NEW YORK, Feb. 3, 2012 /PRNewswire/ -- Mustang Alliances Inc (OTCBB: MSTG) ("Mustang") announced today the purchase of mine processing equipment for its Potosi property in Southern Honduras. The equipment consists of a ball mill, a crusher, 2 Falcon concentrators, and some earth moving equipment. Mustang will deploy this equipment at the Potosi Property as part of a pilot test program to determine the best gold extraction and production techniques.
Mustang expects the pilot test program to allow the Company to determine concentration ratios, expected recovery per ton, mining and milling costs. This will permit Mustang to establish the scope and equipment requirements for commercialization and move towards establishing commercial production. This is an internal company test and is not subject to independent oversight. Following successful completion of the test program, Mustang expects to do future testing following independent "Chain of Custody" protocols.
During 2011, Mustang completed considerable testing on the Potosi Property, including taking over 100 surface and near-surface samples and compiling historical data which includes over 1800m of drilling to depths ranging up to 125m. Based on those test results, the Company believes that certain defined mineralized areas of the property could support a small-scale test mining production of approximately 1000 oz of gold per month.
Mustang will continue to focus on its goal of short-term production. In addition to initiation of a test-mining program, the Company will continue to explore its concessions to define proven quantities of commercially extractable gold and silver, with the goal of completing a 43-101 resource report in the future.
Robert Faber, President stated, "We believe this pilot test program will provide us with critical information for the Potosi Property, as well as for other land holdings in Southern Honduras. With test-mining production imminent, we feel Mustang is poised to move to the next phase in its developme