Musgrave Minerals sharpens drill target focus.
THE CONFERENCE CALLER: The Musgrave Minerals (ASX: MGV) story is pretty much at its beginnings but it would appear the company has opened with an interesting beginning.
The company has a suite of tenements that includes the nickel-copper-PGE Musgrave project, which intersects the borders of Western Australia, South Australia, and the Northern Territory.
Musgrave’s other main project is its Joint Venture with Terramin Australia at Menninnie Dam, where it is focusing on silver-lead-zinc-gold.
What else does a junior exploration company need, you may ask?
Cash is usually the answer to that question and Musgrave has the ideal answer with $10 million sitting in the bank.
“There are a few key elements to the Musgrave Minerals story,” the company’s managing director Robert Waugh told The Roadhouse at the RIU Sydney Resources Round Up.
“We listed two years ago on the back of six cornerstone investors combing their tenements together in the Musgrave region.
“From there we have identified a number of targets. We have gone through a process to drill test those targets and have continued to develop our processes to identify more.”
Waugh explained the company had worked hard on increasing the quality of its Musgrave targets since it commenced its exploration activities, which has resulted in the identification of some high-quality targets at Mt Woodruff, Deering Hills and Moorilyanna.
“Our focus on the Musgrave side of things is on nickel-copper-sulphide,” Waugh said.
“Our project at Deering Hills has a number of high-quality targets in the order of one to two kilometre long geochemical anomalies that are coincident with magnetics and gravity.
“Some are coincident with airborne EM and we are doing ground EM over the next couple of months to get those in a position to drill by August.”
Is that your main project focus?
Deering Hills, along with Mt Woodruff are the company’s two main focus points in the Musgrave.
Mt Woodruff is in a similar position to Deering Hills in that Musgrave has identified one to two kilometre long airborne EM anomalies, coincident stream sediment geochemistry, with magnetics and gravity, which it considers also suggests these are high-quality targets.
“We have collected ground geochemical data and we are now waiting on those results, which we anticipate being back in around two to three weeks,” Waugh said.
“Again – that should be drill ready for around August.”
While all this has been happening at the Musgrave project the company has also been drilling at the Menninnie Dam project, in particular at the Tank Hill target from which it recently released an intersection from of 6 metres at 4.9 per cent zinc, 62 grams per tonne silver, and 1.2 grams per tonne gold.
“It is only early days at Tank hill, but that’s a positive sign for us,” Waugh said
“We have the drill rig back out there drilling at the moment, so that should give us a better indication of what we are seeing there in terms of potential along strike and down dip.”
Waugh said the company had been greatly encouraged by what it has seen so far from its projects.
“We love the Musgrave Province,” he said.
“We feel it has a significant amount of potential and we also like Menninnie Dam and its links to silver potential, similar to Investigator Resources and what it has achieved at the Paris project.
“Both regions are still very much underexplored at this stage, but that is what we’re about – early-stage greenfield opportunity and discovery.”