Ann: MRV Metals Acquisition, page-2

Worth a look at the presentation too. Mt. Gunyan looks interesting, make a nice big open cut. Mgt seem to be on a roll. Silver has a bright future IMO.
"MRV METALS Pty Ltd ACQUIRES HIGHLY PROSPECTIVE TENEMENTS
The Board of Moreton Resources Limited (MRV) is pleased to advise that through its 100% fully
owned subsidiary, MRV Metals Pty Ltd, it has entered into a binding agreement to acquire a range
of tenements in the Granite Belt Region, close to the township of Texas in Southern Queensland.
These tenements (EPM 8854, EPM 11455, EPM 12858 and EPM 18950) were held by Macmin
Silver Ltd (Macmin) then Alcyone Resources Ltd (Alcyone) via Texas Silver Mines Pty Ltd (Texas
Silver), and have been the subject of early stage exploration. However due to the ongoing focus of
the startup operations of Texas Silver, the majority of the prospects identified over a period of 20
years have either not been fully explored or identified. At differing times both Macmin and Alcyone
suffered from depressed silver markets and fell into liquidation, in sequence, Alcyone being a Deed
of Company Arrangement of the former Macmin.
Of interest to MRV Metals amongst other things is the following identified mineralized drill hole
intersections that the company intends to review, model and then seek further exploration of –
30th September 2004 ASX Macmin Silver Ltd announcement
Hole No Co-ordinates From To Interval Copper Silver Zinc
North East (m) (m) (m) (%) (g/t) (%)
TUD1 6812038 333240 40 49 9 2.5 98 0.4
TUD2 6812038 333240 93 98 5 6 328 3.4
94 95 1 10 508 6.5
129 130 1 2.6 123 1.3
The same announcement goes further to identify the following additional intersections –
 TUD17 intersected 4m @ 0.5% Cu at approximately 20m depth from surface
 TUP7 intersected 9m @ 2.3% Cu, 110g/t Ag at 32-41 m depth downhole
The tenements contain a total Mineral Resource estimate for Mt Gunyan of approx. 7 Moz of
silver at a cut-off grade of 30 g/t Ag (754 kt @ 56 g/t Measured, 2.9 Mt @ 55 g/t Indicated and
302 kt @ 48 g/t Inferred) as announced on the 31 October 2012 by Alcyone to the ASX and
reported under the 2004 edition of the JORC Code.
MRV through this acquisition is also acquiring extensive historical drill data and associated analysis,
collected over multiple exploration programs that will be modelled, with the best potential future
exploration prospects then determined. The Company will review the potential for an upgrade of this
Mineral Resource subject to data analysis in the coming months.
Suite 8, Level 2 l 113 Wickham Terrace | Spring Hill | Brisbane | Qld | 4000 T: +61 (7) 3831 6088
PO Box 10684 | Adelaide Street | Brisbane QLD | 4000 E: [email protected]
Australia W: www.moretonresources.com.au
The current spot price for silver (per ounce) is approx. $20.79 AUD, however in our view we see the
price for silver, performing well in the next 3-5 years, with positive overall growth 10 years out.
An independent review in early 2016 of available public data for the prospect has been undertaken
by ResEval Pty Ltd (ResEval) whom were engaged by MRV. This was following significant due
diligence that was undertaken by the Company in late 2014 to early 2015, whereby MRV sought to
buy the Texas Silver Mine and associated tenements as a going concern off the receiver, after
having access to detailed data rooms and significant exploration information.
A great deal of this exploration data has not been released to the market and hence, whilst the
Texas Silver Mine, mining lease has now been declared a Restricted Area (RA 426) by the
Queensland Government, the Company is confident of the quality and quantum of information both
publically and within the associated data rooms, that exploration targets can be generated for followup.
Of interest to the Company also upon page 9 of the attached report by ResEval is the following
comment –
“This provides an encouraging exploration target than can often be associated with high grade silver
occurrences. Two of the most advanced projects indicate sufficient continuity that they
should be able to define Mineral Resources with additional drilling at Hornet (Copper) and
Harrier (Zinc-lead-silver).
Previous exploration has highlighted a number of prospects that have only had limited work due to
budget constraints and encouraging results that are yet to be followed up, including un-assayed drill
samples.”
The company is now progressing with the transitional issues that are, as always, subject to
Government approvals and other conditions, which we hope to have finalized in the coming months
and will update the market upon the next phase of activity for MRV Metals, with these exciting and
highly prospective tenements. We are also pleased to advise that this acquisition is fully
funded from current cash reserves. The total aquisition including tenements, significant historical
physical & electronic data along with associated transfer and make good fees, the Company is
expected to spend less than $75,000 through the purchase of these tenements from the liquidator
of the former Alcyone Assets. These tenements are seen as a significant acquisition for the
Company with future potential as a polymetallic mining operation.
The combined tenements will be referred to as the “Granite Belt Project” and a priority of the
Company will be early engagement with the land owners within the area and associated
communities, with a clear understanding of the importance that the Texas Silver Mines played in the
region prior to their subsequent failure and closure in early 2015.