Honduras

The Company's concessions cover more than 4,400 Hectares of strategically located and on trend with world class gold mines in the prolific Central American gold belt. More than 22 million ounces of gold and 220 million ounces of silver have been produced from several major mines along with numerous smaller operations across the region including El Limon, La Libertad, Marlin and San Andreas.

Major Gold Mines in Area (2010 Prod)

San Andres, Honduras 75,000 oz/year

El Limon, Nicaragua 48,000 oz/year

Bonanza, Nicaragua 31,000 oz/year

La Libertad, Nicaragua 80,000 oz/year

Marlin, Guatemala 300,000 oz/year

The region containing Honduras and Nicaragua hosts a number of mines and mineral deposits with a similar style of mineralization. On the Mustang concessions, there are a series of discontinuous veins and breccia zones which are all part of a single main continuous ENE trending structure.

Quartz constitutes more than 90% of the ore. Sulphide mineral content is relatively high, consisting mainly of pyrite with minor chalcopyrite.

Individual veins have been recognized to have strike lengths of 150 to 300 m. Major veins can have widths of from 1.5 to 3.0 m. Grades range from 1 to 15 g/T gold, with "clavos" (small high grade pockets) of up to several thousand tonnes and up to 200 g/T gold.

In 1996-97, a mining consortium headed by Battlemountain Gold (Bought by Newmont in 2000) explored the Choluteca area and identified the richest gold-potential areas for future detailed study. Mustang has control of the most prospective of these areas, including Manto and Potosi/Tajo.