musgrave spinoff, page-2

Barry FitzGerald
March 13, 2011

MORE RICHES

It might be 2011 but Australia still boasts an under-explored minerals frontier, one that just might be home to world-class nickel, copper, gold and platinum deposits that have remained hidden under sand cover.

It is the Musgrave Province, which straddles the common borders of South Australian, Western Australia and the Northern Territory.

A taste of the province's mineral potential came in 2000 when WMC Resources, now part of BHP Billiton, discovered the Nebo-Babel deposit in its WA portion.

Not much has happened since. The province is seriously remote and getting access agreements with traditional owners can be a slow process. The hidden mineral wealth is also covered by, on average, a 100-metre-deep blanket of sand.

But in one of the most unusual floats ever seen on the local market, a bunch of mining companies and explorers have decided the province - at least the SA portion - might best be explored on a co-operative basis.

They are combining their exploration interests in the province and raising $15 million for future exploration through Musgrave Minerals Ltd.

The six companies contributing exploration ground are Mithril Resources Ltd, Independence Group, Goldsearch, Argonaut Resources, Integra Mining and Canada's Barrick.

The 60 million shares at 25c from the float will account for 60 per cent of the company on listing, with shareholders in Mithril, Independence, Goldsearch and Integra to get a priority entitlement to 40 million of the new shares on a first come, first served basis.

All up, the company will hold some 50,000 sq kms of exploration tenements, equal to 5 per cent of SA's land mass.

Converting some of the province's minerals potential into reality is the job of the newly appointed managing director, Robert Waugh.

He is a seasoned campaigner with more than 24 years' experience in the resources game, including an eight-year stint in the Musgrave Province as part of the WMC exploration team that discovered Nebo-Babel.

http://www.brisbanetimes.com.au/business/planning-ahead-key-to-iron-ore-before-good-times-end-20110313-1bsw2.html