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)
CIM Definition Standards have been followed for classification of Mineral Resources
Mineral Resources are reported at a net smelter return (NSR) cut-off value of C$15/tonne at Mayville and C$20.64/tonne at Makwa
At Mayville, NSR values are calculated in C$ 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.
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.
Totals may not add correctly due to rounding.
Mineral Resource that are not Mineral Reserves do not have demonstrated economic viability.
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.