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TORONTO, ONTARIO--(Marketwire - June
26, 2008) - Mustang Minerals Corp., (TSX VENTURE:MUM)(FRANKFURT:NJF)
today announced it has filed at www.sedar.com the National Instrument 43-101 prefeasibility study completed
for the Company's Maskwa Nickel Project The study was compiled by Micon
International Limited with Met-Chem Canada Inc, Wardrop Engineering Inc
and Golder Associates. The proposed project envisages a 2,750 tonnes
per day open pit mine and milling operation producing an average of 9.2
million (payable) pounds of nickel per year in concentrate and other
credits including platinum group metals, copper and cobalt. The project
is located approximately 140 km northeast of Winnipeg in Manitoba,
Canada, a favourable political jurisdiction with low hydroelectric
power rates and established infrastructure. Standard grinding and
flotation techniques will be utilized to produce a nickel concentrate.
Micon concluded that "the Maskwa Project contains an economic mineral
reserve and warrants continued development to the full feasibility
stage."
"The prefeasibility study of the Maskwa Project is a significant
milestone towards the re-establishment of a mining operation at the
Maskwa site" said Robin Dunbar President of Mustang. "The
prefeasibility study indicates that the planned operation at Maskwa has
the potential to be a profitable low cost producer of nickel and other
by-product metals. Using the assumptions outlined in the prefeasibility
study the project will have an attractive cash cost net of credits of
CDN $2.77 per pound over its life. We are moving ahead on all fronts at
Maskwa to complete feasibility level studies and permitting required
for the project".
Using nickel prices per pound of US $10 for the first two years and
US$8 per pound thereafter the project assumed that open pit ore would
be mined, milled and a concentrate produced for shipment to a Sudbury
smelter. The undiscounted pre-tax operating profit generated by the
project was CDN$285 million with single peak year earnings of CDN$ 63
million.
Feasibility Underway at Maskwa Project
Mustang is now moving forward aggressively with a feasibility study and
permitting activities for the Maskwa Project. Key activities are as
follows:
1. Metallurgical Testwork - A feasibility level metallurgical test work
program has been initiated by Mustang engaging the services of Xstrata
Process Support. The overall feasibility metallurgical program will
expand on the test work completed for the prefeasibility study.
2. Updated Resource Calculation - A new resource estimate incorporating
additional assay data is planned for the fall of 2008. As part of an
updated resource calculation Mustang has;
a) Completed a first phase in-pit sampling program Previously unassayed
drill core was split, logged and assayed. All of the drill core assayed
were from holes previously drilled inside the proposed Maskwa pit shell
and as such is anticipated to add to the existing resource.
b) Drilled and submitted for assay an additional six holes to test for
near surface and potential hangingwall mineralization inside the
current pit shell.
c) Drilled an additional six drill holes to the east of the current
targeting the expansion of the pit in this direction.
3. Environmental Baseline Studies and Permitting - Mustang is currently
in the final stages of completing baseline environmental studies at
Maskwa. First Nations and other stakeholder engagement are also planned
in the coming months as part of permitting activities for the project. Wardrop
Engineering Inc. is the consultant working with the Company on these
issues.
Additional exploration results are currently pending for the Maskwa
Property and Mustang's East Bull Lake Property.
Carey Galeschuk P. Geo and Ernie Marcotte P. Eng are the Qualified
Person for Mustang Minerals Corp. for purposes of National Instrument
43-101.
Disclaimer: The Company notes that assumptions and technical inputs
used in the prefeasibility study may vary for the feasibility study. As
such the results of a feasibility study will vary from those of the
prefeasibility study.
To find out
more about Mustang Minerals Corp. (TSX-V: 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 period 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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