TORONTO, ONTARIO, Jul 14 -- The Board of Directors of Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF) today is pleased to announce that Mustang Minerals has acquired an option on mining claims located in southeast Manitoba currently held by Tantalum Mining Corporation of Canada ("Tanco"). Tanco is Canada's sole producer of lithium, cesium and tantalum metals, and has been operating in Manitoba for over 40 years. Under the option agreement Mustang will focus on the nickel, copper and precious metal potential of the property while Tanco will retain rights to lithium, tantalum, cesium and rare earth elements.
The mining claims optioned by Mustang are located immediately south of Mustang's Mayville Property where Mustang has outlined a NI 43-101 open pit resource consisting of 9.2 million tonnes at 0.61% copper, 0.23% nickel and 0.43 g/t platinum group metals (PGM). The Mayville deposit is open along strike and at depth.
Historically the property has been the focus of exploration for lithium and tantalum since the late 1950's. Mustang plans to initiate a heliborne EM survey over the property as soon as possible.
"We are pleased to enter into this agreement with Tanco on a strategic piece of exploration ground near our Mayville resource" said Robin Dunbar President of Mustang. This will add to what we consider to be a highly prospective exploration package in our project area in southeast Manitoba where Mustang has two copper-nickel deposits suitable for open pit mining.
Terms of the Property Option Agreement
Mustang can earn a 100% interest in the base and precious metal rights (subject to Net Smelter Return Royalty) to the Property by completing option payments totalling $45,000. ($10,000 on signing) and making expenditures of $300,000 over a period of three years. In the first year, work expenditures of $12,600 are required.
About Mustang Minerals Corp.
Mustang Minerals is exploring and developing two open pittable deposits located in southeast Manitoba. A NI 43-101 reserve estimate completed in Feb. 2010 by Micon International Limited outlined 9.855 million tonnes in the Probable category containing 0.541% nickel, 0.113% copper 0.433 g/t PGM at the Makwa Project. The Mayville Project is located approximately 35 km by road from Makwa and has a NI 43-101 Indicated Resource of 9.227 million tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t palladium (see April 15, 2010 news release).
Ian Ward P.Eng, Senior Vice President of the Company, is the Qualified Person for the Mayville and Makwa project information and this press release.