What some may not know is that this Muster Dam EL6746 tenement grant has picked up an area with the potential to be equal or greater than the current Razorback resources and be significantly larger than that of our friends/neighbours over at HIO. For disclosure I do hold both MGT & HIO.
Our directors knowledge and foresight of the region must be congratulated and not go unnoticed as this is another top shelf 'gem' for the company's exploration portfolio.
Back in 2011 Minotaur Exploration Ltd (MEP) was in a joint venture that had ownership over what they called the Mutooroo Magnetite Project - this was at the time contained within EL 3745 which included Muster Dam in amongst other targets.
MEP secured a 2004 JORC inferred resource of 1.5B tonnes @ 15.2% DTR for Muster Dam. The timing for magnetite deposit developments was not ideal as the DSO was the rage then...... I was in Royal Resources (now MGT) shareholder during that period and we know what fate they endured when trying to establish and fund the then Ironback project in 2012/3.
Of note MEP did some drilling in adjoining areas from Muster Dam in the EL3745 tenement which due to market conditions never made it through to the detailed infill drilling required for an additional JROC outcome. They came up with the following announcement:
The SA Government have rejigged the exploration areas when creating the new tenement EL6746 (MGT awarded) which is much less a size than the original EL3745 but I take you to the commentary in the ASX release from MGT on 1-3-2021:
You will see we have Surrender Dam, Duffields and Peaked Hill in our awarded area which are the major areas locking up what could be another 3 billion plus tonnes of resource at DTR grades much higher than Razorback's.
Now let's have a look at the DTRs from these additional areas with Duffields in particular averaging over 70% FE concentrates:
So there you have it, MGT is a company with a very solid potential to achieve near 9 billion tonnes of resource (Razorback 4.2, Muster Dam 1.5 others mentioned here 3.0 = 8.7 billion tonne) at say an average of 15-16% DTR.
I'm happy to hold and see the Razorback development as cash flow entree into the staging of expansion across a number of sites into a significant iron ore producer.
Cheers,
Vis
