Code-named Fennec, according to Mozilla's official wiki, their new mobile browser may be good to go as early as next week stating they are now "two patches away" from being ready to launch.
Here's a demo video posted on YouTube to give you a sneak peek.
The mobile browser will be very limited to only a couple of mobile device models in the beginning; namely the HTC Touch Pro or Nokia's N810 Internet Tablet. That should change very quickly.
p.s. A Fennec is a breed of fox. The Fennec fox lives in the Sahara Desert and is known for its small size. Uh huh, just a like a mobile device. Very clever, Mozilla. Is it me or does it also look like that little alien character from Lilo and Stitch.