THE BOURSE WHISPERER: Musgrave Minerals (ASX:MGV) has entered into a Heads of Agreement (HOA) with Menninnie Metals, a wholly owned subsidiary of Terramin Australia (ASX:TZN) to earn up to a 75 per cent interest in the Menninnie Dam silver-lead-zinc project in South Australia.
The Menninnie Dam project comprises a group of five Exploration Licences covering a contiguous area of 2,471 square kilometres in the Gawler Craton region of South Australia.
The Menninnie Dam project hosts the Menninnie Central and Viper zones with an inferred mineral resource of 7.7 million tonnes at 27 grams per tonne silver, 3.1 per cent zinc, 2.6 per cent lead.
Location of the Menninnie Dam project. Source: Company announcement
Musgrave said the project also encompasses a number of highly prospective geophysical and geochemical (lead-zinc-copper, and silver-gold) anomalies that demonstrate potential for definition of additional resources.
Previous exploration on the project has primarily focused on the existing resource, which has demonstrated potential to host high grade silver, zinc and lead.
Musgrave said the Menninnie Dam project enhances its project portfolio with a more advanced opportunity by adding further drill ready targets in a new and prospective province that can be tested immediately.
”The high-grade intercepts and estimated mineral resource demonstrate the potential for significant discoveries at Menninnie Dam and the opportunity is aligned with the company’s South Australia focus,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.
“The project is well located in regards to infrastructure and we look forward to drill testing the defined targets as soon as possible.”
Musgrave has already identified a number of drill-ready targets, on which it intends to commence drilling in the December 2012 quarter.
The Tank Hill target is a two kilometre long induced polarisation (IP) anomaly with co-incident surface zinc, lead, copper and gold soil geochemistry, which Musgrave considers to have not been adequately drill tested.
The Mannequin target is a 3km long IP anomaly that Musgrave considers more extensive and more intense than the responses over the known mineralisation at Menninnie Central.
The modelled source of the IP response extends from near-surface to significant depth.
The area is covered by transported overburden making geochemistry in-effective and has never been drill tested.
The Phone Hill target is a 1.5km long IP anomaly co-incident with a large surface soil silver, zinc, lead geochemical anomaly and regional alteration.
The IP response is relatively shallow and has never been drill tested.
The Phone Hill target is located 20km from the Paris silver deposit discovered by Investigator Resources (ASX:IVR) and 2km of IVR’s Victory East silver prospect.
Musgrave said its immediate intentions at Menninnie Dam will be to focus on:
– The analysis of detailed geochemical samples covering new targets;
– Re-interpretation of existing data; and
– RC and diamond drilling of new priority targets.
“This is a very good opportunity for the company to quickly drill test some really exciting targets in a very prospective new silver-zinc province,” Waugh said.
“The project has significant potential to provide a new discovery.”