Mustang reports Mayville copper-nickel resource (April 26, 2010)

Mustang Minerals (MUM-V) has updated its resource estimate for the Mayville copper-nickel project in southeast Manitoba.

To calculate the resource, consulting firm Scott Wilson Roscoe Postle Associates took drill results from 2005 and 2006 and then included platinum group metal values, recently completed metallurgical recovery results and updated operating costs.

Indicated resources at Mayville now stand at 9.23 million tonnes grading 0.23% nickel, 0.61% copper and 0.17 gram palladium per tonne. A net smelter return cutoff value of $30 was used. Mustang also listed the results for NSR cutoffs of $50 and $18.

Inferred resources total 188,000 tonnes grading 0.22% nickel, 0.59% copper and 0.13 gram palladium.

Mustang completed the resource to evaluate the economic potential of the Mayville deposit as a second open-pit mine in a joint development with the Makwa nickel project.

Mayville and Makwa are about 35 km apart traveling on existing roads.

Makwa is located partially in the Nopiming provincial park in an area that allows for mineral extraction.

The Makwa deposit has probable reserves of 9.85 million tonnes grading 0.54% nickel, 0.011% copper, 0.094 gram platinum and 0.34 gram palladium for a total of 53,000 tonnes of nickel and 137,000 oz. of platinum and palladium. Makwa reserves were updated in February from about 7 million tonnes at similar grades.

A prefeasibility study in May 2008 looked at developing an open-pit mine at Makwa that would mine at a rate of 2,750 tonnes per day to produce 9.2 million lbs. of nickel in concentrate per year plus byproduct credits of PGMs, copper and cobalt.