Musgrave Minerals (ASX:MGV) has commenced a drilling program to test three gold and base metal targets at the Menninnie Dam Project in the southern Gawler Craton region of South Australia.
The drilling program will test both zinc-lead-silver and copper-gold targets at Erebus, Mallee and Taal with a minimum of 1500 metres of drilling.
The targets appear prospective and each is of large enough extent to potentially host significant volumes of mineralisation.
All datasets to date align to support the mineralisation model and the targets.
Musgrave entered a Joint Venture Agreement with Menninnie Metals, a wholly-owned subsidiary of Terramin Australia (ASX:TZN) to earn a 51% interest in the Menninnie Dam Project in the first stage, and up to 75% thereafter.
Musgrave recently completed detailed soil sampling and gravity surveys over a number of specific target areas.
Soil geochemistry returned anomalous silver, gold and copper values at Erebus coincident with an induced polarization chargeability anomaly, versatile time domain electromagnetic response and gravity low.
The geophysical characteristics of the target are similar to that at the Menninnie Central silver-lead-zinc deposit located 4 kilometres to the north-east.
The Mallee target is a coincident gravity high, rimmed magnetic high and IP chargeability response with anomalous copper, lead, antimony, gold and zinc geochemistry at surface. This is consistent with the possible presence of a copper-gold porphyry body.
The Taal target is a coincident gravity high and VTEM anomaly located at the intersection of two significant regional structures. A ground electromagnetic survey at Taal is scheduled to commence in the next two weeks to further refine a drilling target.
The drilling will involve reverse circulation and diamond holes and is estimated to take four weeks to complete. Assay results are expected in late January 2015.
Musgrave is modestly valued at $5 million.
