Toronto-based
The financing consisted of 1.6 million special warrants priced at 70 each. A warrant is exchangeable for one unit, which consists of one flow-through share and half a warrant. Each full warrant entitles the holder to buy one additional share at 90 for two years.
Mustang now has $2.8 million in cash. Once the flow-through shares have been cleared for distribution, it will have 17 million shares outstanding, or 20.1 million shares fully diluted.
The junior is involved in a joint venture with
The joint venture is targeting “contact-style” bulk-tonnage PGM mineralization exposed along the 4.5-km north contact of the River Valley intrusion. During the first phase of the program, 12,000 metres will be drilled. Then, during phase two, an additional 5,000 metres will test the south contact. Drilling is expected to last 4-6 months.
The River Valley property covers a large portion of the River Valley gabbro-anorthosite layered intrusive. Last summer’s program consisted of line-cutting, geological mapping and sampling, as well as ground magnetic and induced-polarization (IP) geophysical surveys. Exploration outlined an intrusive complex that is well-layered and mineralized. It is also reported to host a wide variety of mafic-to-ultramafic rock types.
A zone of sulphide mineralization up to 100 metres wide was detected by the sampling and IP survey. Contact-style mineralization was discovered in an inclusion-bearing zone striking parallel to the marginal contact over a distance of 4.5 km. The mineralization is hosted in a fine-to-coarse-grained gabbronorite, along with inclusions of mafic pegmatite and country rock xenoliths. A well-defined layer of olivine gabbronorite marks the base of the sulphide zone and represents a prominent stratigraphic marker. Sulphides are reported to consist almost exclusively of chalcopyrite and pyrrhotite occurring as fine-to-coarse-grained disseminations and blebs and in fine layers or bands.
The zone of mineralization is significantly enriched in PGMs. Most of surface grab samples ranged from trace to 5.6 grams combined platinum-palladium-gold. The highest grab samples assayed 5.9 grams palladium, 4.2 grams platinum and 0.6 gram gold.
Implats can earn a 60% interest in the River Valley property by spending $6 million over five years and making cash payments totalling $255,000.
In September 2000, Mustang granted
To earn its interest, Falco must spend $5 million on exploration over four years. The East Bull Lake property covers a good chunk of a gabbro-anorthosite intrusive, part of a rift-related belt of early-Proterozoic layered intrusions, near Sudbury. The principal exploration target is bulk-tonnage contact-style mineralization occurring in a layer at or near the margin of the East Bull Lake intrusion. Mustang has identified 20 km of favourable horizon along the intrusion’s southern margin.
To date, 31 holes have been drilled on the property. The best intercepts included 12 metres of 2.5 grams combined PGMs and 20 metres of 1.6 grams PGMs.
The exploration budget for the period October 2000 to November 2001 is $850,000. Work will include airborne and ground geophysics, sampling and winter drilling. Mustang is the operator.
In addition, Mustang entered into a joint venture with
In related news, Mustang picked up 951 mining claim units on the southern end of the Lake Timiskaming structural zone near Sudbury. The claims are considered prospective for diamonds.
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