Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

December 01, 2010 07:00 ET

Mustang Updates Exploration at Mayville/Tanco Properties

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2010) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) today is pleased to provide an update on exploration activities at its Mayville and Tanco Properties located in south eastern Manitoba. The Company has engaged in field activities to generate high potential drill targets for the winter drill season. This involved following up on a historic mineralized showing on the Mayville Property and also completion of geological mapping in the area of a significant airborne EM targets on the newly acquired Tanco Property. 

Tanco Property

Mustang recently acquired an option on the Tanco Property from the Tantalum Mining Corporation of Canada ("Tanco") (see announcement dated July 13, 2010). The property is located adjacent to and immediately south of Mustang Minerals Mayville Property, where Mustang has an existing open pit copper nickel platinum group metals (PGM) resource (see below). The Company recently flew a Geotech versatile time domain electromagnetic (VTEM) survey over the Property at 100 meter line spacing. The survey identified several significant geophysical anomalies. 

Field crews have been working to map the property in the area of the VTEM anomalies. A gabbroic-mafic volcanic sequence of rocks has been identified in conjunction with a prominent VTEM anomaly on the Tanco ground. The interpreted contact is under cover. The geological environment is interpreted to be similar to that at the Mayville Deposit where the gabbro unit hosts copper+nickel+pgm mineralization at the volcanic contact.

The Tanco Property optioned by Mustang is located immediately south of Mustang's Mayville Property where Mustang has outlined a NI 43-101 open pit resource consisting of 9.2 million tonnes at 0.61% copper, 0.23% nickel and 0.43 g/t platinum group metals (PGM). The Mayville deposit is open along strike and at depth. 

Mayville Property

The Company has continued mapping in the south east part of the Mayville Property just north of the Tanco Property. The Company has submitted samples for assay which were taken from a surface showing in the area. Samples contain disseminated chalcopyrite, pyrite and pentlandite. Assessment work filed with the Province of Manitoba indicates the showing is coincident with an anomaly from a previously completed IP survey. The samples taken are highly brecciated. Assay results are pending. 

Silver Assays from Mayville Deposit

Mustang has completed assaying of samples from Mayville drillhole May05-16 to test for silver potential. The drilling completed at the Mayville Deposit in 2005 and 2006 did not include assays for silver. As recent assaying of concentrates produced from Mayville did contain appreciable silver. Mustang submitted samples for silver assays on May05-16. 

On September 08, 2005 Mustang reported the following assays from May05-16.

Hole #   Intersection
(meters)
  Width
(meters)
  Ni
(%)
  Cu
(%)
  Co
(%)
  Pt+Pd+Au
(ppb)
May05-16   329.8-406.1   76.3   0.25   0.75   0.01   326
Includes   341.7-375.1   33.4   0.32   1.06   0.02   463
Includes   160.3-375.1   14.8   0.47   1.58   0.03   564

Recent assays for silver from May05-16 returned 4.49g/t Ag over 47.3 m starting at 331.3 m. The highest grade silver assay was from this portion of the hole with 19.67 g/t Ag over 0.3m. Over the same 47.3 m interval in May05-16, analysis returned 0.25% Ni, 0.78% Cu, 0.01% Co and 469 Pt+Pd+Au.

Mustang has completed initial metallurgical tests on silver recovery from Mayville ores. The most promising test was a silver recovery of 50% from a 0.7% copper feed. 

Mustang is currently planning a drill program at Mayville and Tanco to test the new targets generated by the geophysical surveys and fieldwork. 

Analytical Work

The re-assays for the May05-16 hole were completed from stored sample pulps at 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 traditionally logged and split on site at Makwa site with half the core sent to the laboratory. Mustang conducts an ongoing QA/QC program on new drill core including inserting blanks, duplicates and standards with the sample submissions to the laboratory. For the re-assay program, no QAQC samples were added by the company. 

All field samples have been sent to Accurassay Laboratories in Thunder Bay Ontario. Analysis will be conducted for Au, Pt, Pd Ni, Cu, Co and Ag.

About Mustang Minerals Corp.

Mustang Minerals is exploring and developing two open pittable deposits located in southeast Manitoba. 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 0.433 g/t PGM at the Makwa Project. The 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 (see April 15, 2010 news release).

Carey Galeschuk P.Geo is the Qualified Person for purposes of NI 43-101 for this press release.

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.

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