Mustang Minerals Prefeasibility Study Update $2 Million Financing Announcement
TORONTO, ONTARIO--(Marketwire - Sept. 6, 2007) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) today provided an update and revision to the prefeasibility study on the Maskwa Nickel Deposit. The Company also announced that Western Areas NL has notified the Company that it is exercising 4.5 million warrants into common shares of Mustang. The increased common share ownership of Western Areas will provide an additional $2 million to Mustang and will increase Western Areas equity ownership in Mustang to approximately 19%.
Maskwa Prefeasibility Study
The Maskwa Prefeasbility Study is currently in progress for a mine at Maskwa targeting approximately 10 million pounds of nickel in concentrate per annum and other metal credits. The scope of work for mine design has been revised to include a combined open pit / underground mining operation . The revised mine design will compensate for changes in the expected strip ratio of the project from the Preliminary Economic Analysis. The anticipated plan will be an approximately 8 year mine life with an initial six year open pit at one million tonnes of ore per annum. The total rock (ore and waste) mined in the life of the open pit will be approximately 48 million tonnes to be followed by an estimated two year underground operation. Production of ore from underground is assumed to be at a similar tonnage rate and at a higher grade than from the proposed open pit. This planned design compares to a proposed nine year open pit mine (at one million tonnes of ore per annum) in the Preliminary Economic Assessment (Micon International - January 2007) with total rock mined of 42.2 million tonnes. It is anticipated that an incremental increase in grade in the open pit will be achieved and a significant increase in grade for the underground component will also be achieved using the revised mine design. Wardrop Engineering Inc. will complete the revised scope of mine design.
Ongoing work is being completed on the Maskwa Prefeasbility Study by Wardrop Engineering Inc. (Mine Design, Geotechnical and Resource Model), Golders Associates Ltd. (tailings disposal), F Wright Consulting Inc. ( metallurgical test work ) and Met-Chem Canada Inc. ( Metallurgy and Process Definition, Ore Processing Facilities and Mine Site Infrastructure).
Western Areas NL Exercises Warrants
Western Areas NL has notified Mustang that it will exercise the 4,570,401 warrants it received as part of the private placement to Mustang announced November 15, 2006 into common shares of Mustang. The warrants will provide cash proceeds of $2 million to Mustang and will increase Western Areas equity interest in Mustang to approximately 19% of the outstanding common shares of the Company.
Ernie Marcotte P.Eng is the Qualified Person for Mustang Minerals Corp. for the purposes of National Instrument 43-101.
To find out more about Mustang Minerals Corp. (TSX-V: MUM)
visit our website at www.mustangminerals.com.
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the year ended December 31, 2006 and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Shares Outstanding: 63,923,359
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