Poorly written results imo. Why can't they lay out results in an...

Poorly written results imo. Why can't they lay out results in an easy to read format rather than scattered through a report..

Starlight and White Light = 161,000 oz @ 13.9 g/t
Break of Day + above = 262,000 oz @ 10.2 g/t
Break of Day + above + Lena = 587,000 oz @ 3.6g/t
Break of Day + above + other small deposits = 659,000 oz @ 3.2g/t

Break of Day High-Grade Mineral Resource Estimate

• The Mineral Resource (Indicated and Inferred) update at Break of Day has estimated the Starlight and White Light lodes to host:

  360kt @ 13.9g/t gold for 161,000 ounces of contained gold

• Following the completion of a further 30,000m of infill and extensional drilling at Break of Day, and a re-interpretation of the mineralised lodes, the Mineral Resource (Indicated and Inferred) estimate at Break of Day, including Starlight and White Light is:

  797kt @ 10.2g/t gold for 262,000 ounces of contained gold

• The updated Break of Day resource delivers:

o 42% increase in gold grade to 10.2g/t Auo 58% increase in Indicated Resources to 175,900 ounces gold o 31% increase in total contained gold ounces

• Situated on a granted mining lease, the Break of Day resource is one of the highest grade, undeveloped, near-surface, gold resources in Australia

• A significant proportion of the resource will be amenable to open pit mining with the top 175m averaging over 1,100oz per vertical metre

• When combined, the Break of Day and the Lena deposit, located 130m to the north-west host (Inferred and Indicated Resources):

  5.1Mt @ 3.6g/t gold for 587,000 ounces of contained gold,
  of which a significant component will be amenable to open pit mining

• The successful regional drilling program is continuing with a focus on defining further high-grade, near surface gold deposits to grow the resource base

  Musgrave Minerals Ltd (ASX: MGV) (“Musgrave” or “the Company”) is pleased to report a significant resource update at its 100% owned Break of Day gold deposit on the Company’s flagship Cue Gold Project in Western Australia’s Murchison district (Figure 1).

  5 Ord Street, West Perth WA 6005
  Telephone: (61 8) 9324 1061 Fax: (61 8) 9324 1014
  Web: www.musgraveminerals.com.au Email: [email protected] ACN: 143 890 671

Musgrave’s Managing Director Rob Waugh said “This is a significant milestone for the Company with ongoing focus on grade and margin. It confirms Break of Day as a standout, high-grade, near- surface gold deposit that will largely be amenable to open pit mining. The deposit sits on a granted Mining Lease in a region with excellent infrastructure within a favorable mining jurisdiction. High- grade top cuts were used in the resource impacting the bonanza grades near surface at Starlight.”

“Undeveloped, near-surface, high-grade gold resources, close to existing infrastructure, are very rare in Australia. The growing resource base on our 100% owned Cue Project, which includes Break of Day and Lena is exceptional and carries significant value.”

“We are continuing to make new discoveries and grow the 100% owned gold resources at Cue. This latest update increases the contained ounces in the Break of Day Resource and improves the overall grade of the deposit while also delivering a major uplift in the geological confidence by refining the geological model and growing the Indicated Resource category.”

“With drilling continuing to intersect high-grade gold on new regional targets, we are looking forward to further exciting results as the programs progress.”

The total Indicated and Inferred Mineral Resources for the Break of Day deposit now stand at 797kt @ 10.2g/t Au for 262,000 ounces of contained gold (Table 1). When combined with the nearby Lena Resource located only 130m to the west, the two deposits host a combined 5.1Mt @ 3.6g/t gold for 587,000 ounces of contained gold, of which a significant component will be amenable to open pit mining methods (Figure 2).

The Mineral Resource at Break of Day is one of the highest grade, undeveloped near surface gold resources in Australia. The improved confidence and the very high-grade nature of the near surface Indicated Resource is a significant step towards future development and will enhance the open pit development economics.

The updated total Indicated and Inferred Mineral Resources for the Cue Project, incorporating the Break of Day and Lena deposits and several smaller deposits, now stands at 6.4Mt @ 3.2g/t Au for 659,000oz ounces of contained gold (Table 2).

Figure 1: Prospect location plan

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The Company is currently undertaking a regional drilling program to test analogues to the Starlight mineralisation along trend. The regional drill program has identified several new mineralised, near surface, high-grade gold zones, including Target 2 and Target 9 (Leviticus). (see MGV ASX announcements dated 8 October 2020 and 4 November 2020). The regional drilling program is continuing.

Figure 2: Break of Day and Lena Schematic image of combined 3D model

Break of Day Mineral Resource

The Mineral Resource at Break of Day extends over a strike length of more than 500m with individual gold lodes drill tested to varying depths but most to 250m vertical depth with a few partially tested to 350m depth. The mineralisation remains open down dip in several areas where further exploration drilling is warranted. Exploration has suggested there is potential to grow the resource through further discoveries following recent drill results to the south of Break of Day.

The mineralisation consists of quartz lodes hosted within a foliated and altered basaltic stratigraphic sequence and typically dips steeply to the south-west. Discrete zones of mineralisation are typically 1m to 10m in thickness. The Break of Day Mineral Resource is defined by 25 individual lodes (Figure 3) with nearly 85% of the gold contained within five main lodes (Starlight, Twilight, Velvet, White Light and Lode 13).

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Figure 3: Break of Day Long section showing current gold lodes (wireframes)

This Mineral Resource update builds confidence in the geological model which is showing good continuity of the mineralisation near surface and at depth on the main lodes. The significant increase in Indicated Mineral Resources supports the Company’s increasing confidence in the project and future development studies. The Indicated and Inferred portions of the resource are shown in Figure 4.

Figure 4: Break of Day long section block model showing Mineral Resource Classifications (Indicated Resources in green and Inferred Resources in blue)

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High-grade top-cuts were applied to individual lodes ranging from 30g/t to 350g/t. If utilising uncut data, the grade could increase to 12g/t Au. The difference is particularly evident in the near- surface oxide and transitional zones (Figure 5). The cut data shows a resource distribution with a strong near surface component with the top 175m averaging over 1,100oz per vertical metre (Figure 6).

Figure 5: Break of Day graph showing tonnes and grade v’s depth where surface is ~418mRL

Figure 6: Break of Day graph showing tones and ounces per vertical metre where surface is ~418mRL

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Discussion of Results

Following this Mineral Resource update, Break of Day’s standing as one of the highest grade, undeveloped near surface gold deposits in Australia has been confirmed. The improved confidence and the very high-grade nature of the near surface Indicated Resource is a significant step towards future development and will enhance the open pit development economics. For context it is important to note that the average open pit mill feed/head grade was 1.1g/t Au for existing Australian gold producers in the June 2020 quarter (“Aurum Analytics, Australian and New Zealand Gold Operations, June Quarter 2020 – Final Report”).

An additional 30,000m of drilling has now been undertaken at Break of Day, subsequent to the 2017 resource estimate. Following a detailed geological and structural review, and the discovery of the Starlight and White Light lodes at Break of Day, a re-interpretation of the mineralised gold lodes was completed. This re-interpretation of the Velvet and Twilight lodes is the basis for the new updated resource model and is confirmed from an increase in confidence through decreasing the drill hole spacing and increasing resources in the more robust Indicated category.

Since the previous Mineral Resource estimate, (published in July 2017) the Company has added 63,000 ounces of gold, increasing the Mineral Resources at Break of Day by over 31% and improving the overall grade of the deposit by 42% to 10.2g/t gold. The high-grade gold mineralisation occurs from only 2-3m below surface and a significant portion of the deposit will be amenable to open pit mining, which will likely generate significant margins.

The additional infill drilling at Break of Day has limited the depth extent of a number of individual lodes which combined with a re-interpretation of the lode geometries has reduced the tonnage (the higher intersection angle reduces the true width of the historical intercepts) on the lodes in the northern portion of the deposit. This has also limited the extent of Inferred Resources. Significant infill and extensional drilling has improved the confidence in the new resource model and generated a 58% increase in Indicated Resources along with a significant increase in grade and ounces in the near surface component.

Listing Rule 5.8.1

Pursuant to ASX listing rule 5.8.1, and in addition to the information contained in the JORC tables, the Company provides the following in respect to the Break of Day Mineral Resource.

Mineral Resource Statement Overview

An update of the Mineral Resource estimate for the Break of Day deposit was completed in November 2020 by Payne Geological Services Pty Ltd (“PayneGeo”). The update incorporates the results of infill and extension drilling programs carried out by Musgrave between 2017 and 2020 subsequent to the previous estimate dated July 2017. The drilling has identified and delineated a series of previously unrecognised east-west to WNW trending (local grid) high-grade lodes as well as providing increased confidence in the tenor and continuity of the interpreted mineralisation in other parts of the deposit.

The Break of Day Project area has been held by a number of operators and has been drilled in several phases since initial discovery. Drilling has been focussed on the Break of Day and the adjacent Lena deposits, with more regional exploration also completed. No modern mining has been conducted at Break of Day, with only minor historic workings present.

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The reported Mineral Resource for the Break of Day deposit has increased substantially since the last estimate in 2017. This is due primarily to the delineation of the very high-grade Starlight and White Light lodes. A summary of the November 2020 Break of Day Mineral Resource is provided in Table 1(a) below. The Mineral Resources for the Starlight and White Light lodes in the deposit are summarised in Table 1 (b).

Table 1(a): Break of Day Gold Deposit November 2020 Mineral Resource (0.5g/t Au cut-off above 260mRL, 3.0g/t Au cut-off below 260mRL)

Cut-off Grade

Surface-260mRL 0.5g/t Au cut-off Below 260mRL 3.0g/t Au cut-off Total

*Rounding discrepancies may occur

Indicated Inferred Total Tonnes Au Au Tonnes Au Au Tonnes Au Au

Mt g/t kOz Mt g/t kOz Mt g/t kOz

0.38 12.1 150 0.15 0.07 12.2 26 0.19 0.45 12.1 176 0.35

6.6 33 0.54 10.6 182 8.6 54 0.26 9.5 80 7.7 86 0.80 10.2 262

Table 1(b): Starlight and White Light lodes November 2020 Mineral Resource (0.5g/t Au cut-off above 260mRL, 3.0g/t Au cut-off below 260mRL)

Lode

Starlight lode Starlight FW lode White Light lode Total

*Rounding discrepancies may occur

Indicated Inferred Total Tonnes Au Au Tonnes Au Au Tonnes Au Au

Mt g/t kOz Mt g/t kOz Mt g/t kOz

0.22 17.1 119 0.02 0.02 2.4 1
0.07 11.3 23 0.03 0.30 14.6 143 0.05

16.3 12 5.7 6

10.4 18

0.24 17.0 131 0.02 2.4 1 0.10 8.7 29 0.36 13.9 161

Geology and Geological Interpretation

The Cue Project lies within the Murchison Province in the north-western part of the Archean Yilgarn Craton. In the Moyagee area, the greenstone sequence is dominated by the Cuddingwarra Shear Zone which extends from Mt Magnet to Meekatharra. Mineralisation at Break of Day is developed in the Break of Day Shear which is a splay off the Cuddingwarra Shear Zone.

The Break of Day Shear is characterised by a 100m wide zone of deformation within a sequence of basalts, ultramafics and iron rich sediments that have been intruded by numerous phases of felsic dykes. The Break of Day Shear is near vertical with possible shoots located at the intersection of northwest trending cross-faults.

The mineralisation comprises quartz lodes hosted within a foliated and altered basaltic stratigraphic sequence and typically dips steeply to the south-west. Discrete zones of mineralisation are typically 1m to 10m in thickness and include the previously identified Twilight and Velvet lodes. The recently discovered Starlight and White Light lodes are orthogonal to the previously defined mineralisation, with a grid east-west orientation and vertical dip. These two lodes host over 60% of the defined gold mineralisation at Break of Day.

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Regolith development varies across the prospect. Depth of complete oxidation in the deposit area is approximately 10m to 20m with depth to fresh rock approximately 30m to 50m. Gold distribution does not appear to be modified within the regolith.

Drilling at Break of Day extends to a maximum depth of 350m below surface. The mineralisation has been interpreted and estimated to a maximum depth of 370m and the mineralisation remains open in several parts of the deposit.

Drilling Techniques

A total of 649 RC and DD holes have been completed in the Lena/Break of Day deposit areas. Of those, 161 RC and 23 diamond drill holes have intersected the Break of Day Mineral Resource. The majority of holes were drilled by Musgrave however a small number of holes were completed by Silver Lake Resources Limited (“SLR”) between 2009 and 2013.

The majority of drilling prior to 2020 was completed on 25m spaced east-west (local grid) cross sections with holes drilled either -60o west or -60o east at typical spacings of 20m to 60m. Much of the drilling in 2020 was carried out on 10m to 20m spaced north-south (local grid) sections with most holes drilled to -60o north, targeting the more east-west trending, high-grade Starlight and White Light lode structures. The upper portions of the main lodes at the deposit have been drilled at 10m to 25m hole spacings. Hole spacings in the deeper portions of the deposit vary from 40m to 100m.

Drill hole collars were surveyed in MGA coordinates using RTK GPS and were transformed to local grid for interpretation and modelling. The resource drilling by Musgrave was down hole surveyed using gyro equipment completed at the time of drilling. Holes drilled by SLR were down hole surveyed using an Eastman single shot or EMS tool.

Sampling and Sub-sampling Techniques

For RC drilling, a face-sampling hammer was used with samples collected at 1m intervals from mineralised zones with composite sampling of 6m in visually unmineralised rocks. Samples were collected through rig-mounted cone splitters. Samples were reported to have been kept dry throughout the mineralised zones and visually determined recoveries were good.

Diamond drilling was completed using NQ2 drilling equipment for all diamond holes. Core selected based on geological observation was cut in half for sampling, with a half core sample sent for assay at measured geological intervals.

Sample Analysis Method

Samples from all resource drilling were assayed at contract laboratories using a fire assay technique. The recent Musgrave drilling was assayed at Intertek-Genalysis using a 50g fire assay. A small number of samples were assayed using the PhotonAssay technique.

Quality control data was collected from Musgrave and SLR drilling and included the use of blanks, certified standards and field duplicates. Detailed review of the QAQC data determined that the results were satisfactory and that the drilling database was suitable for resource estimation. The Musgrave infill drilling supports the previous drill hole data suggesting that there is no problem with the spatial location and tenor of mineralisation defined in the historic drilling.

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Estimation Methodology

The main lodes in the deposit were estimated using ordinary kriging (“OK”) grade interpolation whilst minor, discontinuous lodes were estimated using inverse distance interpolation. All lodes were interpolated using 1m composited data within wireframes prepared using nominal 0.3g/t Au envelopes and the lodes were estimated separately using hard boundaries.

Interpolation parameters were based on geostatistical analysis and considered the geometry of the individual lodes. A first pass search of 30m with a minimum of 12 samples and a maximum of 26 samples was used which resulted in 63% of the blocks being estimated. A second pass with a search range of 60m filled a further 26% of the blocks. The majority of the remaining blocks were filled with a 90m search.

High-grade cuts were applied to different lodes and ranged from 30g/t to 350g/t. The Starlight lode was estimated with a 350g/t high-grade cut. All values above 350g/t were clustered within 50m of surface and were considered to represent a particularly rich portion of the lode characterised by abundant coarse visible gold occurrences.

The application of high grade cuts has had a significant impact on the estimated grade. The uncut grade of the deposit was 12.0g/t, reducing to 10.2g/t in the reported Mineral Resource. The Starlight lode had an uncut grade of 19.8g/t, reducing to 17.0g/t for the reported Mineral Resource. The overall effect of the high-grade cuts was to reduce the grade and contained ounces of the reported Mineral Resource by 15%.

A Surpac block model was used for the estimate with a block size of 5m EW by 5m NS by 5m vertical with sub-cells of 0.625m by 0.625m by 2.5m.

Bulk density values applied to the model were 2.0t/m3 for Oxide, 2.3t/m3 for Transition and 2.80t/m3 for Primary rock. The values were based on determinations using drill core from the deposit.

Mineral Resource Classification

The portion of the deposit defined by detailed exploration drilling, typically less than 25m spacing but up to a maximum of 50m hole spacings and displaying good continuity of mineralisation and predictable geometry were classified as Indicated Mineral Resource.

Portions of a number of the lodes were sparsely drilled and variably mineralised and were classified as Inferred Mineral Resource. This was generally extrapolated to a distance of up to 60m past drill hole intersections. All minor lodes were classified as Inferred.

Cut-off Grades

The shallow, sub-cropping and very high-grade nature of the deposit suggests that good potential exists for open pit mining at the project. The estimated depth potential for open pit is considered to be approximately 160m, so above 260mRL (approximately 160m vertical) the Mineral Resource has been reported at a 0.5g/t Au lower cut-off to reflect potential exploitation by open pit mining. Note, the open pit depth limit used is an estimate only and pit optimisation and evaluation has yet to be completed.

The deeper mineralisation shows sufficient tenor and thickness of mineralisation to have potential for underground mining. To reflect the higher cut-off grades expected with potential underground mining, the portion of the deposit below 260mRL has been reported at a cut-off grade of 3.0g/t Au. The maximum depth of the reported Mineral resource is 370m below surface.

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Metallurgy

Preliminary metallurgical test work has been carried out on oxide, transitional and fresh mineralisation from the Break of Day deposit. Total recoveries in excess of 95% (including a high gravity gold recovery) are indicated using conventional processing methods.

Modifying Factors

No modifying factors were applied to the reported Mineral resources. Parameters reflecting mining dilution, ore loss and metallurgical recoveries will be considered during the planned mining evaluation of the project.

COMPETENT PERSONS’ STATEMENTS

The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves”. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Authorised for release by the Board of Musgrave Minerals Limited.

For further details please contact:

Rob Waugh
Managing Director
Musgrave Minerals Limited
Tel: +61 8 9324 1064
Email: [email protected].