TORONTO, ONTARIO--(Marketwire - Feb. 27, 2013) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) ("Mustang" or the "Company") today announced that it is commencing drilling activity at its Mayville Property located in southeastern Manitoba. The primary objective of the drill program is to test the eastern strike extension of the Mayville Deposit.
The main area of interest has been defined by geophysics along strike for approximately 450 meters to the east of the Mayville Deposit. Drillhole May-12-143 is the only previous hole drilled in this area (~ 250 meters east of the Mayville Deposit) and intersected 18.53 meters grading 0.56% copper and 0.16% nickel.
A secondary feature of interest to be drill tested is a potential offset or parallel zone located to the northeast. Overall about one kilometer of total strike length will be tested to the east of the Mayville deposit in this phase. In total about 2,500 meters of drilling is planned.
Mustang announced an update mineral resource estimate for Mayville on February 20th. 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.
Grant of Incentive Options
The Company also announced that it is issuing a total of 2.2 million incentive stock options to officers, directors, consultants and employees of the Company pursuant to the existing stock option plan of the Company. The term of the options is for 5 years. The exercise price of the options are a minimum of $0.12 per share and are subject to regulatory approval.
Current ore reserves and mineral resources at Mustang's two deposits are:
Makwa Ni-Cu Deposit
NI 43-101 Probable Ore 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.
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.
Shares Outstanding: 229,639,894
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