East Bull Lake Property

The Property is a 20km long mafic intrusive complex located 80km west of Sudbury, Ontario. It consists of two separate zoned intrusions joined by a 5km long feeder dyke (see map below). The project is considered to have excellent potential to host significant nickel/copper, PGM deposits located within a world class metal province. Since the 1880’s the Sudbury mining camp has produced over 16Mt nickel with significant copper/PGM credits.

Click here for the East Bull Lake PGM Property Location Map

Recent Exploration & Summary:
In May 2007, Mustang completed a detailed Geotech heliborne VTEM survey over the project and identified previously unknown VTEM anomalies which in several locations are associated with highly anomalous nickel-copper-PGM values in surface samples and drilling. Then in early 2008 initial drilling of the first VTEM target (Parisien Lake) yielded intersections that included 1.1m @ 9.3% copper and 12/5 g/t PGM from 89m down hole depth and 10m at 0.4% nickel at shallow depth. Historical drilling at East Bull Lake prior to Mustang’s involvement intersected 0.5m @ 3.9 % nickel in the central part of the intrusion.

Joint Venture Agreement signed with Western Areas NL:
In Sept. 2008, Mustang announced a joint venture agreement with Western Areas (TSX:WSA and ASX:WSA) which Western Areas can earn a 65% interest in the East Bull Lake project by funding up to C$4.5M in two stages over five years. The project includes net smelter interests with the main focus of the j/v to drill out a number of high quality targets already indentified by Mustang Minerals.

Simplified geology of East Bull Lake intrusion showing initial drilling targets and locations of
known copper/nickel sulphide and PGM mineralisation based on surface samples and drilling

Western Areas has targeted potential for sulphide hosted nickel-copper-PGM deposits with a number of VTEM conductors in three areas of the intrusive complex. These areas are as follows:

Ground based EM surveys (MLEM and FLEM) were completed over the Novick Lake prospect in the March Quarter. This work confirmed the VTEM anomalies and defined a 600m long north-east trending anomaly with an interpreted depth of 250m to the conductor. The data also indicates a second steep dipping east west conductor 300m south of the main conductor (see Novick Lake anomaly below).

A diamond drill program is proceeding to test the two main EM conductors identified at Novick Lake. Drilling is also planned to test the Sables VTEM anomaly.

NOVICK LAKE VTEM

Profiles from the VTEM survey over the Novick Lake prospect showing the
north east trending anomaly (red arrow) and southern anomaly (black arrow)

EAST BULL LAKE PHOTOS

Main Sulphide Zone, Parisien Deformation Zone, East Bull Lake Property

Net Textured sulphides from hole # 2 at East Bull, May 2008

Limited activity took place between 1950 and 1962 involving a number of mining and exploration companies that were exploring a portion of the property for copper and nickel deposits. The potential for PGM deposits on the property was not considered until the late 1980's, by which time the central part of the property (including the Moon Lake Target area) had been withdrawn from staking. In 1990, the Ontario Ministry of Northern Development provided funds to Laurentian University to study the mineral potential of intrusive rocks between Sudbury and Elliot Lake. These studies focused mainly on the East Bull Lake Intrusive. From 1990 to 1995 fieldwork including geological mapping, sampling (over 1,000 samples), and analysis of Atomic Energy of Canada's drill core was completed. Metallurgical and petrographic studies were also completed. The 1993 Ontario Geological Survey Reports concluded that the "potential exists for extremely large tonnages of sulphide mineralization, perhaps even massive sulphides (along the floor of the intrusion), which have platinum-group element-enrichment levels equating to reef environments."