Mustang drills nickel

Vancouver — Drilling by Mustang Minerals (MUM-V) has resulted in the discovery of nickel mineralization at the Bannockburn project, 100 km southeast of Timmins, Ont.

Nine drill holes tested 120 metres of strike length of the C zone, which consists of komatiite-associated Kambalda-style nickel mineralization and remains open in all directions.

The zone was intersected by hole 7, which was collared the farthest east. (The zone also cut another zone of nickel mineralization.)

“Mustang has a rare find of valuable nickel mineralization within an extensive property position where exploration can be conducted year-round,” says President Robin Dunbar. “We are at the start of a multimillion-dollar exploration program and growth phase for the company.”

Highlights include:

— Hole 1 intersected 0.45 metre averaging 1.16% nickel starting at a down-hole depth of 26.6 metres.

— Hole 2 cut 3.5 metres of 2.39% nickel, 0.05% cobalt and 0.49 gram combined platinum and palladium starting at 8.4 metres down-hole.

— Hole 4 cut 1.05 metres of 2.02% nickel, 0.05% cobalt and 0.52 gram platinum-palladium starting at 15.1 metres down-hole, including 0.6 metre grading 2.77% nickel, 0.05% cobalt and 0.52 gram platinum-palladium.

— Hole 5 cut 1.35 metres grading 1.84% nickel, 0.04% cobalt and 0.03 gram platinum-palladium starting at 4.85 metres down-hole.

— Hole 6 cut 2.4 metres of 1.45% nickel, 0.03% cobalt and 0.36 gram platinum-palladium starting at 9.7 metres down-hole. This included a 1.3-metre section averaging 2.15% nickel, 0.04% cobalt and 0.52 gram platinum-palladium.

— Hole 7 returned 2.5 metres of 1.11% nickel, 0.04% cobalt and 0.57 gram platinum-palladium starting at 19.8 metres down-hole. At a depth of 27.7 metres down-hole, a 1.35-metre section assayed 1.24% nickel, 0.04% cobalt and 0.81 gram platinum-palladium

— Hole 9 cut 2.75 metres of 2.35% nickel, 0.06% cobalt and 0.41 gram platinum-palladium starting at 7.5 metres down-hole.

Additional drilling is under way along strike and at depth. The holes will be collared at 15-to-25-metre centres to determine the dip and continuity of the zone. The C zone appears to strike east-west and exhibits a rotated south dip that steepens eastward. Holes 1, 3 and 8 are believed to have undercut the zone along its western exposure.

A geophysical survey will be expanded in order to outline the zone along strike and at depth, and to define additional near-surface geophysical conductors in the vicinity.

The C zone was initially identified as a near-surface geophysical anomaly in October 2003. Mineralization is hosted along the basal contact of komatiitic ultramafic rocks. Surface mineralization at the zone has been mapped for 155 metres and remains open along strike and at depth.

Other prominent geophysical anomalies in the immediate area include the B zone, 500 metres west of the C zone. The B zone represents a northwest-trending, 400-metre-long, geophysical conductor situated along a favourable komatiite/dacite contact. This zone will be tested in the current drill program.

Mustang controls 20 km of unpatented mining claims in the Bannockburn area. A core block of mining claims was optioned from Outokumpu Mining. Mustang stands to earn a 100% interest in these claims by spending $350,000 and paying $60,000 in cash before June 2004. The ground is subject to an underlying 2% net smelter return royalty.