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 and Hollandaire Copper Projects in the highly prospective Murchison Province of Western Australia. The project has significant upside potential with extensional 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 near term development scenario. Recently, 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 along strike with significant potential to grow the resource.  New gold targets such as Louise together with the strong copper results at Hollandaire and the new Mt Eelya copper-gold-zinc discovery highlight the upside potential of the project.

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. Aun ‘000s
Total Project
2,269  2.84  202  2,623 2.84 234 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 14 July 2017, “Resource Estimate Exceeds 350koz Gold” and SLR ASX announcement 26 August 2016: “Mineral Resources and Ore Reserves Update”).

Break of Day is an exciting new high-grade gold discovery with huge potential to grow through further drilling. The mineralisation is currently open along strike 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

Further drilling is required to test both extensional and new targets. The high-grade gold mineralisation at the Break of Day prospect is a focus for further exploration with new drilling programs currently being planned. 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 strike length in excess of 300m. The mineralisation is open down plunge and along strike.

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.

A number of other significant gold targets remain untested on the tenements including significant gold targets at Laterite Hill, Vostock and Lady Stardust.

Further drilling is required to test these targets.

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 the wholly owned Corunna Project in the Southern Gawler Craton of South Australia. 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 Minerals has built on the strong relationship with the APY people that our cornerstone investor companies have developed.

Historically, exploration activities in the region have been restricted, but access has improved considerably in recent times. We currently hold one granted exploration licence covering an area totalling more than 1,900km2 and 16 exploration licence applications.

Mimili Project

Musgrave Minerals’ exploration team has completed multiple drilling campaigns in the Musgrave since listing and has drilled massive nickel sulphide in the Pallatu area. The Company has also identified a nickel-copper gossan at the Zarek target and zinc-copper mineralisation at Roslin on the Mimili Project. The Company is currently looking for a partner to accelerate exploration in the Musgrave region.