cbo - saturn complex

UNUSUAL ELLIPTICAL BODY A FIRST FOR THE MUSGRAVE REGION

Cobra Resources Limited's (ASX: CBO) new exploration spin-off,Musgrave Minerals Limited, has received a major boost ahead of itsproposed ASX listing with news of the discovery of a largeaeromagnetic anomaly interpreted to be a zoned mafic intrusivecomplex, prospective for Bushveld-style Platinum Group Element (PGE)mineralisation on its Musgrave tenements.

The discovery, on the Blackstone Project, is unique within the wholeMusgrave region and provides encouragement that the tenements mayhost a significant mineral deposit. The highly unusual elliptical
body, 13 kilometres by 7 kilometres in size, has been named the"Saturn Complex".

As well, Musgrave has identified at least six Voiseys Bay stylenickel-copper sulphide targets on its Blackstone tenements from the recently completed low-level detailed aeromagnetic survey.

Evident within the detailed magnetic data set are geologicalstructures with similar orientations to those structures interpretedto be controlling the nickel-copper sulphide mineralisation at the nearby Nebo and Babel discoveries (WMC Limited).

The Blackstone Project is located just 25 kilometres from Babel and Nebo.

Cobra's Chairman, Mr Laurie Ziatas, said the results of the survey were very encouraging and highlighted the prospectivity of Musgrave Minerals' tenement package in the Musgrave Region of Western Australia currently one of Australia's best regarded exploration addresses.

"This is very encouraging news ahead of the shareholder meeting on 20 May to approve the proposed demerger of Cobra's Musgrave exploration assets, clearing the way for the launch and proposed subsequent ASX
listing of Musgrave Minerals," Mr Ziatas said.

The spin-off mechanism for Musgrave involves the purchase of Cobra's West Musgrave assets for $1.5 million and 33 million shares which are to be partly distributed to Cobra's shareholders. Musgrave will then
undertake a $6 million raising, first by way of an exclusive seed-capital offer to Cobra shareholders followed by an IPO to the general public but giving first priority to Cobra shareholders and optionholders.

Musgrave Minerals' CEO, Mr Jeremy Read, said the Saturn Complex comprised regular alternating magnetic and non-magnetic layers.

Mr Read, a geophysicist by training and former Manager of BHP's Australian Exploration Team, said the body was unusual as no other such regularly zoned interpreted intrusive bodies were evident in the regional (less detailed) aeromagnetic data covering Giles Complex
rocks within the West Musgrave region.

"The layered nature of the Saturn Complex suggests that it is prospective for layered 'reef-style' PGE mineralisation or titanium-vanadium mineralisation, similar to that occurring in the Bushveld Complex in South Africa which is the world's largest source of PGE's and the Panton Sill Project in northern WA," he
added.

"We are most encouraged by the results of this aeromagnetic survey, as the unique character and large size of the Saturn Complex suggests that the potential for a significant mineral deposit on the Blackstone Project is high," Mr Read said.

Mr Read said the Saturn Complex would be a priority target for Musgrave Minerals after listing on the ASX. Access Agreements for the Project, comprising tenements E69/1069 and E69/1070, are already in
place with the Ngaanyatjarra Land Council. An Entry Permit was granted in August last year.

He went on to say that Musgrave Minerals was also highly encouraged by the nickel-copper targets generated by the aeromagnetic survey.

"At least six magnetic anomalies, which may represent mafic or ultramafic intrusions, occur in close proximity to these structures and hence represent quality Voiseys Bay style targets," he said. "A strong magnetic anomaly occurs along the northern side of the Blackstone Range, which is interpreted as the basal gabbro unit with
potential to host nickel-copper sulphide mineralisation." Musgrave Minerals is already designing follow-up programs to test thesetargets and determine their potential.

The Musgrave Minerals spin-off is scheduled to be completed by mid-year.