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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: ---------------------------------------------------- EB08-02 ---------------------------------------------------- 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.
---------------------------------------------- EB08-04 ---------------------------------------------- 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."
QA/QC
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 www.mustangminerals.com.
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 www.sedar.com.
Shares Outstanding: 72,407,427
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the contents of this press release.
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