Cue Project

Musgrave Minerals Ltd entered into a Farm-In and Joint Venture Agreement with Silver Lake Resources Limited (ASX: SLR) for the Cue Project in November 2015. Musgrave acquired all of SLR’s interest in the Cue Project in August 2017 and now holds 100% of the key tenure and Mineral Resources.

The Cue Project consists of the Moyagee Gold and Hollandaire Copper areas in the highly prospective Murchison province of Western Australia (Figures 1 and 2).

Figure 1: Cue Project location plan

Figure 2: Prospect location map

Moyagee Gold Project

Lake Austin North

The Lake Austin North, A-Zone gold discovery is approximately 3km north of Break of Day on Lake Austin. The target was initially defined through the integration of newly acquired gravity data with the existing aeromagnetic data and some minor broad spaced historical regional aircore drilling and partial leach geochemistry.

The A-Zone mineralisation at Lake Austin North is located along the continuation of the Break of Day/Lena shear on the margin of a tonalite (granite) intrusive. To date basement RC and diamond drilling has only tested 250m of a potentially 1km long mineralised trend. Drilling results include:

RC drilling

  • 84m @ 1.7g/t Au from 84m (18MORC039), including 36m @ 3.6g/t Au from 111m, including 20m @ 6.1g/t Au from 116m.
  • 94m @ 2.2g/t Au from 156m (18MORC057), including 52m @ 3.8g/t Au from 198m and 29m @ 5.1g/t Au. Diamond drilling:
  • 20m @ 4.5g/t Au from 102.2m (18MODD005) and
  • 242m @ 1.0g/t Au from 61m (18MODD008), including 45m @ 3.3g/t Au from 70m and 5.8m @ 4.5g/t Au from 199.8m

Lake Austin North has the potential to be a large well-mineralised gold system with the mineralisation at A-Zone currently open to the north, south and at depth.

Multiple new gold targets have been developed on the lake for follow-up drill testing.

Figure 3: Prospect location map on gravity image

Figure 4: Plan showing drill holes completed at Lake Austin North, significant assay results and planned diamond drill holes, the tonalite intrusive and regolith aircore gold contours of gold in hole represented as grams of gold x metre thickness of intercept

Figure 5: Discovery Cross section 6939200mN at A-Zone, Lake Austin North showing latest drilling (a cross-section is a vertical section perpendicular to the line of mineralisation)

Break of Day and Lena

Musgrave successfully increased the Mineral Resources at Break of Day and Lena to a combined 353koz Au in July 2017. The Moyagee Project now hosts a combined JORC (2012) and JORC (2004) compliant total Mineral Resource base of 3.87Mt @ 3.07g/t Au for 382,000oz contained gold within four separate deposits, Break of Day, Lena, Leviticus and Numbers (refer Table 1 below and MGV ASX announcement 14 July 2017, “Resource Estimate Exceeds 350koz Gold” and 15 October 2018 “Annual Report”).

Multiple gold targets remain untested including a series of high priority regional targets on Lake Austin to the north of Break of Day and Lena.

Reverse circulation (“RC”) and diamond drilling has identified high-grade gold mineralisation at Break of Day including:

  • 21m @ 21.5g/t Au from 157m (16MORC026),
  • 6m @ 46.5g/t Au from 99m (17MORC002),
  • 15m @ 16.6g/t Au from 170m (17MORC050),
  • 14m @ 14.4g/t Au from 111m (17MORC044),
  • 11m @ 6.8g/t Au from 23m (17MORC001),
  • 5m @ 53.5g/t Au from 138m (16MORC043),
  • 3m @ 54.9g/t Au from 187m (16MORC041),
  • 5m @ 33.0g/t Au from 154m (16MORC048),
  • 4m @ 28.5g/t Au from 99m (17MORC053), and
  • 3m @ 38.6g/t Au from 274m (16MORC039).

(see ASX releases dated 10 October 2016, 18 October 2016, 3 November 2016, 9 November 2016, 17 March 2017, 20 April 2017 and 8 May 2017)

Diamond drilling has confirmed the gold mineralisation and includes:

  • 3.2m @ 26.6g/t Au from 238.5m (16MODD002),
  • 4.0m @ 9.6g/t Au from 231.0m (16MODD003), and
  • 6.6m @ 7.3g/t Au from 127.35m (16MODD001).

(see ASX release dated 30 January 2017; “Diamond Drilling Confirms High Grade Gold at Break of Day & Extends High Grade Gold at Lena”)

The mineralisation is interpreted to occur in vertical to steep westerly dipping, semi-parallel quartz lodes hosting high-grade gold with minor (1-2%) pyrite, within a basaltic stratigraphic sequence. The separation of the gold lodes varies along strike from 10 to 60 metres.

Musgrave’s goal is to define high-grade gold resources that will underpin a clear path to development.

Figure 6: Cross section 13300mN (local grid) at Break of Day

Hollandaire Copper Project

The Hollandaire Copper Project was discovered by Silver Lake Resources Limited in 2011 and hosts a JORC (2004) compliant total Mineral Resource base of 2.0Mt @ 1.9% Cu for 38,800t of contained copper, 2.7Mt @ 5.8g/t Ag for approximately 495,000oz contained silver, and 0.52Mt @ 1.35g/t Au for 22,500oz contained gold (refer Table 1 and SLR ASX announcement 28 August 2015; “Mineral Resources-Ore Reserves – August 2015”).

The Hollandaire and Hollandaire West deposits are tabular stratabound volcanic-hosted massive sulphide deposits (VMS). The mineralisation forms a moderate dipping zone of massive sulphide mineralisation averaging 10 metres thick that plunges to the south-west. Copper mineralisation is located approximately 50m from surface, and drilling to date indicates it is open to the south-west and at depth (Figure 2).

Historical drill intersections at Hollandaire include (refer SLR ASX announcement dated 10 November 2011; “High Grade Copper Discovery at Hollandaire”):

  • 9.3m @ 15.4% Cu, 2.0g/t Au & 29.0g/t Ag from 61 metres (drill hole 11HOD009)
  • 14.3m @ 7.8% Cu, 1.0g/t Au & 20.1g/t Ag from 109 metres (drill hole 11HOD0039)

Recent exploration by Musgrave Minerals at Cue has confirmed extensions to the Hollandaire West copper-gold mineralisation with its maiden drill hole returning:

  • 5m @ 2.46% Cu, 0.3g/t Au, 10.1g/t Ag

The discovery of massive sulphide copper-gold mineralisation at Mt Eelya with Musgrave’s maiden drill hole in this prospect demonstrated the upside of the Cue Project to host significant VMS style mineralisation. Subsequent drilling has intersected high-grade zinc mineralisation:

  • 8m @ 1.6% Cu, 0.6g/t Au, 4.5g/t Ag
  • 16m @ 3.1% Zn, 0.2% Cu, 0.1g/t Au and 2g/t Ag from 12 metres (17EPRC005), including
    • 2m @ 18.1% Zn and 0.5% Cu from 17 metres
  • 21m @ 1.9% Zn, 0.4% Cu, 0.5g/t Au and 6g/t Ag from 21 metres (17EPRC004), including
    • 4m @ 8.1% Zn and 1.5% Cu, 0.6g/t Au and 21g/t Ag from 17 metres

A number of coincident geochemical and electromagnetic targets have been identified for follow-up testing throughout the tenement package.

Figure 7: 3D schematic of the Hollandaire and Hollandaire West mineralisation and down-plunge targets. Red drill traces represent drill holes with down hole transient electromagnetic (DHEM) survey data. Surface moving loop transient electromagnetic (MLTEM) models are also shown on the image.

Figure 8: Massive Cu-Au sulphide targets shown on gridded aeromagnetic image

Table 1. Summary of JORC Resources and Reserves for the Project

Notes to Table 1:

The Break of Day and Lena Mineral Resources at Moyagee are produced in accordance with the 2012 Edition of the Australian Code of Reporting of Mineral Resources and Ore Reserves (JORC 2012). The remaining Mineral Resources and Ore Reserve estimates were first prepared and disclosed in accordance with the 2004 Edition of the Australian Code of Reporting of Mineral Resources and Ore Reserves (JORC 2004) and have not been updated since to comply with JORC 2012 on the basis that the information has not materially changed since it was last reported. For further details refer to Musgrave Minerals Ltd (MGV) ASX announcement 14 July 2017, “Resource Estimate Exceeds 350koz Gold” and Silver Lake Resources Limited (SLR) ASX Announcement 26 August 2016, “Mineral Resources and Ore Reserves Update”.