Mustang Minerals Corp.( TSXV:MUM, Frankfurt:NJF) is focused on development of the Makwa Nickel Project in Manitoba Canada and is an active exploration company. At Maskwa, in May 2008 ,the Company received positive results from its prefeasibility study at their open pit nickel project.Micon Engineering concluded:"the Maskwa Project contains an economic mineral reserve and warrants continued development to the full feasibility stage".
Mustang announced an update to the Makwa Project Economics in March 2010. In February 2010 a revised Mineral Reserve was announced. The Probable Reserve (diluted ) estimate was 9.855Mt grading 0.54% Ni, 0.11% Cu, 0.02% Co and 0.434/t (Pt plus Pd). ( Micon International )
The reserve was updated with revised metal prices including Nickel (USD 9.00/lb), Copper (USD 3.00/lb), Cobalt (20.00/lb), Platinum (1500.00/oz), Palladium (375.00/oz). A dollar exchange rate of 0.90US equaling 1.00CDN was used. The nickel price and exchange rate were within the sensitivity range examined in the Prefeasibility Study of May 2008.
Key findings of the updated economics included:
| Nickel net cash cost | $US/lb | 3.81 |
| Nickel cash cost including byproduct credits | $US/lb | 2.69 |
| Project operating profit pre-tax | $CDN000 | 322,980 |
| Project operating profit after tax | $CDN000 | 263,286 |
| Pre-production capital | $CDN000 | 129,449 |
| Project IRR pre-tax % | 18.9 | |
| Project IRR after tax % | 14.6 | |
| Project NPV 7% pre-tax | $CDN000 | 76,210 |
| Project NPV 7% after tax | $CDN000 | 43,883 |
Mustang has an ongoing exploration program focused on Makwa, Mayville and other properties in the project area.