28 Richardson Street, West Perth WA 6005 Telephone: (61 8) 9324...

28 Richardson 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​

ASX RELEASE 20 September 2017
ASX: MGV
Gold Results Continue to Extend Break of Day
• Near surface drilling to test the open cut mining potential at Break of Day has intersected: o 13m @ 8.8g/t Au from 102m down hole (17MORC093) including; • 1m @ 28.7g/t Au from 102m down hole and
• 1m @ 62.0g/t Au from 113m down hole
o 4m @ 10.5g/t Au from 52m down hole (17MORC098) including; • 2m @ 18.8g/t Au from 53m down hole
　
　
• Extensional drilling at Break of Day has intersected further high-grade gold south of the current resource including: o 1m @ 13.6g/t Au from 171m down hole (17MORC090),
o 2m @ 5.2g/t Au from 234m down hole (17MORC086) including: • 1m @ 9.4g/t Au from 234m down hole
　
　
• The extensional drill intersections are approximately 100m south of the previous resource drilling and above the projected position of the new high-grade shoot defined by drill hole 17MORC084 that intersected 11m @ 54.0g/t Au
• The combined strike length of the lodes at Break of Day is now approximately 800m and still open along strike and down plunge
• Drilling of the new Louise target has intersected gold mineralisation within quartz veining and alteration in a geological setting very similar to Break of Day
Musgrave Minerals Ltd ("Musgrave" or "the Company") (ASX: MGV) is pleased to report further intersections at the Break of Day deposit with results received from the recently completed reverse circulation ("RC") drilling program. The wholly owned Break of Day gold deposit is on the Cue Project in the Murchison region of Western Australia (Figure 1).
Musgrave Managing Director Rob Waugh commented, "The Break of Day deposit continues to grow with the new south plunging high-grade shoot still open. This new shoot is projected below the current drilling and creates a significant opportunity for the Company to grow the high-grade gold resource at Break of Day. The high-grade gold intersected near surface will also enhance the open cut mining potential at Break of Day."
"The Musgrave team will aim to double the Moyagee resource over the next 18 months through additional RC and diamond drilling. We are yet to find the edges of the Break of Day deposit which is proving to be part of a significant high-grade mineralised gold system."2
Break of Day hosts a combined (Indicated and Inferred) Mineral Resource of 868kt @ 7.15g/t Au for 199koz Au (see ASX announcement 14 July 2017, "Resource Estimate Exceeds 350koz Gold") and the purpose of the recent program was to identify extensions to this resource.
Musgrave has now received assay results for all but two drill holes from the recently completed 20 hole, RC drill program (Table 1).
BREAK OF DAY
Individual 1m assay results for all drill holes (Figure 1) from the recently completed drill program at Break of Day have been received as presented in Table 1.
Extensional drill hole 17MORC086 intersected 2m @ 5.2g/t Au from 234m down hole on the Twilight Lode including 1m @ 9.4g/t Au from 234m. This intercept is outside the current Mineral Resource boundary. The drill hole lifted and as such did not test the interpreted down plunge position of the new southern high-grade shoot (Figures 2 and 5).
Drill hole 17MORC090 intersected 1m @ 13.6g/t Au from 171m down hole on the Twilight Lode and is also outside the current Mineral Resource boundary and above the interpreted position of the south plunging high-grade shoot (Figures 3 and 5). This intersection is approximately 50m south of 17MORC084 (11m @ 54.0g/t Au - see ASX announcement 5 September 2017, "Drilling Hits 11m @ 54.0g/t Au at Break of Day") and extends the gold mineralisation to the south where it is still open (Figures 1 and 5).
Further drilling will commence in early October to test the potential down plunge extension of this new south plunging high-grade shoot.
Drill holes 17MORC092-93 and 17MORC097-98 were drilled to test the near surface extension of the Velvet Lode in an area previously not drilled and intersected significant high-grade gold mineralisation (Figure 4). These gold intercepts are potentially open pittable and will add to the current resource.
The best intersections include:
o 17MORC093 13m @ 8.8g/t Au from 102m down hole including: • 1m @ 28.7g/t Au from 102m and 1m @ 62.0g/t Au from 113m
　
and
o 17MORC098 4m @ 10.5g/t Au from 52m down hole including: • 2m @ 18.8g/t Au from 53m down hole
　
The southern-most drill hole 17MORC100 intersected 1m @ 4.6g/t Au from 49m down hole on the Velvet Lode at Break of Day indicating that the mineralisation is still open to the south and that the Velvet and Twilight Lodes can now be traced over a combined strike length of approximately 800m.
The high-grade gold mineralisation at Break of Day occurs in vertical to steep westerly dipping, semi-parallel quartz lodes hosting gold with minor (1-2%) pyrite, within a basaltic stratigraphic sequence. The separation of the Twilight and Velvet gold lodes varies along strike from 10 to 60 metres. The gold mineralisation is currently open along strike and down plunge.3
Figure 1: Location plan showing maximum gold in hole plotted at the drill hole collar and significant intersections for the Break of Day gold deposit4
Figure 3: Break of Day cross section 13100mN – local grid (vertical section through mineralisation)
Figure 2: Break of Day cross section 13125mN – local grid (vertical section through mineralisation)
Figure 4: Break of Day cross section 13225mN – local grid (vertical section through mineralisation)5
Figure 5: Break of Day schematic long section of the combined Twilight and Velvet gold lodes with new drill hole locations and the projected outline of the Lena deposit which is located approximately 130m west of Break of Day together with new drill target (a long section or longitudinal section is a section along the plane of the lode and in this instance shows gold grade x thickness variability with depth of the combined Lodes)
LOUISE
Three holes were drilled to test the Louise gold target 600m south of Break of Day along the same mineralised shear zone that hosts the high-grade Break of Day deposit. Significant quartz veining and alteration was intersected in all three drill holes with a best result of 3m @ 2.75g/t Au from 116m (17MORC095) (Figure 6). Interpretation of the data suggests that the drilling has not effectively tested the potential for a plunging high-grade gold shoot below the historical workings similar to that recently intersected at Break of Day.
Managing Director Rob Waugh said, "This is a positive early result at Louise and the drill hole geology supports the theory that we could be on the edge of a higher grade mineralised shoot. The team is looking forward to further drill testing of this new target."
Additionally, the drilling has confirmed that the Louise Prospect occurs in the same stratigraphic sequence and along the same structure that host the current Mineral Resource at Break of Day to the north, and Leviticus to the south. The mineralised structure is still open to the north and south and with drilling confirming mineralisation over a strike length of 2.3km. The structure can be interpreted from magnetics to extend for over 20km with considerable upside to discover additional high-grade deposits along its length.
Further RC drilling is being planned at Louise for late October.6
Figure 6: Location plan showing Louise prospect drill hole collars in relation to the location of the Break of Day gold deposit
THE CUE PROJECT
The Cue Project ("the Project") is located in the Murchison district of Western Australia with important key tenure wholly owned by Musgrave Minerals (Figure 7). The Project consists of the Moyagee Gold and Hollandaire Copper Resources (see MGV ASX announcement 14 July 2017, "Resource Estimate Exceeds 350koz Gold" and Silver Lake Resources Limited’s ASX announcement 26 August 2016, "Mineral Resources and Ore Reserves Update"). The Company believes there is significant potential to grow the existing Mineral Resources base.
Enquiries:
Rob Waugh
Managing Director
Musgrave Minerals Limited
+61 8 9324 10617
Figure 7: Cue Project location plan and tenure
About Musgrave Minerals
Musgrave Minerals Limited is an active Australian gold and base metals explorer. The Cue Project in the Murchison region of Western Australia is an advanced gold and copper project. Musgrave’s focus is to increase gold and copper resources through discovery and extensional drilling to underpin studies that will demonstrate a viable path to development in the near term. Musgrave also holds an active epithermal Ag-Pb-Zn-Cu project in the prospective silver and base metals province of the southern Gawler Craton of South Australia and a large exploration footprint in the Musgrave Province in South Australia. Musgrave has a powerful shareholder base with three mining and exploration companies currently participating as cornerstone investors.
Competent Person’s Statement
Exploration Results
The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled and/or thoroughly reviewed by Mr Robert Waugh, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Member of the Australian Institute of Geoscientists (AIG). Mr Waugh is Managing Director and a full-time employee of Musgrave Minerals Ltd. Mr Waugh has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Waugh consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statements
This document may contain certain forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Musgrave Minerals Limited’s (Musgrave’s) current expectations, estimates and projections about the industry in which Musgrave operates, and beliefs and assumptions regarding Musgrave’s future performance. When used in this document, words such as "anticipate", "could", "plan", "estimate", "expects", "seeks", "intends", "may", "potential", "should", and similar expressions are forward-looking statements. Although Musgrave believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Musgrave and no assurance can be given that actual results will be consistent with these forward-looking statements. 8

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10	Column 11	Column 12	Column 13	Column 14
0	Table 1: Summary of Drill Hole Locations and Significant Assay Intervals Drill Hole ID	Drill Type	Prospect	Easting (m)	Northing (m)	Azimuth (deg)	Dip (deg)	RL (m)	Total Depth (m)	Sample Type	From (m)	Interval (m)	Au (g/t)	Lode
1	*17MORC081	RC	Break of Day	581900	6936004	120	-60	416	159	Individual 1m	71	1	2.5	Twilight
2	*17MORC082	RC	Break of Day	581862	6935969	120	-60	416	200	Individual 1m	114	1	3.4	Twilight
3	*17MORC083	RC	Break of Day	581831	6935989	120	-60	416	255	Individual 1m	172	1	3.5	Twilight
4	*17MORC084	RC	Break of Day	581805	6936005	120	-60	416	303	Individual 1m	217	11	54.0	Twilight
5	including	217	5	109.6	Twilight
6	and	223	4	10.9	Twilight
7	17MORC085	RC	Break of Day	581778	6935992	120	-56	416	193	Hole failed
8	17MORC086	RC	Break of Day	581772	6935995	120	-56	416	327	Individual 1m	234	2	5.2	Twilight
9	including	234	1	9.4
10	17MORC087	RC	Louise	581490	6935139	120	-55	416	129	Individual 1m	102	2	1.7	Louise
11	17MORC088	RC	Louise	581477	6935120	120	-60	416	135	Individual 1m	108	2	0.4	Louise
12	17MORC089	RC	Break of Day	581875	6935903	120	-60	416	111	NSI
13	17MORC090	RC	Break of Day	581807	6935945	120	-65	416	279	Individual 1m	171	1	13.6	Twilight
14	Individual 1m	216	6	0.6	Velvet
15	17MORC091	RC	Break of Day	581761	6935974	120	-64	416	309	Individual 1m	281	1	1.5	Twilight
16	17MORC092	RC	Break of Day	581931	6936044	120	-60	416	81	Individual 1m	60	1	0.9	Twilight
17	17MORC093	RC	Break of Day	581945	6936007	120	-58	416	123	Individual 1m	102	13	8.8	Velvet
18	including	102	1	28.7
19	including	113	1	62.0
20	17MORC094	RC	Waratah	582479	6935988	120	-57	416	129	Individual 1m	6	4	0.2	Waratah
21	6m composite	23	6	0.3
22	17MORC095	RC	Louise	581504	6935162	120	-60	416	135	Individual 1m	116	3	2.75	Louise
23	17MORC096	RC	Break of Day	581770	6935938	120	-60	416	288	Assays awaited
24	17MORC097	RC	Break of Day	581987	6935979	120	-60	416	63	Assays awaited
25	17MORC098	RC	Break of Day	581966	6935992	120	-55	416	93	Individual 1m	52	4	10.5	Velvet
26	including	53	2	18.8
27	Individual 1m	74	1	1.4
28	17MORC099	RC	Break of Day	581927	6935958	120	-57	416	129	NSI
29	17MORC0100	RC	Break of Day	581861	6935881	120	-60	416	117	Individual 1m	49	1	4.6	Velvet