Project Overview

Musgrave Minerals is dedicated to discovering new deposits of economic mineralisation and growing its gold resource base using systematic, well-resourced exploration methods and programs. Musgrave Minerals is focused on its key Cue Project in the Murchison Province of Western Australia but has an additional project in the Musgrave region of South Australia (Figure 1).

Figure 1: Musgrave Minerals Tenement Locations

Cue Project

Musgrave commenced exploration on the Cue Project in February 2016 and subsequently acquired 100% of the key tenure at the Project in August 2017.

The Cue Project consists of the Moyagee Gold southern area and Hollandaire Copper northern area, in the highly prospective Murchison Province of Western Australia. The project has significant upside gold potential highlighted by Musgrave’s recent gold discoveries and new high-priority targets.

Musgrave made a new significant gold discovery at Cue in 2020, the Starlight discovery. The high grade, near-surface gold mineralisation at Starlight has been a game changer for the project with the new discoveries of Starlight and White Light likely to have a huge positive influence of the economics of future development.  Musgrave has grown the Break of Day resource to 797kT @ 10.2g/t Au for 262,000oz contained gold (see MGV ASX announcement 11 November 2020, “Break of Day High-Grade Mineral Resource Estimate”).

Musgrave’s intent is to commence development studies to determine the underlying base value of it’s current resource base while continuing to  grow the resource base and discover new economic mineralisation that will further enhance a profitable gold development.

Break of Day is still open at depth on multiple lodes and there is also significant upside at the Lena deposit where Musgrave announced a Mineral resource update in February 2020. New insights derived from the re-interpretation of the Break of Day ore system has highlighted the huge upside within the belt. We have generated a number of new targets following the learnings from the Starlight discovery and are implementing these by testing a range of new targets within the belt. Initial results are very encouraging with further discoveries a high priority.

Gold discoveries such as Lake Austin North on the Evolution Joint Venture tenure show geological signs of being large, well mineralised gold systems and together with the new discoveries on the 100% MGV tenure highlight the upside potential of the Project.

In March 2019 Musgrave entered into an Option Agreement to acquire 100% of the non-alluvial gold rights to the Mainland Project directly adjacent to our 100% owned tenure at Cue. Mainland has seen very limited basement drilling but has produced significant quantities of alluvial gold.

In September 2019 Musgrave announced that it had entered into an Earn-In and Joint Venture Exploration Agreement with Evolution Mining Limited over a select area of Lake Austin and surrounds of the Cue Project in the Murchison District of Western Australia. The Evolution JV excludes all the known resources at Cue (including Lena and Break of Day) and the Mainland option area. Evolution can earn a 75% interest in the JV Area by sole funding A$18 million on exploration over a five-year term with a minimum commitment of A$4 million in the first two years. Musgrave is manager of the JV during the initial period.

A joint venture agreement has been executed with Cyprium Australia Pty Ltd were Cyprium holds an 80% interest in the non-gold rights over the northern tenements at the Cue Project. Musgrave will retain the gold rights to gold only deposits on the tenure and a 20% free carried interest to Definitive Feasibility Study over the non-gold rights.

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

11 November 2020 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 3,1380 3.0 301 3,286 3.4 358 6,42 3.2 659

Cue Gold Project

The Cue Gold Project hosts a combined JORC (2012) and JORC (2004) compliant total Mineral Resource base of 6.4Mt @ 3.2/t Au for 659koz contained gold within a number of separate deposits: The Break of Day and Lena deposits host the majority of the gold resources (refer MGV ASX announcement 11 November 2020,  “Break of Day High-Grade Mineral Resource Estimate”).

The Break of Day resource estimate has recently been updated following the high-grade near-surface Starlight and White Light lode. The mineralisation is currently open down plunge on a number of lodes.

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 450 12.1 176,000
Inferred 350 7.7 86,000
Total 797 10.2 262,000

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

Significant drilling results from Break of Day include:

  • 77m @ 3g/t Au from 7m (20MORC058) – Starlight Lode
  • 31m @ 8g/t Au from 37m (20MORC037) – StarlightLode
  • 6m @ 7g/t Au from 211m (20MORC050) – White Light Lode
  • 5m @ 5g/t Au from 138m (16MORC043) – Twilight Lode
  • 6m @ 8g/t Au from 158m (16MORC004) – Velvet Lode
  • 21m @ 21.5g/t Au from 157m (16MORC026) – Lode13

In February 2020 Musgrave announced a significant update to the Lena Mineral Resource.

Lena Mineral Resource by JORC Classification

JORC 2012 Classification Tonnage (‘000s) Au (g/t) Ounces Au
Indicated 2,253 1.7 121,000
Inferred 2,053 3.1 204,000
Total 4,305 2.3 325,000

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

Competent Person’s Statement

Exploration Results

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled and/or thoroughly reviewed by Mr Robert Waugh, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Member of the Australian Institute of Geoscientists (AIG).  Mr Waugh is Managing Director and a full-time employee of Musgrave Minerals Ltd.  Mr Waugh has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Waugh consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 Mineral Resources

The Information in this report that relates to Mineral Resources at Break of Day and Lena is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr Payne is a full-time employee of Payne Geological Services.  Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.  Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 The information in this report that relates to the Rapier South, Jasper Queen, Gilt Edge, Leviticus and Numbers Mineral  Resource and Ore Reserve estimates is extracted from the report created by Silver Lake Resources Limited entitled “Mineral Resources and Ore Reserves Update”, 26 August 2016 and is available to view on Silver Lake’s website (www.silverlakeresources.com.au) and the ASX (www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially effects the information included in the original market announcement and, in the case of estimates of Minerals Resources and Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented, have not been materially modified from the original market announcement.

 The information in this report that relates to Mineral Resources or Ore Reserves for the Hollandaire deposit is an accurate representation of the available data and is based on information compiled by external consultants and Mr Peter van Luyt who is a member of the Australian Institute of Geoscientists (2582). Mr van Luyt is the Chief Geologist of Cyprium Metals Limited. Mr van Luyt has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking to qualify as a Competent Person (CP). Mr van Luyt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

 

Lake Austin North

In September 2019 Musgrave announced that it had entered into an Earn-In and Joint Venture Exploration Agreement with Evolution Mining Limited over a select area of Lake Austin and surrounds (JV Area) of the Cue Project in the Murchison District of Western Australia.  The JV Area excludes all the known resources including Lena and Break of Day and the Mainland option area. Evolution can earn a 75% interest in the JV Area by sole funding A$18 million on exploration over a five-year term with a minimum commitment of A$4 million in the first two years. Musgrave will manage the JV during the initial period.

Following initial aircore drilling in March-June 2018 a regional gold regolith “halo” was identified 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
  • 9m @ 2.0g/t Au from 85.8m (19MODD013)

The basement mineralisation has now been defined over a strike length of 500m and is open to the north, south and down dip. Evolution have committed to a large regional aircore drilling program (>40,000m) and basement follow-up diamond drilling.

Aircore drilling has extended the A-Zone gold “halo” over a strike of more than 3km where it remains open to the north. This regional scout geochemical drilling has also defined multiple zones of regolith gold anomalism that now have a combined strike extent of >8km.  This suggests the likelihood of multiple basement sources for the dispersed regolith gold. Further drilling is required.

An economic gold deposit may have a regolith footprint of only a few hundred metres.

Hollandaire Copper Project

The Hollandaire Copper Project was discovered by Silver Lake Resources Limited in 2011 and hosts a JORC (2012) compliant total Mineral Resource Estimate of 2.8Mt @ 1.9% Cu for 51,500t of contained copper and 574,000oz contained silver  @ 6.4g/t Ag (refer CYM ASX announcement 29 September 2020, “Hollandaire Copper-Gold Mineral Resource Estimate”).

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.

Cyprium Australia have acquired 80% of the rights to these resources. Musgrave will retain a 20% free carried interest in the non-gold rights and retains a 100% in the gold rights for gold dominant deposits.

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.