Mustang Minerals and Western Areas Sign Agreement for Joint Venture at East Bull Lake Near Sudbury, Ontario

The Board of Mustang Minerals Corp. announce an agreement to explore the East Bull Lake Project, 80km west of Sudbury in Ontario, Canada.

Western Areas can earn a 65% interest in the project from Mustang Minerals by funding up to C$4.5M in two stages over five years. The project includes net smelter royalty interests. The main purpose of the joint venture is to drill out a number of high quality nickel-copper-platinum group metals (“PGM”) targets already defined by Mustang. Several of the targets coincide with highly anomalous sulphide hosted mineralisation in surface samples and in shallow drilling. The targets are also associated with previously unrecognised VTEM anomalies identified in a survey flown by Mustang in 2007.

East Bull Lake is a 20km long mafic intrusive complex which consists of two separate zoned intrusions joined by a 5km long feeder dyke (Figure 2). The project is considered to have excellent potential to host significant nickel/copper/PGM deposits within a world class metal province. The nearby Sudbury mining camp is the world’s largest nickel producer. Total production at Sudbury since the 1880′s, plus remaining ore reserves and mineral resources equates to approximately 18Mt nickel with significant copper/PGM credits.

Mineral rights covering the East Bull Lake intrusion have been held by Mustang since 1998. The project has also been the subject of several years of research by the Ontario Geological Survey. A 1993 Ontario Geological Survey Report (Open File Report 5849 by Peck, James Chubb et al) concluded that the “potential exists for extremely large tonnages of sulphide mineralisation, perhaps even massive sulphides (along the floor of the intrusion), which have platinum-group element-enrichment levels equating to reef environments.”

Western Areas is planning to commence drilling at four priority targets in October.

Mustang has recently completed a pre feasibility study on the Maskwa open pit nickel project in SE Manitoba. An updated mineral resource calculation incorporating recent drill data is planned as part of a full feasibility study for the project. Permitting activities are progressing along with stakeholder engagement and environmental baseline studies have been completed. Mustang has an active regional exploration program ongoing during the current spring/summer field season notably at its Fox nickel project north of Maskwa in Manitoba.

Western Areas owns approximately 17% equity interest in Mustang Minerals. The independent directors of both companies have approved the East Bull Lake agreement.
Website: www.mustangminerals.com