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It is most definitely a mountain bike/ all terrain bike
The tyres are later though but very good off road
inexternal means its welded/ braised internally
As Mark said, Peugeot/Motobecane/MBK used a process with preformed internal brazing, which meant most of the braze was on the inside and led to much cleaner looking (and they claim stronger) joints. I remember seeing a really good article/flyer, describing the process, but I can't find it now - it may have been on paper, rather than digital .... I think that's how things used to be read, a very long time ago. Anyway, these give a little illustration:
I really apreciate the look and it's one of the reasons I've owned a couple of 531 Peugeot frames.