most platinum-group element-enriched reef-type platinum-group element deposits known.... "it suggests that the potential exists for extremely large tonnages of sulfide mineralization, perhaps even massive sulfides (along the floor of the intrusion) which have platinum-group element-enrichment level equating to reef-environments." (Ontario Geological Survey Open File Report 5849 dated 1993.)

Company President Robin Dunbar commented that

"Mustang Minerals has commenced feasibility work at its Maskwa Nickel Project in Manitoba - which remains the number one priority for the Company. However, the significant exploration results from the East Bull Lake Property demonstrate the potential for an exciting new discovery for our shareholders. Mustang will advance East Bull Lake (preferably through a joint venture on the project) while maintaining the integrity of our focus in Manitoba where notably we recently intersected a new nickel zone with an intercept of 2.7 feet grading 3.88% nickel."


The drill core from the diamond drill program were prepared and assayed for platinum, palladium, gold, copper and nickel at Accurassay Laboratories in Thunder Bay, Ontario. Platinum, palladium and gold were sampled using a lead pellet fire assay. Nickel and copper were analyzed by Aqua Regia dissolution with analysis by ICP. Analyses were for total nickel content. The core was split at the drill site and a sample split retained and the other sent to the laboratory. As part of the QA/QC program, blank and standards were introduced into the sample shipment at known intervals.

The drill program was designed and supervised by Joerg Kleinboeck, P.Geo., a consulting geologist with Caracle Creek International Consulting Inc of Sudbury, Ontario. Core is stored at the exploration site.

Carey Galeschuk P.Geo. is the Qualified Person for Mustang Minerals Corp. for the purposes of National Instrument 43-101.

Flow Through Financing Announcement

Mustang is pleased to announce today that it has entered into an agreement with Research Capital Corporation ("Research Capital" or "Agent") to act as its lead agent for a best-efforts private placement offering (the "Offering") of up to $3,000,000 of common shares of Mustang issued on a "flow-through" basis (the "Flow-Through Shares"). The Offering is priced at $0.44 per Flow-Through Share. Research Capital has also been granted an option to increase the size of the Offering by up to $450,000, exercisable at any time before closing.

Proceeds from the Offering will be used by Mustang to advance the ongoing development of its Maskwa Nickel Deposit. On closing of the Offering, Research Capital will receive a cash commission of 7% of the gross proceeds arising from the Offering and compensation options to acquire common shares equal to 7% of the Flow-Through Shares sold under the Offering. Any securities issued pursuant to the Offering will be subject to a four month hold period from closing.

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

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 , 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 risks involving the Company's operations, uncertainty of production and 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 parametres 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 year ended December 31, 2007 and thereafter and Material Change Reports filed with the Canadian Securities Administrators and available at

Shares Outstanding: 72,407,427

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