Mustang cuts komatiitic nickel mineralization

Vancouver — Mustang Minerals‘ (MUM-V) drills have discovered nickel mineralization at the Bannockburn nickel project, situated about 100 km southeast of Timmins, Ont.

Mustang states that the C zone is a new discovery of komatiite associated Kambalda-style nickel mineralization. Nine drill holes tested approximately 120 metres of strike length of the C zone. It remains open in all directions. Hole MBC-7, collared the furthest east intersected the C zone as well as an additional zone of nickel mineralization.Highlights of preliminary results from the first nine holes listed below;

• Hole MBC-1 cut 0.45 metres averaging 1.16% nickel, starting 26.65 metres down-hole.
• Hole MBC-2 cut 3.5 metres averaging 2.39% nickel, 0.05% cobalt and 0.49 gram combined platinum and palladium, starting at a down-hole depth of 8.4 metres. This included a 0.5-metre interval that averaged 2.56% nickel, 0.06% cobalt and 0.44 gram combined platinum and palladium.
• Hole MBC-4 cut 1.05 metres averaging 2.02% nickel, 0.05% cobalt and 0.52 gram combined platinum and palladium, starting 15.1 metres down-hole. This included a 0.6-metre interval that averaged 2.77% nickel, 0.05% cobalt and 0.52 gram combined platinum and palladium.
• Hole MBC-5 cut 1.35 metres averaging 1.84% nickel, 0.04% cobalt and 0.03 gram combined platinum and palladium, starting 4.85 metres down-hole. This included a 0.85-metre section that averaged 2.45% nickel, 0.04% cobalt and 0.32 gram combined platinum and palladium.
• Hole MBC-6 cut 2.40 metres averaging 1.45% nickel, 0.03% cobalt and 0.36 gram combined platinum and palladium, starting 9.7 metres down-hole. This included a 1.30 metre section that averaged 2.15% nickel, 0.04% cobalt and 0.52 gram combined platinum and palladium.
• Hole MBC-7 cut 2.5 metres averaging 1.11% nickel, 0.04% cobalt and 0.57 gram combined platinum and palladium, starting 19.8 metres down-hole. At a depth of 27.7 metres down-hole, a 1.35-metre section assayed 1.24% nickel, 0.04% cobalt and 0.81 gram combined platinum and palladium. This included a 0.30 metre section that averaged 2.20% nickel, 0.04% cobalt and 1.81 grams combined platinum and palladium.
• Hole MBC-9 cut 2.75 metres averaging 2.35% nickel, 0.06% cobalt and 0.41 gram combined platinum and palladium, starting 7.5 metres down-hole. This included a 0.50 metre section that averaged 2.72% nickel, 0.07% cobalt and 0.35 gram combined platinum and palladium.

Additional drilling is now underway along strike and at depth of the C zone. The holes will be collared at 15- to 25-metre drill centres to determine dip and continuity of the zone. Initial date suggest that the C zone strikes east-west and exhibits a rotated south dip that steepens eastward. Holes 1, 3 and 8 are believed to have undercut the zone along its western exposure.

“Mustang has a rare find of valuable nickel mineralization within an extensive property position where exploration can be conducted year-round,” said Robin Dunbar, president of Mustang. “We are at the start of a multimillion-dollar exploration program and growth phase for the company.”

Mustang also reports that geophysical survey coverage will be expanded in an attempt to identify the zone along strike and at depth as well as to better define additional known near-surface geophysical conductors that are nearby.

The C zone was initially identified as a near-surface TEM geophysical anomaly in October of last year. Mineralization is hosted along the basal contact of komatiitic ultramafic rocks. The surface mineralization at the C-zone has been mapped for 155 metres and remains open along strike and at depth.

Other prominent geophysical anomalies in the immediate area include the B zone, which is situated about 500 metres to the west of the C zone. The B zone represents a northwest trending, 400-metre-long, TEM geophysical conductor that is situated along a favourable komatiite/dacite contact. This zone will also be tested in the current drill program.

Mustang controls 20 km of unpatented mining claims in the Bannockburn area. A core block of mining claims was optioned from Outokumpu Mining. Mustang stands to earn a 100% interest in these claims by spending $350,000 and making an additional cash payment of $60,000 prior to June, 2004. The ground is subject to an underlying 2% net smelter returns royalty.