🕐26.05.14 - 14:27 Uhr
MUSTANG FILES NI 43-101 PEA
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Mustang Files NI 43-101 PEA on Nickel-Copper-PGM Project in Southeastern
Manitoba
Mustang Minerals Corp.
(TSXV:MUM) ("Mustang" or the "Company") today
announced it has filed the National Instrument 43-101 compliant Technical
Report on the Preliminary Economic Assessment (the "PEA") of the
Mayville-Makwa Project (the "Project) at www.sedar.com.
The summary results
of the PEA were announced April 8, 2014.
RPA Inc.
is the independent third
party that authored the PEA.
PEA Operational Overview
The PEA proposed the mining of the mineral resources located in southeastern
Manitoba by two open pits.
Average annual production of metals concentrate
are 3,600 tonnes per annum nickel and 8,700 tonnes per annum copper along
with 9,800 ounces platinum group metals per annum.
The PEA outlines the
mining of the Makwa Nickel Deposit first followed by the Mayville Cu-Ni
Deposit with milling operations located at the Mayville site.
Project Economics
Nickel production from the Project is higher in the first four years with
the mining of the Makwa deposit.
The following table outlines a base case
analysis based on the assumptions set out in the PEA along with sensitivity
to nickel price.
Description
-20% Nickel
Price
(Decrease)
Base Case
+20% Nickel
Price
(Increase)
Nickel US$ (lb)
US$6.80
US$8.50
US$10.20
Copper US$ ( lb)
US$3.40
US$3.40
US$3.40
Palladium US$ (oz)
US$800
US$800
US$800
C$/US$ Exchange Rate
$0.90
$0.90
$0.90
Operating Cashflow ( millions )
C$441
C$637
C$832
Initial Capex ( millions )
C$208
C$208
C$208
Total Capex incl.
Sustaining
C$300
C$300
C$300
Pre-tax NPV at 7.5% ( millions )
(C$14)
C$109
C$232
Pre-tax IRR at 7.5% (millions )
6%
17%
28%
After tax NPV at 7.5% ( millions )
(C$16)
C$97
C$194
After tax IRR at 7.5% ( millions )
6%
16%
25%
The PEA is preliminary in nature, includes inferred mineral resources that
are considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral reserves
and there is no certainty the PEA will be realized.
Project Mineral Resource Estimates
The portion of the measured mineral resources, indicated mineral resources
and inferred mineral resources used for evaluation in the PEA is shown in
the following table:
MINERAL RESOURCE SUMMARY AS OF NOVEMBER 27, 2013
Mustang Minerals Corp.
- Makwa-Mayville Project
Category and
Deposit
Tonnes
( Mt)
Ni
(%)
Cu
(%)
Pt
(g/t)
Pd
(g/t)
Au
(g/t)
Co
(%)
Indicated
Makwa
7.2
0.61
0.13
0.10
0.36
N/A
0.01
Mayville
26.6
0.18
0.44
0.05
0.14
0.05
N/A
Total Indicated
33.8
0.27
0.37
0.06
0.19
N/A
N/A
Inferred
Makwa
0.7
0.27
0.08
0.05
0.14
N/A
0.02
Mayville
5.2
0.19
0.48
0.06
0.15
0.04
N/A
Total Inferred
5.8
0.19
0.43
0.06
0.15
N/A
N/A
Notes:
1.
CIM Definition Standards have been followed for classification of Mineral
Resources
2.
Mineral Resources are reported at a net smelter return (NSR) cut-off
value of C$15/tonne at Mayville and C$20.64/tonne at Makwa
3.
At Mayville, NSR values are calculated in C$ using factors of $51 per %
Cu and $41 per % Ni.
These factors are based on metal prices of US$3.40/lb
Cu and US$8.50/lb Ni, estimated recoveries and smelter terms, and a US$/C$
exchange rate of 0.97.
4.
The Makwa Mineral Resources are estimated using metal prices of
US$3.40/lb Cu and US$8.50/lb Ni, estimated recoveries and smelter terms, and
a US$/C$ exchange rate of 0.97.
The NSR factors used are: $87.33 per % Ni,
$29.65 per % Cu, $38.25 per % Co, $0.14 per g/t Pt and 0.08 per g/t Pd.
5.
Totals may not add correctly due to rounding.
6.
Mineral Resource that are not Mineral Reserves do not have demonstrated
economic viability.
Exploration
The Company will soon commence exploration activities which will include
trenching, geological mapping and sampling at the former producing Dumbarton
mine which is adjacent to the Makwa Deposit.
The Dumbarton Mine horizon was
highlighted in the PEA as a potential source of additional open pit nickel
feed for the Project.
Based on the results of that program and availability
of financing the Company will follow with drilling at the Project as well as
implementing other recommendations made in the PEA.
Carey Galeschuk P.Geo.
is the National Instrument 43-101 Qualified Person
for Mustang Minerals Corp.
and has approved the contents of this release.
For more information online please view the Mustang website at
www.mustangminerals.com
Western Areas Ltd (ASX:WSA) owns a ~19% equity interest in Mustang.
To find out more about Mustang Minerals Corp.
(TSX-V: MUM)
visit our website at www.mustangminerals.com
or:
Telephone: 416-955-4773 email:
We seek safe harbour.
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 Companys 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 risk, uncertainty of
production and capital 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 Companys Management Discussion and Analysis for the
most recent financial period and Material Change Reports filed with the
Canadian Securities Administrators and available at
www.sedar.com .
Neither the TSX Venture Exchange nor it Regulations Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this press
release.
For Immediate Release
May 26, 2014
Toronto, Ontario
Shares Outstanding: 229,669,894