Mustang sums up Maskwa (February 24, 2005)

Mustang Minerals (MUM-V) has tabled an initial resource estimate for its Maskwa nickel project, 140 km from Winnipeg, Man.

According to Rosco Postle Associates, the project’s open-pit indicated resources total 5.2 million tonnes grading 0.68% nickel and 0.15% copper, for 78.8 million lbs. of contained nickel and 17 million lbs. of contained copper. Another 320,000 tonnes running 0.54% nickel and 0.09% copper are classified as inferred resources. The estimate employs a cutoff grade of 0.2% nickel.

The open-pit resource strikes for some 550 metres, and stretches from surface to a depth of 200 metres. The resource’s average horizontal thickness is 24 metres. Immediately below the open pit boundary is 150 metres worth of underground indicated reserves amounting to 790,000 tonnes grading 1.11% nickel and 0.14% copper, for 19.3 million lbs. of contained nickel and 2.5 million lbs. contained copper. Another 230,000 tonnes running 1.04% nickel and 0.14% copper are categorized as inferred material. The underground resources average 12 metres in horizontal thickness; the estimates are based on a cutoff grade of 0.8% nickel.

The resource employs data from 91 drill holes around 30 metres apart sunk mostly by previous owners Maskwa Nickel Chrome Mines and Canmine Resources; Mustang chipped in 23 holes in 2004.

RPA’s study did not include cobalt, platinum and palladium values, as most of the historical holes were not assayed for these elements. Mustang plans to look into the recoverability of these metals.

Exploration drilling continues at Maskwa, with the aim of testing new zones of nickel mineralization outside the resource area, especially several electromagnetic targets to the west of the past-producing Maskwa open pit. The company intends to sink around 3,000 metres in 20 holes.