NEW YORK, Feb. 29, 2012 /PRNewswire/ -- Mustang Alliances Inc. (OTCBB: MSTG) ("Mustang") is pleased to announce an update on the construction of the pilot plant currently being built on the companies concession.
Mustangs engineering and ground team is making significant progress working on completing the logistical aspects of the property as well as the assembly of the production equipment to allow for operations to commence.
The first area on the concessions the company has targeted for operations is the Tajo-San Antonio project, which has significant potential for not only the development of a large high-grade gold deposit but for immediate production from the pilot mill being constructed on-site. The excellent gravity recovery characteristics of the ore (+80%), favorable mining configuration and the high-grade nature of the deposit are all positives for development of the initial ore zone while underground exploration is developing additional ounces. Mustang is evaluating the quality of adits, portals and underground tunnel workings for production planning purposes. Metallurgical samples continue to be collected from Mustang concessions located within the Choluteca Mining District. The samples will form the basis for ongoing Mineralogical and Metallurgical work as Mustang continues to advance towards production.
Mustang has arranged to enter immediate production via a purchase of mining equipment .The arrangement fast tracks Mustang's into production and in a cost effective manner. The mine production plans will provide employment and development in the Choluteca Region and will be conducted in accordance with international environment, health, safety and social standards. Mustang's planned commencement of gold production comes at a time of rapid emergence of the Honduran economy, fuelled in part by recent initiatives by the Honduran Government to amend the Mining Law, concluding free trade agreements with Canada and a parliamentary democracy.
In addition to planned production and cash flow from mining operations, Mustang will continue a modern, large scale in depth exploration of Mustang's properties, targeting the delineation and discovery of major gold deposits. The next exploration areas to be drilled are targets defined by geophysics and geological mapping in late 2011.
Leonard Sternheim, Mustang's Chief Executive Officer, states, "Mustang is obviously having a transformational year with the company's recent announcement regarding production plans. As we plan our growth and transition into mining production, we should benefit immensely from our managements international experience and proven track record with both major mining companies and junior explorers. This combination will serve Mustang well as it targets production alongside of continued aggressive exploration of the Choluteca District."
ABOUT MUSTANG ALLIANCES INC.
Mustang (OTCBB: MSTG) is a junior mining company with a focus on the acquisition and development of precious metals properties in Honduras. Mustang has 5 concessions totaling 4,400-hectares under agreement in the Choluteca District of Honduras. Concessions are on trend to several world class gold mines in the Central American gold belt, such as the El Limon mine, Nicaragua, that has produced over 3 Million Ounces of gold to date. The Mustang Concessions are in an area that has been actively worked by artisanal miners for the past 200 years
Certain statements in this announcement including statements such as "believes," "anticipates," "expects" and all similar statements regarding future expectations, objectives, intentions and plans for mineral exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Mustang Alliances to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-KSB, for the year ended December 31, 2010 and its Quarterly Report on Form 10-Q for the period ended September 30, 2011. Mustang Alliances Inc. undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
SOURCE Mustang Alliances Inc.