Properties

Makwa Mayville Nickel Copper Project

Overview

The Makwa Mayville Project is located in the Bird River Greenstone Belt approximately 145 km from Winnipeg Manitoba. The project consists of two open pit NI 43-101 resources containing nickel copper platinum group metals and cobalt mineralization. A preliminary economic assessment (“PEA”) was completed in April 2014 and authorized by Roscoe Postle Associates Inc.  Based on the PEA the project is designed as a blast and haul open pit operation with ore hauled to a mill at the Mayville site. A flotation circuit producing separate copper and nickel concentrates would be produced.

The resource calculation associated with the PEA is presented in Table 1.

Table 1- Makwa Mayville Resource Calculation

MINERAL RESOURCE SUMMARY AS OF NOVEMBER 27, 2013

Mustang Minerals Corp. – Makwa-Mayville Project

Class 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.

The results of the PEA are summarized in Table 2.

Table 2

Makwa Mayville PEA results

                 Description

 Base Case

Nickel   US$ (lb)

$8.50

Copper US$ ( lb)

$3.40

Palladium US$ (oz)

$800

C$/US$ Exchange Rate

$0.90

Operating Cashflow  ( millions )

C$637

Capex  ( millions )

C$300

Pre-tax NPV at 7.5%  ( millions )

C$ 109

Pre-tax IRR at 7.5%  

17%

After tax NPV at 7.5% ( millions )

C$97

After tax IRR at 7.5%

16%

Recent Work Program and Future Plans

The Company recently completed a ground and borehole electromagnetic geophysical program at the Makwa site investigating the potential for additional nickel sulfide ore at depth. The results of the program are pending.

The Company plans to implement many of the recommendations of the PEA including additional metallurgical testwork on the Mayville Deposit. No analysis for the recovery of cobalt was completed for the Mayville Deposit.

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