Mustang cuts more nickel at C-zone

Vancouver — Mustang Minerals (MUM-V) has released additional encouraging drill results on the C-zone from the Bannockburn nickel project, situated 100 km southeast of Timmins, Ontario.

At the C-zone, drilling has extended the nickel mineralization along strike for 160 metres and to a vertical depth of 100 metres. The zone remains open in all directions. It 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 and has been traced at surface for 155 metres. Mustang recently completed drilling 6 holes to expand the east-west-trending C-zone Highlights from the drill results are as follows;

• MBC-10 cut 4.0 metres averaging 1.88% nickel, 0.08% cobalt and 0.31 gram combined platinum and palladium, starting 6.3 metres down-hole. This included a 2.5-metre section averaging 2.55% nickel, 0.11% cobalt and 0.44 gram combined platinum and palladium.
• MBC-11 cut 2.0 metres averaging 1.85% nickel, 0.08% cobalt and 0.33 gram combined platinum and palladium, starting 27.1 metres down-hole.
• MBC-12 cut 1.80 metres averaging 1.90% nickel, 0.09% cobalt and 0.60 gram combined platinum and palladium, starting 45.5 metres down-hole.
• MBC-15 cut 2.04 metres averaging 2.02% nickel, 0.07% cobalt and 0.73 grams combined platinum and palladium, starting 73.5 metres down-hole.

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

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

Mustang plans to continue exploring the project utilizing geophysics and drilling in order to better define the mineralization. The work is part of a $3-million exploration program at the Bannockburn nickel project.

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.