Failing to turn up any significant alteration halos around seven recently tested airborne geophysical anomalies, Mustang Minerals (YMU-V) has dropped its option on the McAra Lake and McAra Lake North properties, near Shining Tree Ontario.
Under a 2002 deal, Mustang stood to earn a 100% interest in the property from a prospecting group, subject to a net smelter return royalty, by spending $1 million over five years. In all, the company spent more than $350,000 on exploration, including ground geophysics and 11 drill holes totalling 1,335 meters.
Two of the holes returned upwards of 1.5 metres of sulphides grading as much as 1.07% copper, 0.31% zinc, 0.36% lead and 0.23% cobalt, plus 24 grams silver and 0.54 gram gold per tonne. Another hole returned up to 11 metres running 1.4 grams gold per tonne, including a 4-metre section grading 3.1 grams gold.
Meanwhile, about 100 km southeast of Timmins, Mustang has optioned the Bannockburn nickel project from Outokumpu Mines.
Mustang can acquire the property by spending $350,000 on exploration and paying $100,000 in cash. The property is subject to an underlying net smelter royalty.
Outokumpu outlined Kambalda-style massive and heavily disseminated sulphides in footwall embayments at the base of komatiitic flows on the property. The Finnish company also outlined mineralization similar to Mt. Keith-style disseminated sulphide mineralization.
Shares in Mustang plummeted 7, or nearly 16% of value, to 38 in late afternoon trading in Vancouver on June 26.
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