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Mustang Geothermal starts exploration work at Condoroma project in Peru

Near Condoroma, South Peru (source: flickr/ kindsir, creative commons)
Alexander Richter 24 Jun 2011

Mustang Geothermal Corp. has started exploration work at its Condoroma-Chaquelles geothermal concession in the south of Peru, South America.

Announced today by the company, Mustang Geothermal Corp. (OTCBB: URXE) has started exploration at its Condoroma-Chaquelles geothermal concession in southern Peru.

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.

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.

The Condoroma exploration concession consists of a 900 hectare parcel located in the Department of Cusco 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 concession is 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.

Mustang believes that a significant geothermal potential exists in the area and is poised to embark on rapid exploration and development to meet the growing power needs in the region. The concession is close to the major power grid and with the estimated resource potential could significantly aid in producing abundant, clean and renewable energy to support both rural and commercial consumers.

Mustang Geothermal owns a 100% interest in 8,041 hectares of Federal geothermal leases in six project areas in the state of Nevada and holds 3,600 hectares of geothermal exploration concessions in four project areas (Banosdel Inca, Paclla, Ninobamba, & Condoroma) in Peru. Mustang also owns a 100% interest in the La Jara Mesa Extension uranium property consisting of 137 unpatented mining claims in the Grants Mining District, Cibola County, New Mexico.”

Source: Company release via PR Newswire