Mustang cuts more nickel at C zone

Vancouver — Mustang Minerals (MUM-V) continues to be encouraged by results obtained from the C zone of the Bannockburn nickel project, 100 km southeast of Timmins, Ont.

Drilling has extended nickel mineralization along strike for 160 metres and to a vertical depth of 100 metres, and the zone remains open in all directions. It was initially identified as a near-surface geophysical anomaly.

Mineralization is hosted along the basal contact of komatiitic ultramafic rocks and has been traced at surface for 155 metres. Mustang recently completed six holes to expand the east-west-trending C zone. Highlights are as follows:

— Hole 10 cut 4 metres averaging 1.88% nickel, 0.08% cobalt and 0.31 gram combined platinum and palladium starting at a down-hole depth of 6.3 metres (including a 2.5-metre section of 2.55% nickel, 0.11% cobalt and 0.44 gram combined platinum and palladium).

— Hole 11 cut 2 metres of 1.85% nickel, 0.08% cobalt and 0.33 gram combined platinum and palladium starting at 27.1 metres down-hole.

— Hole 12 cut 1.8 metres of 1.9% nickel, 0.09% cobalt and 0.60 gram combined platinum and palladium starting at 45.5 metres down-hole.

— Hole 15 intersected 2.04 metres of 2.02% nickel, 0.07% cobalt and 0.73 grams combined platinum and palladium starting at 73.5 metres down-hole.

Assays were completed at Expert Laboratories in Rouyn-Noranda, Que., using conventional fire-assay techniques.

Holes 13 and 14 intersected a north-south fault east of the C zone, and a surface electromagnetic survey east of this fault defined a conductor representing the potential extension of the zone for an additional 100 metres.

Mustang plans to continue exploring the project as part of a $3-million exploration program.

Other geophysical anomalies in the immediate area include the B zone, about 500 metres west of the C zone. The B zone represents a northwest-trending, 400-metre-long conductor on a favourable komatiite-dacite contact.

Mustang controls 20 km of unpatented mining claims in the Bannockburn area. the company optioned a core block of mining claims from Outokumpu Mining and stands to earn a 100% interest in them by spending $350,000 and making an additional cash payment of $60,000 before June. The ground is subject to an underlying 2% net smelter return royalty.