Project Overview

Musgrave Minerals is dedicated to discovering new deposits of economic mineralisation using systematic, well-resourced exploration methods and programs. Musgrave Minerals is focused on its key Cue Project in the Murchison Province of Western Australia with additional projects in the Musgrave and Southern Gawler Craton of South Australia (Figure 1).

Figure 1: Musgrave Minerals Tenement Locations

Cue Project

Musgrave commenced exploration on the Cue Project in December 2015 and subsequently acquired 100% of the key tenure within the Project in August 2017.

The Cue Project consists of the Moyagee Gold southern area and Hollandaire Copper norther area in the highly prospective Murchison Province of Western Australia. The project has significant upside gold potential following recet gold discoveries and new high-priority targets. The Cue Project presents an exciting opportunity for Musgrave to extend existing resources and discover new economic mineralisation that could underpin a profitable  development. A new high-grade resource was estimated for the Break of Day deposit following the discovery of high-grade gold in 2016.  Break of Day is still open at depth with significant potential to grow the resource.  New gold discoveries such as Lake Austin North show geological signs of being large, well mineralised gold systems capable of delivering significant resource upgrades.

In July 2018 Musgrave signed a non-binding Term Sheet with Westgold to negotiate a near term profit sharing (50:50) arrangement where Westgold will mine and process ore from the existing Break of Day and Lena resources for the mutual benefit of both parties.

The Cue Project hosts a combined estimated Indicated and Inferred Mineral Resource of:

14 July 2017
Indicated Resources
Inferred Resources
Total Resources
Deposit Tonnes ‘000s Au Gradeg/t Totaloz. Au‘000s Tonnes ‘000s Au Gradeg/t Totaloz. Au‘000s Tonnes ‘000s Au Gradeg/t Totaloz. Au ‘000s
Total Project
2,206  2.84  202  2,623 2.84 239 4,830 2.84 441

Moyagee Gold Project

The Moyagee Project hosts a combined JORC (2012) and JORC (2004) compliant total Mineral Resource base of 3.87Mt @ 3.07g/t Au for 382,0000oz contained gold within four separate deposits: Break of Day, Lena, Leviticus, and Numbers (refer MGV ASX announcement 15 October 2018 “Annual Report”).

Break of Day is a new high-grade gold discovery with potential to grow through further drilling. The mineralisation is currently open and down plunge.

Break of Day Mineral Resource by JORC Classification and reported above a cut-off grade of 3.0 g/t Au

JORC 2012 Classification Tonnage (‘000s) Au (g/t) Ounces Au
Indicated 445 7.73 111,000
Inferred 423 6.54 89,000
Total 868 7.15 199,000

* Due to the effects of rounding, the total may not represent the sum of all components

Significant drilling results from Break of Day include:

  • 21m @ 21.5g/t Au from 157m (16MORC026),
  • 15m @ 16.6g/t Au from 170m (17MORC050),
  • 14m @ 14.4g/t Au from 111m (17MORC044),
  • 11m @ 6.8g/t Au from 23m (17MORC001),
  • 6m @ 45.5g/t Au from 99m (17MORC002),
  • 5m @ 53.5g/t Au from 138m (16MORC043).

The Break of Day mineralisation consists of two parallel sub-vertical high-grade gold quartz lodes traced over a combined strike length in excess of 400m.  In July 2017 Musgrave announced a significant update to the near-surface Lena Resource.

Lena Mineral Resource by JORC Classification and reported above a cut-off grade of 1.0 g/t Au

JORC 2012 Classification Tonnage (‘000s) Au (g/t) Ounces Au
Indicated 1,288 1.69 70,000
Inferred 1,394 1.85 83,000
Total 2,682 1.77 153,000

* Due to the effects of rounding, the total may not represent the sum of all components

Mineral Resources and Ore Reserves

The information in this report that relates to Mineral Resources at Break of Day and Lena is based on information compiled by Mr Aaron Meakin. Mr Meakin is a full-time employee of CSA Global Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy. Mr Meakin has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Meakin consents to the disclosure of the information in this report in the form and context in which it appears.

New Lake Austin North Gold Discovery 

Following initial aircore drilling in March-June 2018 a regional gold regolith “halo” was identified over an area of approximately 700m x 300m at the A-Zone at the Lake Austin North target. Reverse circulation (RC) drilling intersected high-grade gold in discovery hole 18MORC039;  84m @ 1.7g/t Au from 84m including 36m @ 3.6g/t Au from 111m, including a higher grade core of 20m @ 6.1g/t Au from 116m.  Further RC results include 94m @ 2.2g/t Au from 156m (18MORC057), including 52m @ 3.8g/t Au from 198m and 29m @ 5.1g/t Au. Diamond drilling of the A-Zone at Lake Austin North has confirmed the RC drill intercepts and a northern strike and steep east dip to the mineralisation. Diamond drilling has intersected:

  • 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

The basement mineralisation is open to the north, south and down dip and diamond drilling is continuing at the A-Zone. The gold mineralisation occurs in a highly altered mafic sequence adjacent to the contact of a tonalite (granite) intrusive on the interpreted Break of Day/Lena shear approximately 3km north of 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 and 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 SLR ASX announcement 26 August 2016: “Mineral Resources and Ore Reserves Update”).

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.

Corunna Project

Musgrave has joint ventured the Corunna Project in the Southern Gawler Craton of South Australia to Petratherm Limited. Significantly, silver, lead, zinc and copper mineralisation has been identified in shallow aircore drilling over a strike extent of more than 300m and is open to the north and south.

Musgrave Province

The Musgrave Province is one of the last under-explored frontiers in Australia in terms of mineral exploration, and is prospective for a number of commodities. The centre piece is the recognition of, and access to, the under-explored potential of the Giles Complex, a 1080Ma aged mafic-ultramafic layered intrusive complex that hosts the massive Nebo-Babel deposit, a major nickel and copper sulphide deposit in the Western Australian portion of the province.

In South Australia, the Musgrave Province lies almost entirely within Anangu Pitjantjatjara Yankunytjatjara (APY) land (Aboriginal freehold land). Musgrave currently hold a number of exploration licence applications in the province.