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Mustang Geothermal announces acquisition of additional concessions in Peru

Near Condoroma, South Peru (source: flickr/ kindsir, creative commons)
Alexander Richter 7 Dec 2011

U.S. geothermal development company Mustang Geothermal announces the acquisition of three additional geothermal exploration concessions in southern Peru. The concessions properties are Atecata, Coline and Condoroma South.

In a release earlier this week, U.S. based Mustang Geothmal Company (OTCBB: URXE) “announces that it has acquired three additional geothermal exploration concessions in southern Peru through the government application process. The Atecata, Coline, and Condoroma South properties are located in the Departments of Puno and Cusco, respectively and each comprises an area of 900 hectares.

The new Condoroma South concession is contiguous with the Company’s existing flagship Condoroma Project and forms an 1800 hectare unit in an exciting development area.

The Condoroma exploration area is located near the settlement of Chaquelles 29 kilometers southeast of the Swiss based Xstrata plc’s Antapaccay copper project. In 2010 Xstrata plc Board approved an investment of US$1.47 billion to develop the Antapaccay copper project as a major long-life, low cost brownfield expansion to the Tintaya copper mine.

The Condoroma concessions are centered on a string of active thermal springs three kilometers in length with the measured surface temperature of 58 degrees C and significant observed water discharge. Based on the geology of the area, proximity of recent volcanic vents and geophysical/geospatial data used to evaluate the background of the potential properties.

The Company is excited about the Condoroma Project because of the geothermal potential of the area and its location relative to major commercial mining development. Rural and commercial electrical consumers including the mining industry are in need of additional electrical power sources and it is Mustang Geothermal’s goal to provide a source of clean, renewable energy to these consumers.

The Atecata and Coline properties are located near the small village of Pinaya in a mineral-metals district that has great potential for commercial mining development. Multiple thermal springs occur on each of the properties with temperatures recorded to 52 degrees C.

The Company is excited about these results and the progress of its exploration program in Peru.

Peru produces 45,500 Giga watt hours (GWh) of electrical power (2010 est.) with 74.8 % and 24.5% coming from hydro and fossil fuel, respectively. Currently no geothermal power plants are in operation in Peru.