Mustang Announces Increase to Mayville Resource
February 20 2013 - 5:30AM
Marketwired Canada
Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) ("Mustang" or the
"Company") today announced the results of a National Instrument 43-101 compliant
resource estimate for its Mayville Deposit located in southeastern Manitoba.
Indicated resources increased significantly from the resource estimate announced
April 15, 2010. The indicated resource announced in 2010 was 11.6 million tonnes
at 0.55% copper and 0.21% nickel which increased to 24.3 million tonnes at 0.45%
copper and 0.19% nickel (0.69% copper equivalent). Inferred resources increased
from 0.2 million tonnes at 0.55% copper and 0.2% nickel in 2010 to 4.1 million
tonnes at 0.45% copper and 0.18% nickel (0.68% copper equivalent). The updated
resource estimate was reported at a $20 NSR cut-off.
A substantially larger mineral resource at Mayville provides a positive catalyst
for development of the Makwa and Mayville Deposits. The Company has announced
that it plans to complete a Preliminary Economic Assessment based on
co-development of the two deposits. The Mayville Property in particular has
excellent exploration potential and remains open at depth and along strike. The
Mayville and Makwa deposits are located within Mustang's mineral tenements in
the highly prospective Bird River Greenstone Belt - an emerging area prospective
for nickel, copper and platinum group metals.
Details of the resource estimate are as follows:
MINERAL RESOURCE SUMMARY BY ZONE AS OF FEBRUARY 12, 2013
Mustang Minerals Corp. - Mayville Property
Zone Tonnage Cu Ni Au Pt Pd Eq Cu
(M t) (%) (%) (g/t) (g/t) (g/t) (%)
----------------------------------------------------------------------------
Indicated
Main Zone 16.0 0.48 0.19 0.05 0.05 0.14 0.73
Footwall Zone 7.7 0.38 0.17 0.04 0.05 0.14 0.60
East Zone 0.6 0.65 0.21 0.11 0.08 0.18 0.91
Total Indicated 24.3 0.45 0.19 0.05 0.05 0.14 0.69
----------------------------------------------------------------------------
Inferred
Main Zone 0.5 0.47 0.18 0.04 0.05 0.16 0.70
Footwall Zone 3.2 0.46 0.18 0.04 0.07 0.15 0.69
Miscellaneous 0.4 0.41 0.15 0.04 0.04 0.14 0.60
Total Inferred 4.1 0.45 0.18 0.04 0.06 0.15 0.68
Zone Ni Cu Au Pt Pd
(M lb) (M lb) (k oz) (k oz) (k oz)
----------------------------------------------------------------------------
Indicated
Main Zone 68.0 170.9 28 25 74
Footwall Zone 29.4 64.0 10 13 35
East Zone 2.6 8.1 2 1 3
Total Indicated 99.9 243.0 40 39 112
----------------------------------------------------------------------------
Inferred
Main Zone 1.9 5.0 1 1 2
Footwall Zone 12.7 32.1 5 7 16
Miscellaneous 1.5 3.9 1 1 2
Total Inferred 16.1 41.0 6 8 20
Notes:
1. CIM Definition Standards have been followed for classification of
mineral resources.
2. Mineral resources are reported at an NSR cut-off value of
C$20/tonne.
3. NSR values are calculated in C$ using factors of $50 per% Cu and
$64 per% Ni. These factors are based on metal prices of
$US3.40/lb Cu and US$8.50/lb Ni, estimated recoveries and smelter
terms, and a US$/C$ exchange rate of 1.0.
4. A minimum mining width of two metres was used.
5. Totals may not add correctly due to rounding.
6. Mineral resources are not mineral reserves and do not have
demonstrated economic viability. NSR cut-off values were based on
metal price assumptions of US$8.50 per pound nickel and US$3.40
per pound copper.
7. Eq Cu - copper equivalent based on total metal value adjusted for
metallurgical recoveries of 90% copper and 45% nickel and typical
smelter payables and charges.
TABLE 2 MINERAL RESOURCE SUMMARY BY NSR CUT-OFF AS OF FEBRUARY 12, 2013
Mustang Minerals Corp. - Mayville Property
NSR Cut-off Tonnage Cu Ni Au Pt Pd Eq Cu
(C$) (M t) (%) (%) (g/t) (g/t) (g/t) (%)
----------------------------------------------------------------------------
Indicated
$30 14.4 0.54 0.22 0.06 0.05 0.16 0.82
$25 19.5 0.49 0.20 0.05 0.05 0.15 0.75
$20 24.3 0.45 0.19 0.05 0.05 0.14 0.69
$15 27.0 0.43 0.18 0.05 0.05 0.14 0.66
----------------------------------------------------------------------------
Inferred
$30 2.8 0.52 0.19 0.05 0.07 0.17 0.76
$25 3.5 0.48 0.19 0.05 0.06 0.16 0.72
$20 4.1 0.45 0.18 0.04 0.06 0.15 0.68
$15 4.4 0.44 0.17 0.04 0.06 0.15 0.66
NSR Cut-off Ni Cu Au Pt Pd
(C$) (M lb) (M lb) (k oz) (k oz) (k oz)
----------------------------------------------------------------------------
Indicated
$30 69.2 172.7 28 25 76
$25 86.1 212.4 34 33 96
$20 99.9 243.0 40 39 112
$15 106.2 256.1 42 43 120
----------------------------------------------------------------------------
Inferred
$30 11.9 31.6 4 6 15
$25 14.3 37.3 5 7 18
$20 16.1 41.0 6 8 20
$15 16.7 42.4 6 8 21
Notes: As per Table 1 above, with exception of footnote 2. Mineral Resources
in Table 2 are reported at NSR cut-off values as listed.
MINERAL RESOURCE ESTIMATE SUMMARY
In the area of the M2 deposit, the Mayville drill hole database includes 103
diamond core holes totalling 24,138 m. Drill sections are spaced 50 m apart
along strike with intercepts on each section averaging 50 m apart down dip. A
set of three-dimensional wireframe models of the mineralized zones were
interpreted in cross section and plan views using the descriptive logs, a
minimum NSR value of C$15 per tonne, and a minimum true thickness of two metres.
Prior to compositing to two metre lengths, assays were capped to 2.5% Cu, 1.5%
Ni, 0.40 g/t Au, 0.35 g/t Pt, and 0.70 g/t Pd. Block grades were estimated using
the inverse distance squared interpretation algorithm. A global density of 3.0
t/m3 was assigned to the material contained within the wireframe models. Mineral
Resources are reported within a preliminary pit shell generated in Whittle
software.
Within the updated resource block model, the low concentrations of the precious
metals (Au, Pt, and Pd) are such that they do not contribute to the NSR value
due to typical treatment and refining terms and penalties. While they have no
influence on the cut-off value and reported resource tonnage, they are estimated
on the assumption that local higher grade zones may be present within the
resource area. These higher grade areas do contribute to the Whittle pit
optimization process using the assumed treatment and refining terms and
conditions and may potentially offer revenue enhancement at some future point.
Exploration
Mustang will shortly commence drilling along strike of the Mayville Deposit to
follow up on a recent step out hole approximately 200 meters east of the
resource that intersected 18.53 meters of 0.56% copper and 0.16% nickel (see
press release dated December 12, 2012). The objective of future drilling will be
to look at the potential for on strike incremental tonnage at Mayville. Targets
along an approximately one kilometer strike extension will be tested.
Current mineral reserves and mineral resources at Mustang's two deposits are:
Makwa Ni-Cu Deposit
NI 43-101 Probable Mineral Reserve Estimate of 9.86 million tonnes containing
0.541% nickel, 0.113% copper 0.433 g/t combined PGM. (reserve estimate completed
February 2010 by Micon International Limited)
Mayville Cu-Ni Deposit
NI 43-101 Indicated Mineral Resource estimate is 24.3 million tonnes containing
0.45% copper, 0.19% nickel. Inferred mineral resource estimate is 4.1 million
tonnes containing 0.45% copper and 0.18% nickel. (Feb. 2013 RPA Inc.)
Carey Galeschuk P.Geo. is the National Instrument 43-101 Qualified Person for
Mustang Minerals Corp. and has approved the contents of this release. David
Ross, P. Geo. of RPA Inc. was the Qualified Person for the February 2013
resource estimate at Mayville.
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.
Shares Outstanding: 229,639,894
FOR FURTHER INFORMATION PLEASE CONTACT:
Mustang Minerals Corp.
David Black
Investor Relations
416-955-4773
info@mustangminerals.com
www.mustangminerals.com
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