Millennium Minerals Identifies Cost Cuts to Extend Nullagine Minelife

THE BOURSE WHISPERER: Millennium Minerals (ASX: MOY) announced the appointment of Australia-based consulting engineering firm Ausenco to complete a Feasibility Study on an alternate processing option for the company’s 100 per cent-owned Nullagine gold project in Western Australia.

Millennium Minerals explained the alternate processing option had been identified as part of a Sulphide Ore Expansion Study at the project.

The company has identified an alternative processing configuration, which it believes could result in a reduction in both capital and operating costs compared to the integrated CIL and flotation circuit that had previously been touted.

The alternative process could also deliver several strategic benefits to Millennium’s expansion plans at Nullagine.

The basis of the new process method is scavenging un-leached sulphide concentrates from the existing CIL tailings and subjecting them to ultra-fine grinding and intense cyanidation to achieve an improvement in the overall leach recovery.

“The Sulphide Ore Expansion Study, which underpins our corporate objective of becoming a 100,000 ounces-a-year producer by unlocking the existing large sulphide Mineral Resource inventory at Nullagine, is now in its final and most important stages,” Millennium Minerals chief executive Peter Cash said in the company’s announcement to the Australian Securities Exchange.

“The identification of this new processing option could transform the economics of the expansion project, dramatically reducing both capital and operating costs and resulting in a major reassessment of our reserve inventory.

“We still have further work to do to confirm that this is the case, but the early indications are extremely positive.

“The imminent completion of the Expansion Study dovetails with our move underground at Nullagine, with development of our first underground mine at Bartons set to begin by the end of this quarter.

“It also comes at a time when our exploration team is continuing to enjoy success with deeper drilling identifying the potential to significantly grow the Mineral Resource base below and along strike of the existing open pits.”

 

Email: info@mmltd.com.au

Website: www.millenniumminerals.com.au

Southern Gold Granted Tenure Over New Hampyeong Targets

THE DRILL SERGEANT: Southern Gold (ASX: SAU) has been granted formal tenure over its recent discovery of kilometre-scale surface gold and silver at the company’s wholly-owned Hampyeong project in the southwest of South Korea.

Southern Gold announced new assays, which have returned intercepts of:

Nabi
13.4 grams per tonne gold;

East Main
11.5g/t gold and 8.4g/t gold; and

Saseun Vein Zones
up to 6.8g/t gold.

Southern Gold explained that this target area has never been previously drilled, and these new surface gold samples are from veins that are commonly three to five metres true-width in outcrop within stockwork vein zones up to 20m wide.

The company indicated it has plans for an immediate first phase drilling program at Hampyeong to be carried out over the next two to three months.

“Hampyeong is shaping up to be a very interesting project,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“It isn’t often you get a chance to test epithermal quartz veins chipping high-grade gold at surface that have never been historically drill tested.

“There is huge potential to discover multiple economic low to high sulphidation epithermal gold-silver projects in South Korea.

“From my point of view, Hampyeong is just the beginning of a major exploration effort in a uniquely prospective geological terraine.”

 

Email: info@southerngold.com.au

Website: www.southerngold.com.au

Mincor Resources Begins Drilling at Cassini Prospect

THE DRILL SERGEANT: Mincor Resources (ASX: MCR has launched into its 2018 nickel exploration program with a program of diamond drilling at the Cassini prospect, located within the company’s Kambalda ground holdings in Western Australia.

Mincor Resources will be spending cash raised in a recent fund raising to carry out the drilling, which is to progress a suite of high-quality targets.

At first, the program will focus on shallow regional targets where Mincor considers there to be potential to delineate Resources or extend existing Resources.

The Cassini prospect is a near-surface nickel sulphide discovery where Mincor has identified several channel structures.

The Cassini CS2 channel has already returned high-grade intersections over a plunge of 430m and remains open.

Previous intersections from Cassini include:

MDD248
6.73 metres at 4.81 per cent nickel (estimated true width 5.4m);

MDD255
5.16m at 6.45 per cent nickel (est. true width 4m), and 6.42m at 7.25 per cent nickel (est. true width 5.5m);

MDD274
7.98m at 4.35 per cent nickel (est. true width 6.5m); and

MDD272
4.99m at 6.08 per cent nickel (est. true width 4.4.m).

Mincor has also commissioned a high-resolution aeromagnetic survey for Cassini, which it expects to have finished in February, weather permitting.

Results from the magnetics will assist to identify early stage targets immediately surrounding Cassini, including the northern half of the Cassini magnetic anomaly, Cassini South and Black Caviar.

“Mincor believes it has consolidated nearly all the prospective ground in the Kambalda for shallow nickel sulphide mineralisation, and together with its existing nickel Mineral Resources inventory, has an exciting opportunity to grow a quality nickel Ore Reserve inventory in the district,” Mincor Resources said in its ASX announcement.

 

Website: www.mincor.com.au

Alloy Resources Commences Ophara Project Exploration

THE DRILL SERGEANT: Alloy Resources (ASX: AYR) commenced exploration activities at the company’s Ophara cobalt-gold project located near Broken Hill in New South Wales.

Alloy Resources completed a data review and field inspection during January with an Independent Geochemist.

A surface sampling program has subsequently been designed and approved for commencement.

Alloy said the program will cover an area of approximately 60 square kilometres and will comprise conventional surface soil sampling on a 200 metre by 200 metre grid.

During the program soil mapping will be completed to enable accurate interpretation of different soil types which will assist interpretation of results.

“The program is expected to take two to three weeks to complete and a similar time for analysis,” Alloy Resources said in its ASX announcement.

“The objective of the program is to outline new drill targets for extensions and repetitions of the Great Goulburn cobalt-gold mineralisation.

“The area is regarded as highly prospective geologically as it is located between the Thackaringa project being advanced by Cobalt Blue Holdings (ASX:COB) and the Mutooroo project held by Havilah Resources (ASX:HAV) who have recently entered into a Memorandum Of Understanding.”

 

Email: info@alloyres.com

Website: www.alloyres.com

IPO Watch

IPO WATCH: IPOs in the resources sector have been benefiting from renewed interest in the space. The Roadhouse looks at one recent listing and a prospective lister.

 

BlackEarth Minerals (ASX: BEM)

BlackEarth Minerals listed on 19 January 2018 expressing its focused on the exploration and development of the company’s 100 per cent-owned Madagascan and Western Australian graphite projects.

BlackEarth Minerals’ Madagascan projects consist of two primary exploration areas: the main Maniry project, and the Ianapera project.

Maniry is considered highly prospective for largescale, high-quality graphite deposits and is currently at an advanced evaluation stage pending additional work to establish an initial resource, which is currently expected to be completed by mid-2018.

Results, from samples taken within 50 metres of surface, have been received and include 10m at 10.2 per cent total graphitic carbon (TGC), 12m at 11.6 per cent TGC and 14m at 11.3 per cent TGC.

Ianapera consists of a series of high-grade outcrops, up to 800m long and 30m wide, of graphite mineralisation within a broader graphite trend.

These high-grade (15%+ TGC), near-surface exposures of graphite mineralisation lie over the top of a large conductive body, which BlackEarth believes indicates the potential presence of a large graphitic mineralised system.

The company’s Western Australian graphite assets include project areas that have been partially explored by a number of companies in the past, with encouraging results reported from several locations.

BlackEarth researched graphite data via the historical Western Australian Mineral Exploration (WAMEX) database, which has already led to the identification of targets which will be the focus of initial exploration activities.

www.blackearthminerals.com.au

 

Saturn Metals

Saturn Metals is a wholly-owned subsidiary spin out of Peel Mining (ASX: PEX).

Peel Mining has sold off its 100 per cent-interest in the Apollo Hill gold project in Western Australia to Saturn, which is currently in the process of listing on the ASX by way of an initial public offering.

Saturn Metals has issued a prospectus to raise up to $7 million to progress its exploration activities at the Apollo Hill project.

The company has declared the purpose of the offer is to provide funds to immediately commence exploration on the Apollo Hill and Ra Resource areas.

It will also conduct further exploration activities within those areas to identify and grow new higher-grade gold lode/vein exploration targets and commence a cost-effective exploration program across the tenement package seeking to identify a large new Archaean Lode gold deposit.

www.saturnmetals.com.au

Corazon Mining Ready to Recommence Fraser Lake Complex Drilling

THE DRILL SERGEANT: Corazon Mining (ASX: CZN) is preparing to kick off the next phase of drilling at the Fraser Lake Complex (FLC), located just five kilometres south of the company’s 100 per cent-owned Lynn Lake nickel-copper-cobalt Mining Centre in Canada.

Corazon Mining advised that preparation for drilling at the FLC is nearing completion and that drilling is expected to begin the week commencing Monday, 12 February.

Access tracks and drill pads have been completed in preparation for drilling, and the drill rig is on site with personnel currently being mobilised.

Corazon has systematically explored the FLC since December 2016, carrying out a range of activities, including drilling, ground geophysics, downhole geophysics and geochemistry.

“The large amount of data generated from this targeted exploration has produced geophysical and geochemical models supporting the company’s view that the FLC has the potential to host significant nickel-copper-cobalt sulphide deposits,” Corazon Mining said in its ASX announcement.

The company has confirmed a number of priority drill targets from its 2017 fieldwork programs with the initial drill target being a deeply rooted, funnel-shaped, strongly magnetic feature, with similar characteristics to the nearby EL Mine deposit (a high-grade sulphide breccia pipe within the nearby historic Mining Centre).

Corazon has completed a capital raising Placement, funds from which will fully fund the company’s next phase of exploration at its two flagship projects, the Cobalt Ridge deposit within the Mt Gilmore cobalt-copper-gold project in New South Wales and the Fraser Lake Complex within the Lynn Lake nickel-copper-cobalt project in Canada.

 

Email: info@corazon.com.au

Website: www.corazon.com.au

Havilah Resources strikes MoU with Cobalt Blue to Test Mutooroo Ore

THE BOURSE WHISPERER: Havilah Resources (ASX: HAV) and Cobalt Blue Holdings (ASX : COB) have struck a Memorandum of Understanding (MoU).

Havilah Resources explained the MoU covers a joint investigation of the applicability of Cobalt Blue’s proprietary process for the recovery of cobalt from pyrite ores.

Havilah will provide Cobalt Blue a representative 10 kilogram Mutooroo sulphide ore sample, on which COB will perform laboratory test-work using its proprietary technology including crushing, grinding, flotation, calcining and leaching.

Havilah anticipates results by 30 April 2018.

“COB’s positive metallurgical work to date has identified a potential processing path that is demonstrating strong cobalt recoveries, for its pyrite hosted cobalt at Thackaringa,” Cobalt Blue said in its ASX announcement.

“Based on ASX releases and discussions between technical staff, the parties believe HAV may have similar metallurgical requirements to commercialise cobalt from Mutooroo.

“The key question is whether the COB process has the potential to unlock economic value for Mutooroo.”

Havilah Resources CEO Walter Richards told the market that, “Given we are neighbours and face similar metallurgical challenges in the recovery of cobalt from cobaltian pyrite ores, this agreement presents a mutually beneficial opportunity for us to work with COB at this time.”

“We have been impressed by COB’s rigorous scientific approach towards the recovery of cobalt from its Thackaringa pyrite ores, and feel that we can gain much from their experience and expertise,” he continued.

“Because of the large total resources of cobaltian pyrite, with appreciable gold, that we have, not only at Mutooroo, but also at our Kalkaroo and North Portia copper-gold deposits the outcome of this work has important economic implications for Havilah.

“If COB’s processes enable the recovery of cobalt, it will be a major step forward in enhancing the economic returns from all of our projects, and could well lead to ongoing cooperation with COB.”

 

Email: info@havilah-resources.com.au

Website: www.havilah-resources.com.au

Stavely Minerals Raises $8.3M to Advance Exploration

THE BOURSE WHISPERER: Stavely Minerals (ASX: SVY) completed a capital raising of up to $8.3 million to be spent on fast-tracking exploration of the company’s gold and porphyry copper-gold projects in western Victoria and Queensland.

Stavely Minerals explained the capital raising was underpinned by a Share Placement of 20 million shares at 34 cents per share to sophisticated and institutional investors to raise $6.8 million before costs.

Stavely has not left its existing shareholders out of the fun and is undertaking a Share Purchase Plan (SPP), also at 34 cents, to raise up to a further $1.5 million.

The company indicated the funds raised through the combined Share Placement and SPP will primarily be used to accelerate drilling programs in western Victoria testing a suite of porphyry copper-gold targets, including advanced exploration at the Thursday’s Gossan prospect where recent deep diamond drilling has delivered results indicating proximity to a potentially large-scale copper-gold porphyry.

Follow-up exploration programs are also planned this year on the company’s Queensland projects targeting epithermal and intrusive-related gold mineralisation.

“Over the past 18 months we have been systematically narrowing in on a potential copper-gold porphyry discovery at the Thursday’s Gossan prospect and we are now well funded into the next phase of exploration drilling at this very exciting prospect,” Stavely Minerals managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.

“And, with a recent Earn-in and Joint Venture Agreement in-place with Navarre Minerals, Stavely Minerals has further augmented a dominant tenure position in an under-explored alkalic copper-gold porphyry belt.

“With drill testing also about to commence at the exciting Toora West porphyry target, we have the opportunity to highlight multiple discovery opportunities within the belt – and therefore to realise greater value for shareholders by emphasising that Stavely Minerals could have its foot on an entire porphyry belt rather than just one very exciting prospect.

“This is a key attribute that can enhance Stavely’s attractiveness to the larger gold and resources companies.”

 

Email: info@stavely.com.au

Website: www.stavely.com.au

Rox Resources on The Hunt for New Projects

Historically, Rox Resources (ASX: RXL) has demonstrated its ability to acquire, develop, and monetise quality projects.

Rox Resources is currently sitting on a healthy war chest of approximately $12 million after selling the Reward zinc project in the Northern Territory to Teck Australia Pty Ltd.

Rox wasted very little time in showing its strategic intentions by landing a 100 per cent-acquisition of the Collurabbie nickel- gold-copper-PGE project in Western Australia.

The Collurabbie project tenements are situated due east of Rox’s other current operations – the Fisher East nickel sulphide and Mt Fisher gold projects.

The latest results from aircore drilling of strong nickel-copper-PGE anomalies at Collurabbie have again highlighted the project’s potential.

The drill program produced standout results, including:

Olympia North

CXAC013
24 metres at 0.38 per cent nickel, 0.17 per cent copper, 126ppb platinum, 235ppb palladium from 28m, including 8m at 0.5 per cent nickel, 0.29 per cent copper, 228ppb platinum and 317ppb palladium from 36m; and

CXAC086
32m at 0.6 per cent nickel, 0.36 per cent copper, 273ppb platinum, 405ppb palladium from 4m, including 20m at 0.7 per cent nickel, 0.4 per cent copper, 305ppb platinum, 464ppb palladium from 8m.

Ortus

CXAC008
24m at 0.56 per cent nickel, 0.12 per cent copper, 178ppb platinum and 212 palladium from 16m, including 12m at 0.74 per cent nickel, 0.19 per cent copper, 309ppb platinum and 315ppb palladium from 20m; and

CXAC046
24m at 0.56 per cent nickel, 0.04 per cent copper, 78ppb platinum and 84ppb palladium from 16m, (hole did not reach target depth).

In addition, anomalous nickel results were received north of Ortus along the Beta Sill.

The results indicate lateritic enrichment above a potential large low-grade disseminated nickel sulphide mineralized body:

CXAC011
27m at 0.45 per cent nickel from 4m; and

CXAC041
20m at 0.39 per cent nickel from 4m.

An aircore drilling campaign was completed at Mt Fisher, where Rox has already identified mineral resources of more than 86,000 ounces of gold.

The latest drilling focused on the Dam, Damsel, Dirks and Shiva prospects, delivering results that provide excellent potential for further exploration to add to the current resources.

Rox believes the Dam-Damsel-Shiva area has similarities to the 3.6 million-ounce Bronzewing deposits to the southwest, and is using the knowledge base built up in the 1990s and 2000s regarding Bronzewing and the Yandal Belt in its exploration program design.

The Damsel area hosts a gold indicated mineral resource of 726,000 tonnes at 2.3 grams per tonne gold for approx. 55,000 contained ounces of gold.

The aircore drilling extended the anomaly surrounding this resource by 800m to the south, suggesting possible extension and increase to the existing mineral resource.

Highlights of the aircore drilling include:

MFAC109
4m at 6.1g/t gold from 48m;

MFAC146
4m at 2.75g/t gold from 32m;

MFAC153
8m at 2.4g/t gold from 20m; and

MFAC161
4m at 3.5g/t gold from 40m.

The Collurabbie acquisition set a precedent for the company that it is eager to repeat in the coming months.

Rox is on the lookout for the acquisition of suitable projects, which it hopes will deliver meaningful shareholder value and, just as importantly, allow the company to progress to near-term production.

No doubt such an acquisition is liable to take ‘flagship’ billing from the company’s current portfolio, however, Rox is determined to continue exploration and development activities at its nickel and gold assets.

“We are watching the nickel price closely and have been encouraged by its recent run,” Rox Resources managing director Ian Mulholland told The Resources Roadhouse.

“Having said that, we do believe nickel probably has another year or two before it reaches a price where we will see previously working operations reopen and deposits, particularly the class 1 sulphide deposits, become economic.

“All the signs are there – demand is increasing, and supply has gone down.”

Mulholland’s optimism received support from some powerful corners.

The World Bank Group, in its 2017 Commodity Markets Outlook, October said, “All metals prices increased in the third quarter, led by zinc and nickel, which jumped 14 percent on robust demand and reduced mine production (zinc) and solid stainless steel demand (nickel).

“The market is expected to remain in deficit in the near term.

“Over the longer-term, demand is seen increasing to meet growing needs for nickel in lithium-ion batteries for electric vehicles and storage.”

According to recent research note from McKinsey & Company – The future of nickel: A class act, the global nickel market is about to enter a two-nickel market, comprising two distinct commodity segments.

These are traditional ferronickel pig iron (NPI) players (Class 2) versus (Class 1) the rechargeable batteries for electric vehicles (EVs).

“The global nickel market has traditionally been driven by stainless steel production using both high-purity class 1 and lower-purity class 2 nickel products,” McKinsey & Company said.

“Significant expansion of low-cost class 2 nickel capacity over the past decade – in particular NPI – has caused nickel prices to fall from the highs of US$29,000 per metric tonne in 2011 to an average of just above US$10,000 per metric metre in 2017, resulting in the curtailment of higher-cost class 1 capacity.

“However, the growing adoption of EVs and the resulting demand for high-purity nickel is providing a much-needed reprieve for the industry as a shift towards nickel-rich battery chemistries accelerates.”

McKinsey suggested that with demand for EVs expected to hit 31 million units by 2025, demand for class 1 nickel could increase from its current 33,000 tonnes to 570,000 tonnes by 2025.

Other analysts suggest this could occur much earlier, perhaps 2020.

Rox may be ready for the nickel worm to turn, but it is not prepared to sit around and wait for it to happen.

Since declaring its project accumulation strategy last year, the company has undertaken a first-pass review of many opportunities, assessing them against its project acquisition criteria.

Three projects are currently the subject of more advanced assessment including due diligence, data review and suitability to deliver near-term production and revenue.

Rox has developed a stringent, well-structured investment and technical criteria which each project is being assessed against.

It has identified specific commodity targets which are currently displaying strong macro fundamentals, including increased pricing, but which show a lack of any new near-term production options to cater for the surging demand globally.

These commodities include, but are not restricted to zinc, which has recently seen prices hit a ten-year high, and copper, with prices recently at three-and-a-half year highs on supply fears due to a lack of near-term production projects and increasing demand from major economies such as China.

“We remain one of the ASX’s well-cashed-up junior explorers with $12 million at the end of December,” Mulholland said.

“Our exceptional portfolio of existing assets provides exposure to the nickel and gold markets and we will continue to monitor market conditions, particularly with respect to where nickel goes in coming years.

“Importantly, our financial position gives us the firepower to aggressively pursue near-term growth opportunities and we are looking at numerous projects across a range of attractive commodities that we think can deliver significant shareholder value in the short term.”

 

Rox Resources Limited (ASX: RXL)
…The Short Story

HEAD OFFICE
Level 1, 34 Colin Street
West Perth WA 6005

Ph: +61 8 9226 0044

Email: admin@roxresources.com.au
Web: www.roxresources.com.au

DIRECTORS
Stephen Dennis, Ian Mulholland, Brett Dickson

Musgrave Minerals Drills with Standalone Intent

Musgrave Minerals’ (ASX: MGV) New Years’ resolution is simple enough: to maintain the flow of positive drilling results coming from the company’s Cue project in Western Australia and define a resource capable of sustaining a standalone operation.

Musgrave Minerals’ Cue project is in the Murchison district of Western Australia and contains the 4.83 million tonnes at 2.84 grams per tonne gold for 441,000 ounces of gold.

The main contributors to the resource are the Lena and Break of Day deposits, the latter of which being where Musgrave has concentrated a great deal of drilling activity.

Break of Day’s currently hosts an Indicated and Inferred Mineral Resource of 868,000 tonnes at 7.15g/t gold for 199,000 ounces of gold, which Musgrave expects to increase from further drilling.

The company’s confidence is understandable given results received towards the end of 2017 from a reverse circulation (RC) drilling program.

Intersections included:

17MORC108
11 metres at 13.8 grams per tonne gold from 115m down hole, including 6m at 24.5g/t gold from 120m down hole;

17MORC107
10m at 7.6g/t gold from 96m down hole;

17MORC117
6m at 8.2g/t gold from 84m down hole, including 2m at 20.9g/t gold from 86m down hole; and

17MORC118
3m at 12.6g/t gold from 142m down hole within a broader interval assaying 39m at 1.7g/t gold from 142m.

These results were followed by further outstanding results the company interpreted to highlight the opportunity it has at Break of Day to grow the Resource.

Musgrave concluded a successful 2017 by announcing further intersections from Break of Day that included:

17MORC127
30m at 11.3g/t gold from 120m down hole, including 4m at 22.3g/t gold from 120m and 8m at 28.1g/t gold from 136m;

17MORC125
6m at 13.2g/t gold from 56m down hole, including 3m at 23.5g/t gold from 136m;

17MORC120
4m at 9.3g/t gold from 288m down hole, including 2m at 16.8g/t gold from 289m; and

17MORC116
3m at 9.2g/t gold from 278m down hole.

The intercept recorded in17MORC120 is of note as it lies more than 160m outside the current resource boundary.

Similarly, the high-grade intersection in 17MORC127 highlights a substantial high-grade pod at relatively shallow depths that Musgrave believes will be potentially amenable to open-cut mining.

While all this was happening, Musgrave claimed a new gold discovery at the Louise prospect, located 750m south of the Break of Day deposit.

As part of the RC drill program at Break of Day, three drill holes were carried out on the Louise prospect along the same shear zone that hosts Break of Day with mineralisation observed to be similar in style and nature.

Drill holes 17MORC112 and 17MORC111 both intersected the targeted structure and quartz lode at Louise demonstrating continuity of mineralisation over strike.

17MORC112 intersected:
4m at 15.4g/t gold from 79m down hole, including 2m at 29.9g/t gold from 81m, which remains open to north and down dip.

Musgrave interpreted the northern plunge from the historical workings at surface through 17MORC112, to be similar to the plunge on the Velvet Lode at Break of Day.

“This was a great initial result at Louise as it immediately highlighted potential exists for new high-grade gold discoveries within the 20 kilometres of prospective strike we control in this under explored belt,” Musgrave Minerals managing director Rob Waugh told The Resources Roadhouse.”

“Louise is the second high-grade gold discovery for Musgrave within 18 months, which is a great achievement.”

“The mineralisation is within the southern continuation of the Break of Day shear and is wide open along strike and down dip.”

“It also combines with the high–grade result in 17MORC120 on the Velvet lode at Break of Day to highlights the existence of a substantial target for us to focus on between Break of Day and the new Louise prospect.”

The high-grade gold intersection at Louise demonstrates the potential for the formation of multiple high-grade gold shoots, particularly since there has only been one shallow basement drill hole carried out testing the shear zone along the 750m of strike between Louise and Break of Day.

So, a new year sees a new program of drilling announced for both Break of Day and Louise.

A program of diamond drilling being carried out at Break of Day has been tasked with extending the high-grade shoots outside the current resource boundary that remain open down plunge, where Musgrave intersected 11m at 54g/t gold in drill hole 17MORC084 mid-2017.

The current diamond drilling program was commenced in early December and is expected to have first assays returned in early February.

The Louise discovery is also being targeted by a nine-hole program of reverse circulation (RC) drilling designed to follow-up the near surface discovery intersection, from hole 17MORC112.

First assays from this program are also expected to arrive in late February.

“The diamond drilling is being undertaken to confirm the continuity of the geology and extend the gold mineralisation in the high-grade gold shoots at depth at Break of Day,” Waugh said.

“The RC follow-up drilling at Louise will aim to extend the newly discovered near surface high-grade gold mineralisation as well as infilling the 750-metre gap that currently exists between the Break of Day and Louise drill results.

“It should be no surprise that the company has classed this as a high-priority area, as we are confident there is significant upside potential to extend and grow our current high-grade gold resource.”

To the north west of the Break of Day deposit, and not to be forgotten, is the Lena deposit.

Although it is lower grade at an average grade of 1.8g/t gold per tonne, Lena boasts JORC resources of approximately 153,000 ounces.

Mineralisation at Lena remains open to the North and down plunge while the Leviticus and Numbers deposits south of Break of Day add another 50,000 ounces to the resource base.

These figures come into play when it taken into consideration that the company is targeting gold resources to support a standalone production facility.

A recent research not from Veritas Securities identified ongoing exploration would continue to add resources to support a standalone facility producing around 60,000 ounces of gold per annum for a capital cost Veritas estimated at approximately $60 million.

Veritas also noted the extent of infrastructure within the Murchison region, saying four third party mills dot the landscape with potential available for toll milling.

“Two of these mills are nearby, within 40 kilometres of Break of Day,” the analysts identified.

“Westgold’s Tuckabianna Mill (currently being refurbished by Westgold) with a capacity of 1.2 million tonnes per annum, and Ramelius Resources’ Mt Magnet Checkers Mill with a capacity of 1.7 million tonnes per annum.

“There are many reasons why either Ramelius or Westgold would wish to process high-grade ore from Break of Day.”

 

Musgrave Minerals Ltd (ASX: MGV)
…The Short Story

HEAD OFFICE
28 Richardson Street
West Perth WA 6005

Ph: +61 8 9324 1061

Email: info@musgraveminerals.com.au
Website: www.mugraveminerals.com.au

DIRECTORS
Graham Ascough, Rob Waugh, Kelly Ross, John Percival