The Cue Project is a joint venture with Silver Lake Resources. Musgrave completed the Stage 1 expenditure of the Cue Project Farm-In and Joint Venture Agreement in February 2017 to earn a 60% interest in the Project and has elected to proceed to Stage 2 of the Cue Joint Venture whereby the Company can increase its interest by 20% to 80%.
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 a new and exciting opportunity for Musgrave to extend existing resources and discover new economic mineralisation that could underpin a profitable near term development scenario. Recently, exciting high grade gold results have been received at Break of Day and Lena. Together with the copper results at Hollandaire West as well as the new Mt Eelya copper-gold discovery highlight the upside potential of the project.
Moyagee Gold Project
The Moyagee Project hosts a combined JORC (2012) and JORC (2004) compliant total Mineral Resource base of 1.9Mt @ 2.0g/t Au for 126,900oz contained gold within four separate deposits, Lena, Leviticus, Numbers and Break of Day (refer SLR ASX announcement 26 August 2016: “Mineral Resources and Ore Reserves Update”). Further drilling is required to test both extensional and new targets. Recent high grade gold identified in drilling at the Break of Day prospect is a focus for further exploration with new drilling programs currently being planned. Recent drilling results from Break of Day include:
- 21m @ 21.5g/t Au from 157m (16MORC026);
- 5m @ 53.5g/t Au from 138m (16MORC043);
- 6m @ 45.5g/t Au from 99m (17MORC002).
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 to the north and south.
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 which 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.
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.
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 two granted exploration licences covering areas totalling more than 4,200km2 and 16 exploration licence applications.
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.