Mustang, Falco join forces

Vancouver — Mustang Minerals (YMU-V) has joined forces with Falconbridge (FL-T) to explore for diamonds in the Marten River area, near North Bay, Ont.

Mustang has obtained a half-stake in the Marten River joint venture, which consists of 425 claim units in 14 townships. The land position was selected using geophysical and geochemical data from an earlier exploration program that was performed by Falconbridge between 1979 and 1990.

“Acquisition of an interest in the Falconbridge joint venture and our assembly of the Marten River project represent a high-potential, early-stage diamond exploration opportunity in a highly prospective and under-explored geological terrain,” says Ken Lapierre, Mustang’s vice-president of exploration.

The junior will operate the joint venture and will seek shareholder approval to transfer the Marten River project to a wholly owned diamond exploration subsidiary for common and preferred shares. After the completion of the transaction, Mustang shareholders will continue to hold their Mustang shares; they will also receive shares in a new publicly traded diamond exploration subsidiary.

To earn its half-interest from the vendor and enter into the joint venture with Falco, Mustang must pay $100,000 in cash and issue 100,000 shares. Mustang will also pay Falco $100,000 in cash or shares to reimburse the major for recent costs related to staking and data compilation.

The project hosts 70 high-priority circular magnetic anomalies, as well as a geochemical database consisting of 1,253 geochemical samples. A total of 982 of the samples (78%) returned kimberlitic indicator minerals. Based on the promising geochemistry, Mustang has picked up an additional 933 mining claim units through staking or purchase agreements. Results are being compiled from regional till sampling and an airborne geophysical survey. In addition, the property lies at the juxtaposition of three major structural zones: the Lake Timiskaming structural zone, the Grenville Front tectonic zone and the Ottawa-Bonnechere graben.

Mustang recently performed regional till sampling in conjunction with an airborne survey of the Marten River Project area. Results from this program were being compiled at presstime.