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 with recent gold discoveries and new high-priority targets.

Musgrave’s intent is to grow the existing resources and discover new economic mineralisation that could underpin a profitable gold development. An initial high-grade resource was estimated for the Break of Day deposit in 2017 following the discovery.  Break of Day is still open at depth with significant potential to grow the resource highlighted by recent (Dec 2019) hits such as 45m @ 11.8g/t Au (19MORC037) in what has been named the Starlight link-lode.  There is also significant upside at the Lena deposit where Musgrave announced a Mineral resource update in February 2020. New gold discoveries such as Lake Austin North show geological signs of being large, well mineralised gold systems and together with the new Starlight link-lode discovery and 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. As part of the Agreement, Evolution subscribed for 18,587,361 ordinary shares in Musgrave through a share placement (“Placement”) at a price of $0.0807 per share. The placement price was set at the 30-day VWAP for Musgrave shares and represents a holding of 4.59% (undiluted) in the Company.

An option agreement has been executed with Cyprium Australia Pty Ltd were Cyprium can earn an 80% interest in the non-gold rights over the northern tenements at the Cue Project. Musgrave will retain the gold rights to the tenure and a 20% free carried interest to Bankable Feasibility Study on the non-gold rights.

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 3,170 2.5 253 3,282 3.4 360 6,453 3.0 613

Cue Gold Project

The Cue Gold Project hosts a combined JORC (2012) and JORC (2004) compliant total Mineral Resource base of 6.45Mt @ 3.0g/t Au for 613koz 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 17 February 2020 “Lena Resource Update”).

Break of Day is a new high-grade gold discovery with potential to grow through further drilling. The mineralisation is currently open down plunge and the new Starlight link-lode has been identified in recent drilling with high-grade gold intercepts like 45m @ 11.8g/t Au (19MORC037), 42m @ 5.6g/t Au (20MORC013) and 6m @ 55.8g/t Au (20MORC012).  These are outside the current resource and have the potential to add significant upside to the deposit. Further drilling is being planned.

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 7.7 111,000
Inferred 423 6.5 89,000
Total 868 7.2 199,000

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

Significant drilling results from Break of Day include:

  • 11m @ 54.0g/t Au from 217m (17MORC084)
  • 21m @ 21.5g/t Au from 157m (16MORC026),
  • 15m @ 16.6g/t Au from 170m (17MORC050),
  • 14m @ 14.4g/t Au from 111m (17MORC044),
  • 30m @ 11.3g/t Au from 120m (17MORC127),
  • 6m @ 45.5g/t Au from 99m (17MORC002),
  • 5m @ 53.5g/t Au from 138m (16MORC043),
  • 45m @ 11.8g/t Au from 144m (19MORC037)

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.

Significant intercepts from the new Starlight link-lode at Break of Day outside the current resource include:

  • 45m @ 11.8g/t Au from 144m (19MORC037)
  • 42m @ 5.6g/t Au from 146m (20 MORC013)
  • 6m @ 55.8g/t Au from 108m (20MORC012)
  • 6m @ 51.7g/t Au from 228m (20MORC001)
  • 7m @ 7.0g/t Au from 183m (20MORC014)
  • 60m @ 2.7g/t Au from 96m (20MORC015)

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

Mineral Resources

The Information in this report that relates to Mineral Resources at 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 Mineral Resources at Break of Day 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 and 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 the Hollandaire, 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.

 

 

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. As part of the Agreement, Evolution has agreed to subscribe for 18,587,361 ordinary shares in Musgrave through a share placement (“Placement”) at a price of $0.0807 per share. The placement was set at the 30-day VWAP for Musgrave shares and represents a holding of 4.59% (undiluted) in the Company.

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.

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 (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.

Cyprium Australia have an option to acquire 80% of the non-gold rights to these base metal resources. Musgrave will retain a 20% free carried interest in the non-gold rights and retains a 100% in the gold rights.

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.