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StantecANNUAL REPORT 2013
Exploration for base metal deposits,
silver and gold mineralisation in
South Australia
ABN 12 143 890 671
Musgrave Minerals Limited is a dedicated exploration
company focused on base metals, silver and gold in the highly
prospective Musgrave Province and Gawler Craton regions of
South Australia.
The Company’s functional and presentational currency is
Australian Dollars.
A description of the Company’s operations and principal
activities is included in the Review of Operations and the
Directors’ Report.
ASX Code: MGV
Issued Shares: 121M
Cash Balance: $9.6M (30th June 2013)
ABN: 12 143 890 671
Top shareholders
Mithril Resources Ltd
Independence Group NL
Goldsearch Ltd
Barrick (Australia Pacific) Ltd
Silver Lake Resources Ltd
Corporate Information
Directors
Graham Ascough (Non-Executive Chairman)
Robert Waugh (Managing Director)
Kelly Ross (Non-Executive Director)
John Percival (Non-Executive Director)
Company Secretary
Donald Stephens
Registered Office
C/- HLB Mann Judd (SA) Pty Ltd
167-169 Fullarton Road
Dulwich, SA, 5065
Principal Place of Business
19 Richardson Street
West Perth, WA, 6005
T: +61 (8) 9324 1061
F: +61 (8) 9324 1014
info@musgraveminerals.com.au
www.musgraveminerals.com.au
Share Registry
Computershare Investor Services Pty Ltd
Level 5, 115 Grenfell Street
Adelaide, SA, 5000
Auditor
Grant Thornton South Australian Partnership
Chartered Accountants
Level 1, 67 Greenhill Road
Wayville, SA, 5034
Legal Advisors
O’Loughlins Lawyers
Level 2, 99 Frome Street
Adelaide, SA, 5000
i
Musgrave Minerals Ltd
Corporate Information
Contents
Chairman’s Letter
Review of Operations
Summary of Tenements
JORC 2012 Table 1
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
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3
17
24
36
43
50
51
52
53
54
55
77
78
81
1
Contents
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
1
Chairman’s Letter
Dear Fellow Shareholder,
priority EM and geochemical targets at the Deering Hills
Project that warrant drilling, and we also identified targets for
It gives me great pleasure to present the 2013 Annual Report
follow-up after a soil geochemical program over the Ragnar
for Musgrave Minerals Limited. The past 12 months have
target at Mimili, along with EM and geochemical targets at Mt
been very active as the Company further establishes itself as
Woodroffe.
an explorer in the highly prospective regions of the Musgrave
Province and Gawler Craton in South Australia.
The recently granted Pallatu tenement has been identified
Our agreement signed with Menninnie Metals Pty Ltd, a
a large nickel sulphide system with coincident geophysical
subsidiary of ASX-listed Terramin Australia Ltd (TZN), to earn
anomalies in a favourable geological setting. We look forward
as a priority area as the targets show all the right criteria for
up to a 75% stake in the Menninnie Dam silver-lead-zinc
to advancing this target in 2013.
project in the Gawler Craton, has proved to be an important
decision for the Company. Menninnie Dam is well located
Our work during the past year has demonstrated that
in terms of infrastructure, already has an existing mineral
Musgrave Minerals is moving in the right direction with the
resource, and there is plenty of exploration upside to add to
objective of making significant discoveries across our projects.
this, with a growing number of high-quality targets awaiting
We are well-funded to continue exploration, with $9.6 million
drill testing.
in the bank – a position many of our peers would no doubt
Already our team has discovered new base metal
envy.
mineralisation on the project being the zinc, silver and gold
I would like to thank our management and staff for their
mineralisation discovered at the Tank Hill target. An airborne
exceptional hard work and dedication over the past year,
geophysical survey identified VTEM (versatile time domain
and to our shareholders for their loyalty and support. The
electromagnetic) anomalies co-incident with silver geochemical
upcoming year will undoubtedly be busy again for our team
targets and these will be our focus at Menninnie Dam in the
and we look forward to sharing with you the results of their
immediate future.
work.
We have again been active across our tenement package in
the Musgrave Province, continuing our approach of systematic
exploration that we believe will return the best results for the
Graham Ascough
Company and our shareholders. We currently have high-
Chairman
MGV Board members (from left) Robert Waugh, Graham Ascough, Kelly Ross and John Percival
2
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Chairman’s Letter
Review of Operations
Musgrave Minerals Limited (ASX: MGV) is an Australian-based
exploration company focused on base metal, gold and silver
exploration in the Musgrave Geological Province and Gawler
Craton regions of South Australia.
Musgrave Minerals is focused on exploring for massive and
disseminated nickel and copper sulphide mineralisation in the
Musgrave region and high grade silver-zinc-lead mineralisation
at Menninnie Dam.
During the year the Company focused on three main project
areas, Deering Hills and Mt Woodroffe in the Musgrave
and Menninnie Dam. During this period, we successfully
completed four drilling campaigns, one at Deering Hills and
three at Menninnie Dam, along with two airborne VTEM
surveys and a range of other field activities to advance
targets to a drill-ready stage. The Company has successfully
demonstrated the prospectivity of all three project areas and
will continue to advance targets through to drilling.
In South Australia, the Musgrave Province lies almost entirely
within Anangu Pitjantjatjara Yankunytjatjara (“APY”) land
Figure 1: Musgrave Minerals’ project location map
(Aboriginal freehold land). Musgrave Minerals continues to
also located just 20km from the recent Paris silver discovery.
develop a strong relationship with the APY and is continuing
Historical drilling at Menninnie Dam has focused on the
to progress new exploration tenements to grant in our region.
existing resource area leaving significant potential for new
discoveries in the region.
Menninnie Dam, approximately 100km west of Port Augusta
in South Australia, is a silver- zinc-lead project comprising five
licences which cover an area of 2,471km2 in the southern
Musgrave returned a very encouraging drill result from the
Gawler Craton.
initial drilling at Tank Hill at Menninnie Dam returning 6m @
4.9% Zn, 0.7% Pb, 62g/t Ag, 1.2g/t Au in MDRC039. The
The Company has an agreement with Menninnie Metals Pty
mineralisation is only 5km north-east of the existing Menninnie
Ltd, a subsidiary of Terramin Australia Limited (ASX: TZN), to
Central and Viper deposits.
earn a 51% interest in the Menninnie Dam Project in the first
stage, and up to a 75% interest thereafter.
Musgrave Minerals is committed to exploration success and
making the next significant discovery to drive shareholder
The project hosts the Menninnie Central and Viper mineralised
value.
zones which have a JORC-compliant Inferred Mineral Resource
of 7.7Mt at 27g/t Ag, 3.1% Zn and 2.6% Pb (estimated by
Terramin Australia Limited in 2011 in accordance with the
2004 JORC code). These zones are not closed off and there
is potential for further resources to be defined. The project is
3
Review of Operations
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
3
Corporate
Exploration Activities
Musgrave Minerals Ltd listed on the Australian Securities
Exchange (“ASX”) on 29 April 2011.
Menninnie Dam Project
EL5039, 4813, 4285, 4669, 4865 (Musgrave Minerals Ltd
During the past year, Musgrave spent $3.9 million on
earning up to 75%)
exploration and administration activities and received $0.29
million in regard to the 2011/2012 Financial Year Research and
Development refund.
• MGV commenced aggressive exploration program in
November 2012 after signing Heads of Agreement to
acquire up to 75% of the Project
At the end of June 2013, the Company was well resourced,
• Zinc, silver and gold mineralisation discovered at
holding $9.6 million in cash.
Tank Hill target which remains open
In October 2012, the Company signed a Heads of Agreement
with Menninnie Metals Pty Ltd on the Menninnie Dam Ag-Zn-
Pb project in the Southern Gawler Craton of South Australia.
Much of Musgrave’s exploration activities during the past year
o MDRC39 intersected 6m @ 4.9% Zn, 0.7% Pb,
62g/t Ag, 1.2g/t Au
• Silver, zinc and graphite intersected at the
Mannequin prospect
have focused on this project.
• New co-incident VTEM and silver geochemical targets
identified for further work
During the March quarter, new exploration licences for the
Musgrave tenement package were granted for a period of two
Musgrave Minerals is earning a 51% interest in the Menninnie
years, replacing the existing tenure.
MGV Geologist viewing core at Deering Hills
Dam silver-zinc-lead project in South Australia in the first
stage, and up to a 75% interest thereafter, after signing a
Heads of Agreement with Menninnie Metals Pty Ltd, a 100%
subsidiary of Terramin Australia Limited (ASX: TZN).
Menninnie Dam comprises five Exploration Licences (ELs)
covering a contiguous area of 2,471km² in the Gawler Craton,
about 100km west of Port Augusta. The project hosts two
zones, Menninnie Central and Viper, that have an Inferred
Mineral Resource of 7.7Mt at 27g/t silver, 3.1% zinc and
Drilling at Tank Hill, Menninnie Dam
4
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Figure 2: Location of the Menninnie Dam Project, South Australia
2.6% lead (estimated by Terramin in 2011 in accordance with
Au soil geochemistry. The Company drilled 13 holes into this
the 2004 JORC code) which are not closed off. The project
target during the year with encouraging results.
has significant potential to discover new economic mineral
deposits.
Drill hole MDRC39 at Tank Hill intersected 6m @ 4.9%
Zn, 0.7% Pb, 62g/t Ag, 1.2g/t Au from 133m down hole
Musgrave Minerals commenced its exploration at Menninnie
in fresh rock within a broader zone of 30m @ 1.9% Zn,
Dam in November 2012, focusing on five target areas, Tank
0.5% Pb, 21g/t Ag, 0.27g/t Au from 132m down hole. The
Hill, Mannequin, Viper South, Nonning and Phone Hill.
mineralisation is only 5km north-east of the existing Menninnie
Musgrave completed three drilling campaigns on the project
Central and Viper deposits at Menninnie Dam.
during the year, drilling 31 reverse circulation (RC) drill holes
for 5,250m and one diamond drill hole to a depth of 267m.
As a result of the mineralisation intersected at Tank Hill,
Tank Hill
MGV commenced further RC drilling in May focusing on this
prospect and following up the encouraging zinc-silver-gold
The Tank Hill target is a 2km long induced polarisation (“IP”)
and lead intersection in MDRC39. The program consisted of six
anomaly with co-incident anomalous surface Zn, Pb, Ag and
RC holes and a single diamond hole.
5
Review of Operations
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
5
Sieved sulphide at Menninnie Dam
Results include 2m @ 4.2% Zn, 0.9% Pb, 267g/t Ag, 0.44g/t
quality information is available at this stage. The graphite is
Au from 138m down hole in fresh rock within a broader zone
co-incident with a strong airborne VTEM conductor identified
of 22m @ 0.7% Zn, 0.4% Pb, 44g/t Ag, 0.09g/t Au, from
at the Mannequin target. Follow-up drilling is currently being
126m down hole in drill hole MDRC44. Current interpretation
planned.
suggests that the true width of the mineralisation will
be approximately 70-80% of the intersection widths.
Viper
Mineralisation remains open to the northwest and southeast.
Drilling at Viper targeted the up-dip projection of the
Mannequin
interpreted Ag-Pb-Zn lodes. MDRC26 at Viper intersected 6m
@ 49.4g/t Ag from 60m suggesting that the Viper lodes may
The Mannequin target is a 3km long IP anomaly. This IP
be offset by one or more faults.
response is more extensive and more intense than the
responses over the inferred resource at Menninnie Central.
Nonning
The modelled source of the IP response extends from near-
The Nonning target is a 1.5km long IP chargeability anomaly.
surface to significant depth. The area is covered by transported
The IP response is in an area of favourable geology and major
overburden making surface geochemistry ineffective. The
regional structural intersections with no previous drilling.
Mannequin target was tested with six RC drill holes.
The area is covered by thin sedimentary cover and surface
geochemical data is not yet available for this target. A single
Highly anomalous silver, zinc and total graphitic carbon (TGC)
RC hole was drilled at Nonning but failed to reach target
values were intersected (Figure 3). This includes a result of
depth due to excessive ground water. This target remains
20m @ 12.4g/t Ag from 68m down hole in weathered clay in
untested.
drill hole MDRC28. At the base of this anomalous silver zone
was 1m @ 3.5% Zn, 0.7% Pb and 21.1g/t Ag from 87m down
Surface geochemical surveys have identified a number of
hole.
encouraging Ag, Pb, Zn, Cu and Au anomalies for follow-
up exploration. The survey included analysis for low level
Further analysis of graphitic zones intersected in drill holes
silver (Ag) geochemistry which has not been undertaken
MDRC31 and MDRC32 returned a best intersection of 10m
on the Menninnie Dam tenements before. Low level silver
@ 6.3% TGC in hole MDRC32. No grain size or carbon
geochemistry through soil sampling was a key factor in the
6
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Figure 3: Menninnie Dam drill hole locations on IP chargeability image and landsat background
7
Review of Operations
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
7
discovery of the Paris silver deposit by Investigator Resources
only 20km to the west of Menninnie.
MGV undertook a 398 line km airborne VTEM survey across
the Menninnie Dam project during the June quarter. The
survey aimed to define new base metal and graphitic targets
within the Menninnie Dam project area.
The VTEM survey identified seven high-priority targets, four
of which are co-incident with silver geochemical anomalism.
Mineralised rock-chip samples up to 13.3g/t Ag were identified
within a strongly altered epithermal zone at the Erebus target.
The Erebus geochemical anomaly, where there has been no
drilling to date, is approximately 1.5km in length and is co-
incident with high quality VTEM anomalies (Figure 5).
Follow-up exploration will include additional mapping, rock-
chip sampling and infill soil geochemistry to better define
targets for drill testing.
Figure 4: Tank Hill drill hole locations and significant results on
IP chargeability image and landsat background
Figure 5: Menninnie Dam priority VTEM anomalies on silver
soil geochemical image with Paris insert for anomaly size
comparison
* JORC (2004 Edition)-compliant inferred resource for the
Menninnie Central and Viper deposits was reported by
Terramin Australia Limited (ASX: TZN) on 1st March 2011
Zone
Tonnes
x103
Zn
(%)
Pb
(%)
Ag
(%)
Pb + Zn
(%)
Total Menninnie
Central
5,240
3.5
2.7
28
6.1
Total Viper
2,460
2.3
2.4
24
4.8
Total Menninnie
Central
and Viper
7,700
3.1
2.6
27
5.7
Inferred Resource (at 2.5% Pb+Zn cut-off) as at 15 February 2011
MGV is not aware of any new information that would affect the
material nature of this resource calculation.
*Competent Person’s Statement
The information in this report that relates to Mineral Resources or Ore Reserves is based on information 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 2004 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.
8
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Deering Hills Project
EL5172 & EL5173 – formerly EL3941 & EL3942 (100%
Musgrave Minerals Ltd)
• Extensive geochemical vacuum drilling program
completed
• Regional gravity survey completed defining areas of
prospective Giles Complex rocks under cover
• Minbar and Caliban targets returned highly
anomalous nickel, copper and PGE (Platinum Group
Elements) values increasing the prospectivity for
massive Ni-Cu sulphides
• Vacuum drilling at Alvey target identified area
prospective for stratiform PGE mineralisation
• Grant of high priority Pallatu tenement
• Basement drill testing of targets planned for late in
2013
The Deering Hills Project is in the centre of the Musgrave
geological province about 200km west of the Stuart Highway
and Adelaide to Darwin rail line (Figure 6).
The focus at Deering Hills is to continue to define and develop
targets in preparation for basement drill testing for massive
nickel-copper sulphides. A total of 813 shallow geochemical
vacuum holes for more than 14,000m were drilled at Deering
Hills during the year to a maximum depth of 55m. This
drilling defined co-incident basement nickel-copper and PGE
anomalies at Minbar, Caliban (formally called West Pallatu) and
Alvey for further follow-up exploration. All three targets are
co-incident with strong gravity highs and magnetic responses
permissive with possible magmatic nickel-copper sulphide
mineralisation.
Results from shallow geochemical vacuum drilling at the
Minbar target returned highly anomalous nickel, copper and
PGE values over an area that is 1.5km in length. Peak values
at Minbar were 1847ppm Ni, 482ppm Cu and 121ppb Pt + Pd
(PGE). These values are high for shallow geochemical drilling
and suggest a sulphide source.
Previous drilling by Mithril Resources Ltd intersected a PGE
mineralised horizon with the best intersection 17.1m @
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Review of Operations
Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
9
Figure 6: Location of MGV’s Musgrave geological province tenements, South Australia.
0.49g/t Pt + Pd including 8m @ 0.77g/t Pt + Pd. Shallow
vacuum geochemical drilling by Musgrave at the Alvey target
identified a second, to date untested horizon, prospective for
stratiform PGE mineralisation similar to that in the PGE-rich
Bushveld Complex of South Africa. The geochemical target
has been defined over a strike length of approximately 2.5km
within rock types favourable to host this style of mineralisation.
At the Alvey PGE target, two detailed infill geochemical
vacuum drill lines (25m spaced holes) returned two strong gold
assays of 43ppb and 66ppb Au. These holes also contained
strong PGE, nickel and copper anomalism.
The Caliban nickel-copper geochemical target (Figure 7)
extends over 1km of strike in favourable gabbroic basement
rock types. The results at Caliban and Minbar are highly
anomalous for this style of sampling. The Caliban geochemical
anomaly is 3km along strike from the highly rated Pallatu
VTEM targets.
Vacuum drilling at Deering Hills
10 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Figure 7: Image showing new Pallatu licence with Ni-Cu vacuum geochemical
drilling result and VTEM targets (red stars) on orthoimage and VTEM B-field
image as insert
Review of Operations
11 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
11
Figure 8: Image showing new Pallatu licence with VTEM targets, co-incident Bouguer gravity anomaly and magnetic anomalies in
relation to the known Giles Complex mafic/ultramafic intrusives. The remainder of the licence is under shallow sand cover.
The vacuum geochemical drilling program also covered initial
traverses across the Lyta, Dius and Vintari targets. Ground EM
over VTEM and geochemical anomalies is planned for later in
Mimili Project
EL5174 & EL5175 – formerly EL3954 & EL3955 (100%
2013 to better define precise drill hole locations for basement
Musgrave Minerals Ltd)
drill testing at Deering Hills.
• Geochemical sampling completed at Ragnar target
The granting of the Pallatu tenement (EL5317) in August 2013
• Regional soil geochemical program identified nickel
is a significant step towards accessing and drill testing ten high
and copper targets for follow-up
priority VTEM targets within this new exploration licence.
• New VTEM anomalies identified at West Graben
The new licence (Figure 7) covers a very prospective area of
known Giles Complex intrusives adjacent to a number of high
priority VTEM conductors modelled under shallow sand cover.
Giles Complex intrusives are known to host nickel sulphide
mineralisation elsewhere in the Musgrave Province. A VTEM
survey flown by Musgrave Minerals to detect massive sulphide
mineralisation highlighted a cluster of 10 priority conductive
targets at Pallatu for follow-up.
The VTEM targets at Pallatu are along strike from the
anomalous nickel-copper-PGE (platinum group element)
geochemical anomalies identified from shallow vacuum drilling
at Caliban and Minbar (Figure 7) and are co-incident with a
large gravity anomaly and magnetic response (Figure 8). This
is consistent with the geophysical response from other known
magmatic nickel sulphide deposits of this model type.
Musgrave Minerals owns 100% of the Mimili Project which
consists of two exploration licences, EL5174 and EL5175.
The project is situated 40km west of the Stuart Highway and
approximately 70km north-west of Marla in South Australia
(Figure 6).
Moorilyanna Prospect
The Moorilyanna copper-gold prospect is located on tenement
EL5175 less than 40km from the Stuart Highway and Adelaide
to Darwin rail line.
Musgrave Minerals undertook a regional soil geochemical
program over the Ragnar target area at Moorilyanna. The
survey successfully identified a number of copper geochemical
targets for follow-up exploration including an anomaly
overlying the untested IP target near MOORC016 (Figure 9).
The 2012 VTEM survey delineated three local bedrock
conductors in the south west corner of EL5175 referred to
as the West Graben targets. Follow up work will include
geochemical sampling and ground EM.
12 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Figure 9: Schematic gridded image of Ragnar copper geochemical targets shown on orthoimage
Bryson Hill landscape
Review of Operations
13 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
13
Mimili Regional
Mt Woodroffe Project
Musgrave Minerals undertook a regional mapping and surface
geochemical sampling over the Mail Road target area in the
EL5171 – formerly EL3940 (100% Musgrave Minerals Ltd)
northern part of EL5175. The survey confirmed a number
• Airborne VTEM survey identifies targets for further
of copper and nickel geochemical targets for follow-up
exploration
exploration including anomalous surface copper and nickel
samples at Valeri containing peak values of 308ppm Cu
and 491ppm Ni. This is encouraging as the Valeri target is
coincident with both an aeromagnetic and gravity high.
Further follow-up is planned.
• Surface Ni-Cu geochemical soil anomalies identified
at the Rimmer target
• Rock chip sampling at the Kochanski target returned
anomalous peak values of 0.14% Cu and 727ppm Ni.
The Mt Woodroffe Project is situated on EL5171 within a large,
geologically complex area, straddling the Mann Fault Complex
and Woodroffe Thrust Zone in the central Musgrave Province
(Figure 6). It covers an area of approximately 424km2.
Musgrave flew a 645 line km airborne VTEM survey over the
Mt Woodroffe tenement and identified a number of priority
targets for follow-up including the Lister, Rimmer, Skutters,
Kochanski and Starbug targets (Figure 10). All five targets are
co-incident with regional gravity and magnetic highs consistent
with the magmatic nickel-copper sulphide model.
Follow-up of these targets commenced with Musgrave
conducting geochemical sampling over the targets in the June
quarter. A number of surface geochemical soil anomalies
were identified including peak copper and nickel anomalism
of 308ppm Cu and 171ppm Ni at the Rimmer target and
443ppm Ni at the Skutters target.
Further exploration including additional soil and rock-chip
sampling and ground EM surveys are planned.
Field camp at Moorilyanna
14 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Figure 10: Mt Woodroffe VTEM targets with VTEM colour EM
amplitude image overlaying ortho-image
Bryson Hill Project
EL5205 – formerly EL4047 (Musgrave Minerals Ltd
earning 75% from Pitjantjatjara Mining Company Pty
Limited and Zeil No. 1 Pty Limited)
The Bryson Hill Project covers an area of approximately
1,535km2 and is located in the far easterly portion of the
SA Musgrave Province. The tenement is covered by spinifex
sand plains and dunes with only very minimal sub-crop. Little
previous exploration has been undertaken within the tenement
area.
Musgrave flew an airborne VTEM survey over portions of
the large Bryson Hill project area and identified a number
of priority targets for follow-up. Mapping and geochemical
sampling commenced at Bryson Hill in the June quarter.
Other Musgrave Province Projects
During the year, Musgrave Minerals submitted heritage survey
requests for tenements EL4850, EL4851, EL4852 and EL4853.
Heritage surveys have commenced on EL4850 with exploration
due to commence later this year.
Musgrave Minerals holds a 100% interest in three of the
licences (EL4850, EL4852, and EL4853) and can earn up to a
75% interest in EL4851.
The new licences cover areas that are considered prospective
for magmatic nickel-copper sulphide deposits and are
interpreted to be predominantly covered by thin (<20m)
aeolian sand with minor outcropping and sub-cropping
geology. With the newly granted licences, Musgrave Minerals
has a total of 10 granted exploration licences and 32
exploration licence applications in the South Australian portion
of the Musgrave Province.
Musgrave Principal Geologist Justin Gum mapping at
Mt Woodroffe
Review of Operations
15 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
15
Competent Person’s Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Waugh. Mr Waugh 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
of Musgrave Minerals Limited. Mr Waugh has sufficient industry experience to qualify as a Competent Person as defined in the 20012 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 their information in the form and context in which it appears.
Forward Looking Statements
(among others) the risk of adverse or unanticipated market, financial or
This report has been prepared by Musgrave Minerals Ltd (MGV). The
information contained in this report is a professional opinion only and is
given in good faith. Certain information in this document has been derived
from third parties and though Musgrave Minerals has no reason to believe
that it is not accurate, reliable or complete, it has not been independently
audited or verified by MGV.
This report is in summary form and does not purport to be all inclusive or
complete. Recipients should conduct their own investigations and perform
their own analysis in order to satisfy themselves as to the accuracy and
completeness of the information, statements and opinions contained.
This is for information purposes only. Neither this nor the information
contained in it constitutes an offer, invitation, solicitation or
recommendation in relation to the purchase or sale of MGV shares in
any jurisdiction. This does not constitute investment advice and has
been prepared without taking into account the recipient’s investment
objectives, financial circumstances or particular needs and the opinions
and recommendations in this report are not intended to represent
recommendations of particular investments to particular persons.
Recipients should seek professional advice when deciding if an investment
is appropriate. All securities transactions involve risks, which include
political developments.
To the fullest extent permitted by law, MGV, its officers, employees, related
bodies corporate, agents and advisers do not make any representation
or warranty, express or implied, as to the currency, accuracy, reliability
or completeness of any information, statements, opinions, estimates,
forecasts or other representations contained in this report. No responsibility
for any errors or omissions from this arising out of negligence or otherwise
is accepted.
Any forward-looking statements included in this document involve
subjective judgment and analysis and are subject to uncertainties, risks
and contingencies, many of which are outside the control of, and may
be unknown to, MGV. In particular, they speak only as of the date of
this document, they assume the success of MGV’s strategies, and they
are subject to significant regulatory, business, competitive and economic
uncertainties and risks. Actual future events may vary materially from the
forward-looking statements and the assumptions on which the forward-
looking statements are based. Recipients of this document (Recipients)
are cautioned to not place undue reliance on such forward-looking
statements.
16 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Review of Operations
Summary of Tenements
Tenement
EL1996/260
EL1996/262
EL1996/336
EL1996/337
EL1996/338
EL1996/339
EL1996/340
EL1996/341
EL1996/342
EL1996/534
EL1997/040
EL1997/053
EL1997/055
EL1997/056
EL1997/057
EL1997/058
EL1997/059
EL1997/060
EL1997/061
EL1997/062
EL1997/063
EL1997/143
EL1997/144
EL1997/186
EL1997/297
EL1997/321
EL1997/468
EL1997/605
EL1999/035
EL2001/031
Previous
Tenement
ID
Project
Locality
Status
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave PMC JV
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
Musgrave
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Area
(km2)
519
463
653
1854
620
1301
2198
1230
2136
1783
1507
1013
595
1241
1656
1721
2308
666
2108
1926
1957
1040
835
1815
2015
624
215
152
692
338
MGV
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
0% (may earn up to 75%)
100%
100%
100%
100%
100%
100%
100%
100%
100%
Summary of Tenements
17 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
17
Previous
Tenement
ID
Tenement
EL2008/154
EL2008/156
Project
Locality
Status
Musgrave
Musgrave
Musgrave
Musgrave PMC JV
Musgrave
Musgrave
EL3940
Musgrave
EL3941
Musgrave
EL3942
Musgrave
EL3954
Musgrave
EL3955
Musgrave
EL4047
Musgrave PMC JV
Musgrave-
Menninnie Metals
JV
Musgrave-
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
SA
Area
(km2)
37
12
2385
2360
1342
1256
424
427
565
714
1906
1535
MGV
Interest
100%
100%
100%
0% (may earn up to 75%)
100%
100%
100%
100%
100%
100%
100%
0% (may earn up to 75%)
Application
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
101
0% (may earn up to 75%)
Menninnie Metals
SA
Granted
312
0% (may earn up to 75%)
JV
Musgrave-
Menninnie Metals
SA
Granted
208
0% (may earn up to 75%)
JV
Musgrave-
Menninnie Metals
SA
Granted
988
0% (may earn up to 75%)
JV
Musgrave-
Menninnie Metals
SA
Granted
862
0% (may earn up to 75%)
JV
EL4850
EL4851
EL4852
EL4853
EL5170
EL5171
EL5172
EL5173
EL5174
EL5205
EL5039
EL4813
EL4285
EL4669
EL4865
18 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Summary of Tenements
Appendix 1: Summary of Menninnie Dam Drill Hole Locations and Significant Results
Drill Hole
ID
Drill
Type
Prospect
Easting
(m)
Northing
(m)
Az
Dip
(degrees)
RL
Total
Depth
(m)
From
(m)
Interval
(m)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au
(g/t)
MDRC16
MDRC17
MDRC18
MDRC19
MDRC20
MDRC21
MDRC22
MDRC23
MDRC24
RC
RC
RC
RC
RC
RC
RC
RC
RC
Phone Hill
629646
6383501
283
Phone Hill
629647
6383103
275
Phone Hill
629893
6383505
277
Phone Hill
630103
6383515
280
Phone Hill
630604
6383554
280
Phone Hill
630304
6383903
96
Phone Hill
630253
6383904
106
Phone Hill
629895
6384620
277
Viper
632877
6385154
270
-60
-60
-60
-60
-60
-60
-60
-60
-60
294
90
296
120
302
150
310
319
72
72
319
144
318
198
303
303
48
84
MDRC25
RC
Viper
632943
6385007
270
-60
309
125
MDRC26
MDRC27
RC
RC
Viper
Viper
632950
6384801
270
632885
6385276
270
-60
-60
MDRC28
RC
Viper
635998
6387546
270
-60
MDRC29
RC Mannequin
635755
6387645
270
MDRC30
RC Mannequin
635835
6387649
270
-60
-60
287
156
275
156
284
156
Including
276
102
280
102
MDRC31
RC Mannequin
635247
6388556
270
-60
272
132
MDRC32
RC Mannequin
635337
6388557
270
-60
276
90
19
32
0
51
60
48
68
87
13
30
33
50
66
84
89
121
55
88
55
88
MDRC33
MDRC34
MDRC35
MDRC36
MDRC37
RC
RC
RC
RC
RC
Tank Hill
635207
6392249
277
Tank Hill
635003
6392255
97
Tank Hill
635297
6392267
277
Tank Hill
635194
6392406
270
Tank Hill
635346
6391986
270
-60
-60
-60
-60
-60
265
198
149
265
151
268
158
268
109
NSA
NSA
NSA
NSA
NSA
NSA
NSA
0.46
NSA
0.14
-
-
0.42
0.42
0.56
1.23
-
4.8
2.3
2.9
0.46
0.47
49.4
0.75
0.90
4.0
0.26
0.07
12.4
3.49
0.74
21.1
NSA
-
-
-
-
-
0.43
0.45
-
-
-
-
-
-
-
0.44
0.12
7.3
5.3
4.5
11.4
4.2
1.0
-
2.4
5.7
-
-
-
-
-
0.40
-
-
5.7
0.40
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.72
0.06
2.9
0.02
NSA
NSA
NSA
2
1
1
1
6
2
20
1
1
1
1
1
1
1
9
1
1
1
1
1
1
273
199
125
3
0.34
0.04
5.70
0.03
Summary of Tenements
19 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
19
Drill
Hole ID
Drill
Type
Prospect
Easting
(m)
Northing
(m)
Az
Dip
(degrees)
RL
Total
Depth
(m)
From
(m)
Interval
(m)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au
(g/t)
MDRC38
RC
Mannequin
North
635593
6389679
270
-60
220
121
MDRC39
RC
Tank Hill
636002
6391753
180
-60
261
211
including
MDRC39
RC
Tank Hill
636002
6391753
180
-60
261
211
MDRC40
RC
Tank Hill
635998
6391696
180
-60
262
156
MDRC40
RC
Tank Hill
635998
6391696
180
-60
262
156
including
MDRC40
RC
Tank Hill
635998
6391696
180
-60
262
156
MDRC41
RC
Tank Hill
636003
6391814
180
-60
262
210
MDRC41
RC
Tank Hill
636003
6391814
180
-60
262
210
including
MDRC41
RC
Tank Hill
636003
6391814
180
-60
262
210
MDRC42
RC
Tank Hill
635942
6391633
180
-60
260
234
MDRC42
RC
Tank Hill
635942
6391633
180
-60
260
234
including
51
56
66
84
91
95
97
101
132
6
168
181
10
16
24
25
35
61
75
86
98
102
124
70
95
101
174
180
189
190
191
196
199
41
45
66
69
70
1
1
1
4
1
1
2
1
0.04
0.01
5.10
0.02
0.06
0.02
10.10
0.02
0.59
0.22
1.20
0.02
0.03
0.03
5.10
-
0.04
0.03
4.60
0.02
0.06
0.02
4.70
0.05
0.03
4.75
0.07
0.26
9.10
-
-
-
30
1.90
0.46
20.51
0.27
4.92
0.74
62.13
1.17
1
1
1
1
6
1
2
1
1
1
1
2
1
2
1
1
3
2
1
3
1
1
1
1
1
1
5
1
0.47
0.20
17.30
0.03
0.47
0.05
3.80
0.10
0.01
0.56
0.90
0.01
0.46
0.70
-
-
0.06
0.26
7.93
0.03
0.07
0.49
19.70
0.12
0.03
0.08
4.60
0.04
0.44
0.06
1.90
0.64
0.10
2.50
-
-
0.76
0.19
6.40
0.11
0.37
0.06
9.00
0.03
0.57
0.07
2.35
0.01
0.31
0.04
5.90
-
0.05
0.35
5.80
0.05
0.02
0.01
4.00
0.23
0.13
0.26
8.60
0.18
0.07
0.02
6.30
0.10
0.21
0.71
21.40
0.33
0.09
0.13
10.90
-
1.58
1.04
12.60
0.01
3.03
1.91
21.40
0.39
0.26
6.60
-
-
0.30
0.10
7.50
0.06
0.00
0.03
6.40
0.10
0.51
0.04
0.70
-
0.29
0.18
4.50
0.02
0.67
0.33
6.54
0.04
1.55
0.48
10.50
0.01
20 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Summary of Tenements
Drill Hole
ID
Type Prospect Easting
Drill
(m)
Northing
(m)
Az
Dip
(degrees)
RL
Total
Depth
(m)
From
(m)
Interval
(m)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au
(g/t)
MDRC42
RC
Tank Hill
635942
6391633
180
-60
260
234
MDRC43
RC
Tank Hill
636066
6391747
180
-60
258
114
MDRC44
RC
Tank Hill
636167
6391751
180
-60
264
192
MDRC44
RC
Tank Hill
636167
6391751
180
-60
264
192
including
MDRC44
RC
Tank Hill
636167
6391751
180
-60
264
192
MDRC44
RC
Tank Hill
636167
6391751
180
-60
MDRC44
MDRC45
RC
RC
Tank Hill
636167
6391751
180
Tank Hill
635838
6391532
270
-60
-60
264
192
including
264
192
262
96
76
157
188
204
211
40
77
80
81
41
61
70
88
89
120
126
138
143
2
1
2
5
1
1
1
1
1
5
1
2
6
1
4
0.24
0.13
4.85
0.02
0.46
0.04
0.90
0.06
0.03
9.45
-
-
0.03
0.01
5.42
0.13
0.01
0.01
4.80
0.11
0.17
0.05
4.60
0.32
0.09
6.40
1.34
0.05
1.00
0.28
0.05
4.00
-
-
-
-
0.01
0.02
7.50
0.21
0.11
0.08
16.30
0.09
0.19
0.07
6.25
0.04
0.39
0.42
23.72
0.06
0.60
1.69
88.50
0.07
0.39
0.17
8.10
-
22
0.71
0.38
44.1
0.09
2
5
4.17
0.87
267
0.44
0.19
0.19
10.50
0.05
NSA
156.00
2.50
0.30
0.07
162.50
1.50
0.22
0.09
5.4
9.2
0.11
0.08
MD117
Diam Tank Hill
636002
6391785
180
-60
262
267
171.50
1.00
0.71
0.18
13.7
0.04
194.18
0.82
0.05
0.07
7.5
0.11
206.15
0.70
0.34
0.15
13.3
0.04
NORC01
RC
Nonning
638829
6395996
270
-60
235
103
NSA
Drill Hole
ID
Drill
Type
Prospect
Easting
(m)
Northing
(m)
Azimuth
(degrees)
Dip
(degrees)
Total
Depth
(m)
From
(m)
To
(m)
Interval
(m)
TGC
(%)
MDRC31
RC
Mannequin
635247
6388556
270
-60
132
MDRC32
RC
Mannequin
635337
6388557
270
-60
90
44
60
70
85
45
70
75
87
1
10
5
2
7.1*
6.3
5.9
6.2*
Notes (see JORC 2012 Table 1 Menninie Dam Project for further details)
1. All intervals recorded in this table are above 0.4% Zn and containing no more than 1m of internal dilution below 0.4% Zn
2. High grade interval is above 1.0% Zn
3. NSA (no significant assay) – No assay above 4g/t Ag, 0.4% Zn or 0.4% Pb or 5.0% TGC
4. No high grade cut was used
5. g/t (grams per tonne)
Summary of Tenements
21 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
21
Appendix 2a: Summary of MGV Deering Hills Vacuum Drill Hole Locations and Significant Results
Drill Hole
ID
Target
Easting
(m)
Northing
(m)
Azimuth
(degrees)
Dip
(degrees)
Total
Depth
(m)
From
(m)
To
(m)
Interval
(m)
Ni
(ppm)
Cu
(ppm)
Pt +
Pd
(ppb)
DEEVAC220
Alvey
612000
7095750
DEEVAC220
Alvey
612000
7095750
DEEVAC228
Alvey
612500
7094750
DEEVAC892
Alvey
612500
7095400
DEEVAC1078
Alvey
613101
7094902
DEEVAC1079
Alvey
613098
7094925
DEEVAC1079
Alvey
613098
7094925
DEEVAC1080
Alvey
613099
7094952
DEEVAC1080
Alvey
613099
7094952
DEEVAC1081
Alvey
613102
7094976
DEEVAC1082
Alvey
613100
7094998
DEEVAC1083
Alvey
613099
7095026
DEEVAC1083
Alvey
613099
7095026
DEEVAC1084
Alvey
613101
7095053
DEEVAC1084
Alvey
613101
7095053
DEEVAC1085
Alvey
613096
7095076
DEEVAC1089
Alvey
612001
7095824
DEEVAC1090
Alvey
611996
7095854
DEEVAC1091
Alvey
612000
7095873
DEEVAC1093
Alvey
611700
7095550
DEEVAC279
Caliban
587500
7099500
DEEVAC1170 Caliban
587506
7099699
DEEVAC1172 Caliban
587500
7099900
DEEVAC1176 Caliban
587500
7100399
DEEVAC083
Minbar
598500
7098000
DEEVAC083
Minbar
598500
7098000
DEEVAC083
Minbar
598500
7098000
DEEVAC104
Minbar
601500
7096500
DEEVAC361
Minbar
598000
7098500
DEEVAC361
Minbar
598000
7098500
DEEVAC690
Minbar
599000
7098700
DEEVAC695
Minbar
599000
7098100
DEEVAC722
Minbar
598000
7099200
DEEVAC725
Minbar
597500
7098300
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
28.8
27
28.8
28.8
25.2
27
12.6
10.8
12.6
17.4
15.6
17.4
37.2
35.4
37.2
37.2
33.6
35.4
37.2
35.4
37.2
37.2
33.6
35.4
37.2
35.4
37.2
37.2
35.4
37.2
37.2
35.4
37.2
37.2
31.8
33.6
37.2
33.6
35.4
33.6
30
31.8
33.6
31.8
33.6
31.8
28.2
30
28
24.6
26.4
28.65
26.4
28.2
30
28.2
30
13.8
12
13.8
53.4
49.8
51.6
37.2
22.8
24.6
33
24.6
26.4
26.4
17.2
19
25.2
18
19.8
25.2
19.8
21.6
25.2
21.6
23.4
29.7
6.6
6.6
27
3
4.8
28.8
4.8
6.6
15.6
13.8
15.6
28.2
26.4
28.2
13.8
8.4
12
6.6
13.8
8.4
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
485
486
552
337
775
622
566
456
489
486
551
801
550
509
444
406
525
640
416
764
446
614
931
625
1397
619
1847
1044
946
976
483
400
972
524
174
155
325
180
142
121
107
136
107
145
210
318
234
230
161
141
121
155
100
121
402
302
163
442
305
135
331
482
59
105
364
308
90
412
331
309
116
139
109
71
40
60
37
119
85
172
60
64
27
74
176
161
104
35
6
16
10
41
103
114
56
56
34
84
121
103
37
70
22 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Summary of Tenements
Notes (see JORC 2012 Table 1. Musgrave Project for further details)
1. All intervals with coincident Ni (>400ppm Ni) and Cu (>100ppm Cu) are recorded here
2. NSA (no significant assay)
3. ppm (parts per million)
4. ppb (parts per billion)
Appendix 2b: Summary of Historical Mithril Resources Ltd Deering Hills RC Drill Hole Locations
and Significant Results
Drill
Hole ID
Target Easting
(m)
Northing
(m)
Azimuth
(degrees)
Dip
(degrees)
To (m)
From
(m)
Interval
(m)
Ni
(ppm)
Cu
(ppm)
Pt + Pd
(ppb)
Total
Depth
(m)
MAD 1
Alvey
611764
7095200
389
-60
358
MAD 2
Alvey
611960
7095135
399
-60
358
including
273
277
358
382
386
287.4
14.4
283
360.8
399.1
394
6
2.8
17.1
8
461
381
546
485
531
90
90
335
181
223
465
813
451
494
771
Notes (see JORC 2012 Table 1, Musgrave Project for
7. Sample preparation by dry pulverisation and multi element
further details)
1. Co-ordinates are in UTM grid (GDA94 Z52) and have been
measured by hand-held GPS
2. Drilling was undertaken utilising a diamond drilling rig
3. Diamond core was cut using a manually operated core saw
4. All samples are analysed at geological intervals between
0.2 and 2m lengths
5. Geological sample logging was undertaken at variable
intervals based on geology with colour, alteration and
lithology recorded for each interval
6. Sample preparation and sample analysis is undertaken by
ALS Chemex
analysis by four acid digest (hydrochloric, nitric, perchloric
and hydrofluoric acid) and ICP-AES to acceptable detection
limits and Au, Pt and Pd by 30g FA 1CP-AES
8. Analysis for a total of 36 elements is recorded including
possible deleterious elements such as arsenic
9. An accurate dip and strike of the mineralisation is yet to be
determined and the true width of the intercepts is not yet
known
10. ppm (parts per million)
11. ppb (parts per billion)
Summary of Tenements
23 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
23
The following section is provided to ensure compliance with the JORC (2012) requirements for the reporting of exploration results.
Menninnie Dam Project
JORC 2012 TABLE 1
Section 1 Sampling Techniques and Data
Criteria
Explanation
Commentary
Sampling techniques
Nature and quality of sampling (eg cut
Drilling is undertaken on a priority basis with
channels, random chips, or specific
drill type and hole spacing influenced by
specialised industry standard measurement
geological, topographical and physical factors.
tools appropriate to the minerals under
Sampling is undertaken using standard
investigation, such as down hole gamma
industry practices.
sondes, or handheld XRF instruments, etc).
These examples should not be taken as
limiting the broad meaning of sampling.
Surface geochemical sampling is undertaken
following standard industry practice using
stainless steel or nylon mesh sieves.
Include reference to measures taken to ensure
Drill hole co-ordinates are in UTM grid
sample representivity and the appropriate
(GDA94 Z53) and have been measured by
calibration of any measurement tools or
hand-held GPS with an accuracy of ±4 metres.
systems used.
Aspects of the determination of mineralisation
Diamond drilling is used to obtain samples
that are Material to the Public Report. In
varying in length from 0.2 to 2m. Reverse
cases where ‘industry standard’ work has
circulation (RC) drilling was used to obtain 1m
been done this would be relatively simple (eg
samples.
‘reverse circulation drilling was used to obtain
1m samples from which 3kg was pulverised
to produce a 30g charge for fire assay’).
In other cases more explanation may be
required, such as where there is coarse gold
that has inherent sampling problems. Unusual
commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of
detailed information.
All RC samples are chips and are
homogenously split using a cyclone splitter
and analysed as 5m composites or individual
1m samples. Individual 1m samples were
analysed where elevated base metals or
favourable alteration was identified.
Individual samples weigh less than 3kg to
ensure total preparation at the laboratory
pulverization stage.
The sample size is deemed appropriate for the
grain size of the material being sampled.
Drilling techniques
Drill type (eg core, reverse circulation, open-
A combination of RC and diamond drilling is
hole hammer, rotary air blast, auger, Bangka,
undertaken. Diamond core is a combination
sonic, etc) and details (eg core diameter, triple
of NQ2 and HQ. Drill core is orientated
or standard tube, depth of diamond tails,
using a down hole spear and structural
face-sampling bit or other type, whether core
measurements recorded in “Geo-calculator”
is oriented and if so, by what method, etc).
software program.
Drill sample recovery
Method of recording and assessing core and
Diamond core recoveries are logged and
chip sample recoveries and results assessed.
recorded in the database. No significant core
loss issues were identified.
Total RC sample weights are monitored but
not individually recorded in reconnaissance
drilling and as such sample recovery is not
accurately measured.
24 Musgrave Minerals Ltd
Musgrave Minerals Ltd
JORC 2012 Table 1
Criteria
Explanation
Commentary
Drill sample recovery (continued)
Measures taken to maximise sample recovery
Diamond core is reconstructed into
and ensure representative nature of the
continuous intervals on angle iron racks for
samples.
orientation and reconciliation against core
block markers. Rod and metre counts are
routinely carried out by the driller.
RC samples are split using a cyclone or riffle
splitter to ensure representative sampling.
Composite samples are combined using a
spear (tube) sampler.
Whether a relationship exists between sample
No bias has been observed between sample
recovery and grade and whether sample bias
recovery and grade.
may have occurred due to preferential loss/
gain of fine/coarse material.
Logging
Whether core and chip samples have been
Geotechnical logging was carried out on
geologically and geotechnically logged to a
diamond core for recovery and RQD. All
level of detail to support appropriate Mineral
geological, structural and alteration related
Resource estimation, mining studies and
observations are stored in the database for
metallurgical studies.
both RC and diamond core.
Whether logging is qualitative or quantitative
Logging of lithology, structure, alteration,
in nature. Core (or costean, channel, etc)
mineralisation, colour and other features of
photography.
core or RC chips is undertaken on a routine
basis. Both wet and dry photography of
diamond core is undertaken on a tray by tray
basis.
The total length and percentage of the
All drill holes are logged in full.
relevant intersections logged.
Sub-sampling techniques and sample
If core, whether cut or sawn and whether
Diamond core is cut and sampled on
preparation
quarter, half or all core taken.
geological intervals. A diamond core saw was
used to cut the core and selected half core
intervals were submitted for analysis.
If non-core, whether riffled, tube sampled,
RC samples are cyclone split at 1m intervals
rotary split, etc and whether sampled wet or
and tube sampled as 5m composites. All
dry.
measures are taken to maintain a dry sample
although some samples are wet when
significant groundwater is intersected.
For all sample types, the nature, quality and
Sample preparation and base metal and
appropriateness of the sample preparation
precious metal analysis is undertaken by
technique.
Intertek Genalysis, in Wingfield, South
Australia.
Sample preparation by dry pulverisation to
90% passing 75 micron.
Quality control procedures adopted for
Field QC procedures involve the use of
all sub-sampling stages to maximise
certified reference standards, duplicates and
representivity of samples.
blanks at appropriate intervals.
Measures taken to ensure that the sampling is
Sampling was carried out using MGV
representative of the in situ material collected,
protocols and QAQC procedures as per
including for instance results for field
industry best practice. Duplicate samples are
duplicate/second-half sampling.
routinely checked against originals.
Whether sample sizes are appropriate to the
Sample sizes are considered appropriate for
grain size of the material being sampled.
the commodities and elements explored and
analysed for.
JORC 2012 Table 1
25 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
25
Criteria
Explanation
Commentary
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the
Drill sample analysis is undertaken by Intertek
assaying and laboratory procedures used and
Genalysis, in Wingfield, South Australia,
whether the technique is considered partial
multi element analysis by four acid total
or total.
digest (hydrochloric, nitric, perchloric and
hydrofluoric acid) and ICP-OES and ICP-MS to
acceptable detection limits and Au by FA25/
MS.
Analysis for a total of 37 elements is recorded.
Sample preparation and total graphitic carbon
(TGC) analysis was undertaken by Intertek
Genalysis, in Maddington, Western Australia.
Sample preparation by dry pulverisation and
total graphitic carbon analysis by CS Analyser
to 0.1% TGC.
Soil geochemical sample analysis is
undertaken by ACME Labs in Vancouver,
Canada. Multi element analysis by aqua regia
digestion Ultratrace ICP-MS analysis (1F05 &
1F04)
For geophysical tools, spectrometers,
No geophysical tools were used to estimate
handheld XRF instruments, etc, the
mineral or element percentages. A portable
parameters used in determining the analysis
XRF, Niton XL3t 950 GOLD+ was used to
including instrument make and model,
assist with sample selection intervals for
reading times, calibrations factors applied and
laboratory analysis.
their derivation, etc.
Nature of quality control procedures adopted
In addition to MGV standards, duplicates
(eg standards, blanks, duplicates, external
and blanks, Genalysis incorporate laboratory
laboratory checks) and whether acceptable
QAQC including standards, blanks and
levels of accuracy (ie lack of bias) and
repeats as a standard procedure. Certified
precision have been established.
reference materials that are relevant to the
type and style of mineralisation targeted are
inserted at regular intervals.
ACME incorporate laboratory QAQC including
standards, blanks and repeats as a standard
procedure.
Verification of sampling and assaying
The verification of significant intersections by
At least two company representatives verify
either independent or alternative company
significant intersections including , either the
personnel.
Managing Director, Exploration Manager,
Principal Geologist or Project Geologist.
The use of twinned holes.
No twin holes have yet been drilled by MGV.
Documentation of primary data, data entry
Primary data is collected using a standard set
procedures, data verification, data storage
of Excel templates on a Toughbook laptop
(physical and electronic) protocols.
computer using lookup codes. Geological
sample logging was undertaken on one metre
intervals for RC drilling with colour, structure,
alteration and lithology recorded for each
interval. Data is verified before loading to a
CSA Global database. Geological logging of
all diamond core was undertaken.
Discuss any adjustment to assay data.
No adjustments or calibrations were made to
any assay data reported by MGV.
26 Musgrave Minerals Ltd
Musgrave Minerals Ltd
JORC 2012 Table 1
Criteria
Explanation
Commentary
Location of data points
Accuracy and quality of surveys used to locate
Drill hole co-ordinates and surface
drill holes (collar and down-hole surveys),
geochemical sample locations are in UTM grid
trenches, mine workings and other locations
(GDA94 Z53) and have been measured by
used in Mineral Resource estimation.
hand-held GPS with an accuracy of ±4 metres.
Down hole surveys were undertaken utilised
a single shot camera recording at intervals
varying between 12 and 30m.
Specification of the grid system used.
Drill hole co-ordinates are in UTM grid
(GDA94 Z53)
Quality and adequacy of topographic control.
Drill hole RL’s are approximate using hand
held GPS.
Data spacing and distribution
Data spacing for reporting of Exploration
Variable drill hole spacings were used to
Results.
adequately test targets.
Soil samples were collected on variable grid
spacings.
Whether the data spacing and distribution is
The mineralisation has not yet been
sufficient to establish the degree of geological
demonstrated to have sufficient continuity to
and grade continuity appropriate for the
support the definition of Mineral Resource
Mineral Resource and Ore Reserve estimation
and Reserves under the classification applied
procedure(s) and classifications applied.
under the 2012 JORC Code.
Whether sample compositing has been
Composite samples on 5m intervals were
applied.
undertaken outside visually mineralised zones
to determine background responses.
Orientation of data in relation to geological
Whether the orientation of sampling achieves
The precise dip and strike of the
structure
unbiased sampling of possible structures and
mineralisation is not yet known and it is
the extent to which this is known, considering
unclear at this stage whether any sampling
the deposit type.
has a set bias.
If the relationship between the drilling
No orientation based sampling bias is known
orientation and the orientation of key
at this time.
mineralised structures is considered to have
introduced a sampling bias, this should be
assessed and reported if material.
Sample security
The measures taken to ensure sample security. Chain of custody is managed by MGV.
Samples are stored on site and transported
to Intertek Genalysis in Wingfield, South
Australia by a licenced reputable transport
company. When at Genalysis samples are
stored in a locked yard before being processed
and tracked through preparation and analysis
using the Lab Track system.
Audits or reviews
The results of any audits or reviews of
No external audits or reviews of sampling
sampling techniques and data.
techniques and data have been undertaken.
JORC 2012 Table 1
27 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
27
Section 2 Reporting of Exploration Results
Criteria
Explanation
Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and
All drilling has been within tenements EL5039
ownership including agreements or material
and EL4813 within the Menninnie Dam Joint
issues with third parties such as joint ventures,
Venture between Musgrave Exploration Pty
partnerships, overriding royalties, native
Ltd, a wholly owned subsidiary of Musgrave
title interests, historical sites, wilderness or
Minerals Ltd and Menninnie Metals Pty Ltd, a
national park and environmental settings.
wholly owned subsidiary of Terramin Australia
Limited. Musgrave has the right to earn a
51% interest in the Menninnie Dam Project
in the first stage, and up to a 75% interest
thereafter.
The tenements are within the Gawler
Range Aboriginal Corporation, Native Title
Determination Area.
Exploration done by other parties
Acknowledgment and appraisal of exploration
Terramin Australia and other parties have
The security of the tenure held at the time of
The tenements are in good standing and no
reporting along with any known impediments
known impediments exist.
to obtaining a licence to operate in the area.
by other parties.
historically held the area but very little
basement drilling has been undertaken
outside the Menninnie Central and Viper
deposit areas.
Geology
Deposit type, geological setting and style of
Musgrave is exploring for multi commodity
mineralisation.
style deposits consistent with porphyry-
epithermal style systems.
Drill hole Information
A summary of all information material to
Refer to appendix 1 in the body of this report.
the understanding of the exploration results
including a tabulation of the following
information for all Material drill holes:
• easting and northing of the drill hole collar
• elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
• dip and azimuth of the hole
• down hole length and interception depth
• hole length.
Data aggregation methods
In reporting Exploration Results, weighting
Refer to notes below appendix 1 in the body
averaging techniques, maximum and/or
of this report.
minimum grade truncations (eg cutting of
high grades) and cut-off grades are usually
Material and should be stated.
Where aggregate intercepts incorporate
Refer to notes below appendix 1 in the body
short lengths of high grade results and
of this report.
longer lengths of low grade results, the
procedure used for such aggregation should
be stated and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of
No metal equivalent values are currently used
metal equivalent values should be clearly
for reporting of exploration results.
stated.
28 Musgrave Minerals Ltd
Musgrave Minerals Ltd
JORC 2012 Table 1
Criteria
Explanation
Commentary
Relationship between mineralisation widths
These relationships are particularly important
An accurate dip and strike and the controls
and intercept lengths
in the reporting of Exploration Results.
on mineralisation are yet to be determined
and the true width of the intercepts is not yet
known.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (eg ‘down hole
length, true width not known’).
Diagrams
Appropriate maps and sections (with scales)
Refer to figures 1, 2, 3, 4 and 5 and Appendix
and tabulations of intercepts should be
1 in the body of this report.
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting
Where comprehensive reporting of all
All drill results are reported.
Exploration Results is not practicable,
representative reporting of both low and high
grades and/or widths should be practiced
to avoid misleading reporting of Exploration
Results.
Other substantive exploration data
Other exploration data, if meaningful and
All material results from geochemical and
material, should be reported including (but
geophysical surveys related to these prospects
not limited to): geological observations;
have previously been reported.
geophysical survey results; geochemical survey
results; bulk samples – size and method of
treatment; metallurgical test results; bulk
density, groundwater, geotechnical and
rock characteristics; potential deleterious or
contaminating substances.
Analysis for a total of 37 elements is
undertaken including possible deleterious
elements such as arsenic. Anomalous results
are reported.
Further work
The nature and scale of planned further
A range of exploration techniques are being
work (eg tests for lateral extensions or depth
considered to progress exploration including
extensions or large-scale step-out drilling).
additional drilling.
Diagrams clearly highlighting the areas of
Refer to figures, 3, 4 and 5 in the body of this
possible extensions, including the main
report.
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
JORC 2012 Table 1
29 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
29
Musgrave Project
JORC 2012 TABLE 1
Section 1 Sampling Techniques and Data
Criteria
Explanation
Commentary
Sampling techniques
Nature and quality of sampling (eg cut
Drilling is undertaken on a priority basis with
channels, random chips, or specific
drill type and hole spacing influenced by
specialised industry standard measurement
geological, topographical and physical factors.
tools appropriate to the minerals under
Sampling is undertaken using standard
investigation, such as down hole gamma
industry practices.
sondes, or handheld XRF instruments, etc).
These examples should not be taken as
limiting the broad meaning of sampling.
Surface geochemical sampling is undertaken
following standard industry practice using
stainless steel or nylon mesh sieves.
Include reference to measures taken to ensure
Drill hole co-ordinates are in UTM grid
sample representivity and the appropriate
(GDA94 Z52) and have been measured by
calibration of any measurement tools or
hand-held GPS with an accuracy of ±4 metres.
systems used.
Aspects of the determination of mineralisation
Diamond drilling is used to obtain samples
that are Material to the Public Report. In
varying in length from 0.2 to 2m.
cases where ‘industry standard’ work has
been done this would be relatively simple (eg
‘reverse circulation drilling was used to obtain
Reverse circulation (RC) drilling was used to
obtain 1m samples.
1m samples from which 3kg was pulverised
All samples are chips and are homogenously
to produce a 30g charge for fire assay’).
split using a cyclone splitter and are analysed
In other cases more explanation may be
as 5m composites or individual 1m samples.
required, such as where there is coarse gold
Individual 1m samples were analysed where
that has inherent sampling problems. Unusual
elevated base metals or favourable alteration
commodities or mineralisation types (eg
was identified.
submarine nodules) may warrant disclosure of
detailed information.
Individual samples weigh less than 3kg to
ensure total preparation at the laboratory
pulverization stage.
The sample size is deemed appropriate for the
grain size of the material being sampled.
Vacuum drilling is used as a geochemical
sampling process to enable metal detection
and the interpretation of basement lithology
in areas of alluvial, colluvial and aeolian cover.
Individual 1.8m samples are only collected
from the cover-insitu regolith contact and end
of hole.
Drilling techniques
Drill type (eg core, reverse circulation, open-
A combination of RC and diamond drilling is
hole hammer, rotary air blast, auger, Bangka,
undertaken. Diamond core is a combination
sonic, etc) and details (eg core diameter, triple
of NQ2 and HQ. Drill core is orientated
or standard tube, depth of diamond tails,
using a down hole spear and structural
face-sampling bit or other type, whether core
measurements recorded in “GeoCalculator”
is oriented and if so, by what method, etc).
software program.
30 Musgrave Minerals Ltd
Musgrave Minerals Ltd
JORC 2012 Table 1
Criteria
Drill sample recovery
Explanation
Commentary
Method of recording and assessing core and
Diamond core recoveries are logged and
chip sample recoveries and results assessed.
recorded in the database. No significant core
loss issues were identified.
Total vacuum and RC sample weights are
monitored but not individually recorded in
reconnaissance drilling and as such sample
recovery is not accurately measured.
Measures taken to maximise sample recovery
Diamond core is reconstructed into
and ensure representative nature of the
continuous intervals on angle iron racks for
samples.
orientation and reconciliation against core
block markers. Rod and meter counts are
routinely carried out by the driller.
RC samples are split using a cyclone or riffle
splitter to ensure representative sampling.
Composite samples are combined using a
spear (tube) sampler.
Vacuum samples are obtained using a tube
sampler.
Whether a relationship exists between sample
No bias has been observed between sample
recovery and grade and whether sample bias
recovery and grade.
may have occurred due to preferential loss/
gain of fine/coarse material.
Logging
Whether core and chip samples have been
Geotechnical logging was carried out on
geologically and geotechnically logged to a
diamond core for recovery and RQD. All
level of detail to support appropriate Mineral
geological, structural and alteration related
Resource estimation, mining studies and
observations are stored in the database for
metallurgical studies.
both RC and diamond core.
Whether logging is qualitative or quantitative
Logging of lithology, structure, alteration,
in nature. Core (or costean, channel, etc)
mineralisation, colour and other features
photography.
of core, RC chips and vacuum samples is
undertaken on a routine basis. Both wet
and dry photography of diamond core is
undertaken on a tray by tray basis.
The total length and percentage of the
All drill holes are logged in full.
relevant intersections logged.
Sub-sampling techniques and sample
If core, whether cut or sawn and whether
Diamond core is cut and sampled on
preparation
quarter, half or all core taken.
geological intervals. A diamond core saw was
If non-core, whether riffled, tube sampled,
RC samples are cyclone split at 1m intervals
rotary split, etc and whether sampled wet or
and tube sampled as 5m composites. All
used to cut the core and selected half core
intervals were submitted for analysis.
dry.
measures are taken to maintain a dry sample
although some samples are wet when
significant groundwater is intersected.
Vacuum samples are collected at selected
geochemical zones within the hole and
constitute 1.8m intervals sampled with a tube
sampler.
The 1.8m basement interface sample was
analysed in all holes where it was intersected.
Only selected samples were analysed within
drill holes from geological logging.
JORC 2012 Table 1
31 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
31
Criteria
Explanation
Commentary
Sub-sampling techniques and sample
For all sample types, the nature, quality and
Sample preparation and base metal and
preparation (continued)
appropriateness of the sample preparation
precious metal analysis is undertaken by
technique.
Intertek Genalysis, in Wingfield, South
Australia.
Sample preparation by dry pulverisation to
90% passing 75 micron.
Quality control procedures adopted for
Field QC procedures involve the use of
all sub-sampling stages to maximise
certified reference standards, duplicates and
representivity of samples.
blanks at appropriate intervals.
Measures taken to ensure that the sampling is
Sampling was carried out using MGV
representative of the in situ material collected,
protocols and QAQC procedures as per
including for instance results for field
industry best practice. Duplicate samples are
duplicate/second-half sampling.
routinely checked against originals.
Whether sample sizes are appropriate to the
Sample sizes are considered appropriate for
grain size of the material being sampled.
the commodities and elements explored and
analysed for.
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the
Drill sample and soil geochemical analysis
assaying and laboratory procedures used and
is undertaken by Intertek Genalysis, in
whether the technique is considered partial
Wingfield, South Australia, multi element
or total.
analysis by four acid total digest (hydrochloric,
nitric, perchloric and hydrofluoric acid) and
ICP-OES and ICP-MS to acceptable detection
limits and Au by FA25/MS.
Analysis for a total of 37 elements is recorded.
For geophysical tools, spectrometers,
No geophysical tools were used to estimate
handheld XRF instruments, etc, the
mineral or element percentages. A portable
parameters used in determining the analysis
XRF, Niton XL3t 950 GOLD+ was used to
including instrument make and model,
assist with sample selection intervals for
reading times, calibrations factors applied and
laboratory analysis.
their derivation, etc.
Nature of quality control procedures adopted
In addition to MGV standards, duplicates
(eg standards, blanks, duplicates, external
and blanks, Genalysis incorporate laboratory
laboratory checks) and whether acceptable
QAQC including standards, blanks and
levels of accuracy (ie lack of bias) and
repeats as a standard procedure. Certified
precision have been established.
reference materials that are relevant to the
type and style of mineralisation targeted are
inserted at regular intervals.
Verification of sampling and assaying
The verification of significant intersections by
At least two company representatives verify
either independent or alternative company
significant intersections including, either the
personnel.
Managing Director, Exploration Manager,
Principal Geologist or Project Geologist.
The use of twinned holes.
No twin holes have yet been drilled by MGV.
Documentation of primary data, data entry
Primary data is collected using a standard set
procedures, data verification, data storage
of Excel templates on a Toughbook laptop
(physical and electronic) protocols.
computer using lookup codes. Geological
sample logging was undertaken on one metre
intervals (RC) and 1.8m intervals (vacuum)
with colour, structure, alteration and lithology
recorded for each interval. Data is verified
before loading to a CSA Global database.
Geological logging of all diamond core was
undertaken.
Discuss any adjustment to assay data.
No adjustments or calibrations were made to
any assay data reported by MGV.
32 Musgrave Minerals Ltd
Musgrave Minerals Ltd
JORC 2012 Table 1
Criteria
Explanation
Commentary
Location of data points
Accuracy and quality of surveys used to locate
Drill hole co-ordinates and surface
drill holes (collar and down-hole surveys),
geochemical sample locations are in UTM grid
trenches, mine workings and other locations
(GDA94 Z52) and have been measured by
used in Mineral Resource estimation.
hand-held GPS with an accuracy of ±4 metres.
Down hole surveys were undertaken for all RC
and diamond drill holes utilised a single shot
camera recording at intervals varying between
12 and 30m.
No down hole surveys where undertaken on
vacuum drill holes. All vacuum drill holes are
vertical.
Specification of the grid system used.
Drill hole co-ordinates are in UTM grid
(GDA94 Z52)
Quality and adequacy of topographic control.
Drill hole RL’s are approximate using hand
held GPS.
Data spacing and distribution
Data spacing for reporting of Exploration
Variable drill hole spacings were used to
Results.
adequately test targets (RC & diamond
drilling) and to adequately cover target areas
with vacuum drilling.
Soil samples were collected on variable grid
spacings.
Whether the data spacing and distribution is
The mineralisation has not yet been
sufficient to establish the degree of geological
demonstrated to have sufficient continuity to
and grade continuity appropriate for the
support the definition of Mineral Resource
Mineral Resource and Ore Reserve estimation
and Reserves under the classification applied
procedure(s) and classifications applied.
under the 2012 JORC Code.
Whether sample compositing has been
In RC drill holes composite samples on 5m
applied.
intervals were undertaken outside visually
mineralised zones to determine background
responses.
No compositing of samples was undertaken
on diamond or vacuum drill holes.
Orientation of data in relation to geological
Whether the orientation of sampling achieves
The precise dip and strike of the
structure
unbiased sampling of possible structures and
mineralisation is not yet known and it is
the extent to which this is known, considering
unclear at this stage whether any sampling
the deposit type.
has a set bias.
If the relationship between the drilling
No orientation based sampling bias is known
orientation and the orientation of key
at this time.
mineralised structures is considered to have
introduced a sampling bias, this should be
assessed and reported if material.
Sample security
The measures taken to ensure sample security. Chain of custody is managed by MGV.
Samples are stored on site and transported
to Intertek Genalysis in Wingfield, South
Australia by a licenced reputable transport
company. When at Genalysis samples are
stored in a locked yard before processing and
then tracked through preparation and analysis
using the Lab Track system.
Audits or reviews
The results of any audits or reviews of
No external audits or reviews of sampling
sampling techniques and data.
techniques and data have been undertaken.
JORC 2012 Table 1
33 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
33
Section 2 Reporting of Exploration Results
Criteria
Explanation
Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and
All drilling has been within wholly owned
ownership including agreements or material
MGV tenements EL5173 and EL5175 within
issues with third parties such as joint ventures,
the Musgrave Project area.
partnerships, overriding royalties, native
title interests, historical sites, wilderness or
national park and environmental settings.
The tenements are APY aboriginal freehold
lands.
All surface geochemical sampling was within
Musgrave Minerals tenure.
The security of the tenure held at the time of
The tenements are in good standing and no
reporting along with any known impediments
known impediments exist.
to obtaining a licence to operate in the area.
Exploration done by other parties
Acknowledgment and appraisal of exploration
No historical drilling has been undertaken by
by other parties.
any third party that is relevant to the current
targets.
Geology
Deposit type, geological setting and style of
Musgrave is exploring for multi commodity
mineralisation.
style deposits consistent with low MgO
magmatic Ni-Cu systems.
Drill hole Information
A summary of all information material to
Refer to appendix 2 in the body of this report.
the understanding of the exploration results
including a tabulation of the following
information for all Material drill holes:
• easting and northing of the drill hole collar
• elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
• dip and azimuth of the hole
• down hole length and interception depth
• hole length.
Data aggregation methods
In reporting Exploration Results, weighting
Refer to notes below appendix 2 in the body
averaging techniques, maximum and/or
of this report.
minimum grade truncations (eg cutting of
high grades) and cut-off grades are usually
Material and should be stated.
Where aggregate intercepts incorporate
Refer to notes below appendix 2 in the body
short lengths of high grade results and
of this report.
longer lengths of low grade results, the
procedure used for such aggregation should
be stated and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of
No metal equivalent values are currently used
metal equivalent values should be clearly
for reporting of exploration results.
stated.
34 Musgrave Minerals Ltd
Musgrave Minerals Ltd
JORC 2012 Table 1
Criteria
Explanation
Commentary
Relationship between mineralisation widths
These relationships are particularly important
An accurate dip and strike and the controls
and intercept lengths
in the reporting of Exploration Results.
on mineralisation are yet to be determined
and the true width of the intercepts is not yet
known.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (eg ‘down hole
length, true width not known’).
Diagrams
Appropriate maps and sections (with scales)
Refer to figures 1, 6, 7, 8, 9 and 10 and
and tabulations of intercepts should be
Appendix 2 in the body of this report.
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting
Where comprehensive reporting of all
All RC and diamond drill results are reported.
Exploration Results is not practicable,
All vacuum drill results are shown on the
representative reporting of both low and high
gridded geochemical image in figure 7 of this
grades and/or widths should be practiced
report.
to avoid misleading reporting of Exploration
Results.
Other substantive exploration data
Other exploration data, if meaningful and
All material results from geochemical and
material, should be reported including (but
geophysical surveys related to these prospects
not limited to): geological observations;
have previously been reported.
geophysical survey results; geochemical survey
results; bulk samples – size and method of
treatment; metallurgical test results; bulk
density, groundwater, geotechnical and
rock characteristics; potential deleterious or
contaminating substances.
Analysis for a total of 37 elements is
undertaken including possible deleterious
elements such as arsenic. Anomalous results
are reported.
Further work
The nature and scale of planned further
A range of exploration techniques are being
work (eg tests for lateral extensions or depth
considered to progress exploration including
extensions or large-scale step-out drilling).
additional drilling.
Diagrams clearly highlighting the areas of
Refer to figures 7, 8, 9 and 10 in the body of
possible extensions, including the main
this report.
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
JORC 2012 Table 1
35 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
35
Directors’ Report
He is a Member of the Australian Institute of Mining and
Metallurgy, and is a Professional Geoscientist of Ontario,
Canada. Mr Ascough is a member of the Company’s audit
Your directors present their report on Musgrave Minerals Ltd
and its subsidiary (the Group) for the financial year ended 30
committee.
June 2013.
Directors
The names of the Directors in office at any time during, or
since the end of, the year are:
Graham Ascough, Non-Executive Chairman
Robert Waugh, Managing Director
Kelly Ross, Non-Executive Director
John Percival, Non-Executive Director
Directors have been in office since the start of the financial
year to the date of this report.
Names, qualifications, experience and special
responsibilities
Mr Graham Ascough
BSc, PGeo, MAusIMM (Non-Executive Chairman), Director
since 26 May 2010
Graham Ascough is a senior resources executive with more
than 24 years of industry experience evaluating mineral
projects and resources in Australia and overseas. He has had
broad industry involvement ranging from playing a leading role
in setting the strategic direction for significant country-wide
exploration programs to working directly with mining and
exploration companies.
Mr Ascough is a geophysicist by training and was the
Managing Director of ASX listed Mithril Resources
Limited from October 2006 until June 2012. Prior to joining
Mithril in 2006, Mr Ascough was the Australian
Manager of Nickel and PGM Exploration at the major
Canadian resources house, Falconbridge Limited
(acquired by Xstrata Plc in 2006).
Other directorships:
Mithril Resources Ltd (Appointed 9 October 2006)
Aguia Resources Limited (Appointed 19 October 2010)
Phoenix Copper Limited (Appointed 10 December 2012)
AO Energy Limited (Appointed 31 July 2013)
Mr Robert Waugh
MSc, BSc, FAusIMM, MAIG (Managing Director), Director since
6 March 2011
Robert Waugh has over 24 years of experience in the resources
sector including more than eight years in the Musgrave region.
Mr Waugh was a critical member of the WMC Resources
Limited exploration team that discovered the Nebo-Babel
nickel/copper/PGM deposit at West Musgrave in 2000. He
was subsequently Project Manager of the team that defined
the initial resource at Nebo-Babel. Mr Waugh has held senior
exploration management roles at WMC Resources (WMC),
BHP Billiton Exploration Limited (BHP), Fusion Resources
Limited, Cameco Australia Limited and Raisama Limited. Mr
Waugh spent over 19 years with WMC and subsequently BHP,
following the takeover of WMC in 2005. He has extensive
exploration and mining experience in a range of commodities
including nickel, copper, gold, uranium and PGMs. Mr Waugh
holds a Bachelor of Science degree majoring in geology from
the University of Western Australia and a Master of Science
in Mineral Economics from Curtin University and the Western
Australian School of Mines. Mr Waugh is a Fellow of the
Australasian Institute of Mining and Metallurgy and a Member
of the Australian Institute of Geoscientists. Mr Waugh is a
member of the Company’s audit committee.
Other directorships:
None
36 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Directors’ Report
Mrs Kelly Ross
Ltd (resigned 14 December 2012). Additionally he is Company
BBus, CPA, ACSA (Non-Executive Director), Director since 26
Secretary to Minotaur Exploration Ltd, Mithril Resources Ltd,
May 2010
Petratherm Ltd and Toro Energy Limited. He holds other public
company secretarial positions and directorships with private
Kelly Ross is a qualified accountant holding a Bachelor of
companies and provides corporate advisory services to a wide
Business (Accounting) and has the designation CPA from the
range of organisations.
Australian Society of Certified Practicing Accountants. Mrs
Ross is a Chartered Secretary with over 25 years’ experience
in accounting and administration in the mining industry and
was the Company Secretary of Independence Group NL for 10
Operating Results
years. Mrs Ross is currently a Non-Executive Director of ASX
The loss of the Group after providing for income tax amounted
listed Independence Group NL. Mrs Ross is the chair of the
to $585,809 (2012: $276,182).
Company’s audit committee.
Other directorships:
Independence Group NL (Appointed 16 September 2002)
Interests in the Shares and
Options of the Company and
Related Bodies Corporate
Mr John Percival
As at the date of this report, the interests of the directors in
Non-Executive Director, Director since 26 May 2010
the shares and options of Musgrave Minerals Ltd were:
John Percival has been involved in investment and merchant
banking for over 25 years including 15 years as Investment
Manager of Barclays Bank New Zealand Limited. In addition
he has extensive experience in stockbroking, corporate finance
and investment management. Mr Percival is currently Executive
Director - Operations of ASX listed Goldsearch Limited. Mr
Percival is a member of the Company’s audit committee.
Other directorships:
Goldsearch Limited (Appointed 11 October 1995)
Company Secretary
Mr Donald Stephens
Number of
Ordinary Shares
Number of
Options over
Ordinary Shares
200,000
80,000
200,000
50,000
750,000
5,000,000
500,000
500,000
Graham Ascough
Robert Waugh
John Percival
Kelly Ross
Dividends Paid or Recommended
No dividends were paid or declared since the start of the
financial year. No recommendation for payment of dividends
has been made.
BAcc, FCA, Company Secretary since 26 May 2010
Principal Acitivites
Mr Stephens is a Chartered Accountant and corporate adviser
with over 25 years experience in the accounting industry,
The principal activities of the Group during the financial year
were:
including 14 years as a partner of HLB Mann Judd (SA), a
•
to carry out exploration of mineral tenements both on a
firm of Chartered Accountants. He is a director of Mithril
joint venture basis and by the Group in its own right;
Resources Ltd, Papyrus Australia Ltd, Lawson Gold Ltd, AO
Energy Limited and was formerly a director of TW Holdings
•
to continue to seek extensions of areas held and to seek
out new areas with mineral potential; and
Directors’ Report
37 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
37
•
to evaluate results achieved through surface sampling,
geophysical surveys and drilling activities carried out during
Environmental Regulations
the year.
Risk Management
The Company takes a proactive approach to risk management.
The Board is responsible for ensuring that risks, and also
opportunities, are identified on a timely basis and that the
Company’s objectives and activities are aligned with the risks
and opportunities identified by the Board.
The Company believes that it is crucial for all Board members
to be a part of this process, and as such the Board has not
established a separate risk management committee.
The Board has a number of mechanisms in place to ensure
that management’s objectives and activities are aligned with
the risks identified by the Board. These include the following:
• Board approval of a strategic plan, which is designed to
meet stakeholders’ needs and manage business risk.
The Group is aware of its responsibility to impact as little
as possible on the environment, and where there is any
disturbance, to rehabilitate sites. During the year under review
the work carried out was in South Australia and the entity
followed procedures and pursued objectives in line with
guidelines published by the South Australian Government.
These guidelines encompass not only the impact on the land
and vegetation but cover such subjects as pollution, approvals
from relevant parties including land owners and land users,
heritage, health and safety and proper restoration practices.
The Group supports this approach and is confident that
it properly monitors and adheres to these objectives, and
any local conditions applicable, both in South Australia and
elsewhere.
The Group is committed to minimising environmental impacts
during all phases of exploration, development and production
through a best practice environmental approach. The Group
shares responsibility for protecting the environment for the
present and the future. It believes that carefully managed
•
Implementation of Board approved operating plans and
exploration programs should have little or no long-lasting
budgets and Board monitoring of progress against these
impact on the environment and the Group has formed a
budgets, including the establishment and monitoring
best practice policy for the management of its exploration
of performance indicators of both a financial and non-
programs. The Group properly monitors and adheres to this
financial nature.
Significant Changes in the State
of Affairs
No matters or circumstances have arisen since the end of the
financial year which significantly affected or may significantly
approach and there were no environmental incidents to
report for the year under review. Furthermore, the Group
is in compliance with the state and/or commonwealth
environmental laws for the jurisdictions in which it operates.
Occupational Health, Safety and
Welfare
affect the operations of the Group, the results of those
In running its business, Musgrave Minerals Ltd aims to protect
operations, or the state of affairs of the Group in future
the health, safety and welfare of employees, contractors and
financial years.
Future Developments
Disclosure of information regarding likely developments in
the operations of the Group in future financial years and
the expected results of those operations is likely to result in
guests. In the reporting year the Company experienced one
medical aid incident and no lost time injuries. The Company
reviews its Health and Safety policy at regular intervals to
ensure a high standard of Health and Safety.
Subsequent Events
unreasonable prejudice to the Company. Accordingly, this
There were no significant events that occurred after balance
information has not been disclosed in this report.
date.
38 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Directors’ Report
Unissued Shares
At the date of this report, the following options to acquire ordinary shares in the Company were on issue:
Issue Date
Expiry Date
Exercise Price
Balance at 1 July
2012
Net Issued/
(Exercised or
expired)
Balance at 30 June
2013
21/08/2010
17/02/2011
17/02/2011
09/05/2011
24/01/2012
06/03/2013
25/03/2013
20/08/2015
17/02/2016
17/02/2016
08/05/2016
23/01/2017
05/03/2018
24/03/2018
$0.25
$0.36
$0.50
$0.36
$0.25
$0.25
$0.25
7,750,000
4,750,000
2,500,000
500,000
525,000
-
-
16,025,000
-
-
-
-
(150,000)
500,000
75,000
425,000
7,750,000
4,750,000
2,500,000
500,000
375,000
500,000
75,000
16,450,000
Share Options
Shares issued as a result of exercise of options
No shares were issued during the year as a result of the
exercise of options.
New options issued
During the financial year a total of 575,000 unlisted options
were issued to employees as an incentive. The options are
officers of their position or of information to gain advantage
for themselves or someone else or to cause detriment to the
Group.
Remuneration Report - Audited
This report outlines the remuneration arrangements in place
for Directors and Executives of Musgrave Minerals Ltd.
exercisable at $0.25 and expire 24 March 2018 (75,000) and
5 March 2018 (500,000). Refer to note 13 to the financial
Remuneration philosophy
The Board is responsible for determining remuneration policies
statements for further information.
Indemnification and Insurance of
Directors and Officers
To the extent permitted by law, the Group has indemnified
(fully insured) each Director and the Company Secretary of
the Group for a premium of $13,236. The liabilities insured
include costs and expenses that may be incurred in defending
civil or criminal proceedings (that may be brought) against the
officers in their capacity as officers of the Group or a related
body, and any other payments arising from liabilities incurred
by the officers in connection with such proceedings, other
than where such liabilities arise out of conduct involving a
wilful breach of duty by the officers or the improper use by the
applicable to Directors and senior executives of the Group.
The broad policy is to ensure that remuneration properly
reflects the individuals’ duties and responsibilities and that
remuneration is competitive in attracting, retaining and
motivating people with appropriate skills and experience. At
the time of determining remuneration consideration is given
by the Board to the Group’s financial performance.
Employment contracts
The employment conditions of the Managing Director, Mr
Robert Waugh, are formalised in an employment contract.
Under this contract, the Company agrees to employ Mr
Waugh as Managing Director of the Company for a period of
three years commencing on 7 March 2011 with his current
gross annual salary, inclusive of 9% superannuation guarantee,
Directors’ Report
39 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
39
being $290,000. Either party may terminate the employment
component. Termination payments are generally not payable
contract without cause by providing six (6) months written
on resignation or dismissal for serious misconduct. In the
notice or by making payment in lieu of notice (in the case
instance of serious misconduct the Company can terminate
of the Company), based on the annual salary component.
employment at any time.
Termination payments are generally not payable on resignation
or dismissal for serious misconduct. In the instance of serious
The employment conditions of the Principal Geologist, Dr
misconduct the Company can terminate employment at any
Justin Gum, are formalised in a contract of employment.
time.
Dr Gum commenced employment on 1 October 2010 and
his current gross annual salary, inclusive of superannuation
The employment conditions of the Exploration Manager, Mr
guarantee, is $171,675. Either party may terminate the
Ian Warland, are formalised in a contract of employment.
employment contract without cause by providing one (1)
Mr Warland commenced employment on 6 March 2013 and
month’s written notice or making payment in lieu of notice
his current gross annual salary, inclusive of superannuation
(in the case of the Company) or forfeiture of one month’s
guarantee, is $218,000. Either party may terminate the
salary (in the case of Dr Gum), based on the annual salary
employment contract without cause by providing one (1)
component. Termination payments are generally not payable
month’s written notice or making payment in lieu of notice
on resignation or dismissal for serious misconduct. In the
(in the case of the Company) or forfeiture of one month’s
instance of serious misconduct the Company can terminate
salary (in the case of Mr Warland), based on the annual salary
employment at any time.
Table 1: Director remuneration for the year ended 30 June 2013 and 30 June 2012
Short-term employee
benefits
Post employment
benefits
Share based
payments
Salary & Fees
Superannuation
$
$
Options
Total
$
Graham Ascough **
2013
2012
Robert Waugh **
2013
2012
Kelly Ross **
2013
2012
John Percival **
2013
2012
Total
2013
2012
65,000
65,100
266,055
266,055
45,000
45,000
46,012
45,000
422,067
421,155
-
-
23,945
23,945
4,050
4,050
3,038
4,050
31,033
32,045
-
-
-
-
-
-
-
-
-
-
65,000
65,100
290,000
290,000
49,050
49,050
49,050
49,050
453,100
453,200
40 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Directors’ Report
Table 2: Remuneration of key management personnel for the year ended 30 June 2013 and
30 June 2012
Short-term employee
benefits
Post employment
benefits
Share based
payments
Salary & Fees
Superannuation
$
$
Options
$
Total
$
Justin Gum
2013
2012
Ian Warland
2013
2012
Donald Stephens * & **
2013
2012
Total
2013
2012
156,875
139,000
14,119
24,500
-
-
170,994
163,500
51,571
4,641
21,550
77,762
-
-
-
-
-
-
-
-
-
-
-
-
208,446
139,000
18,760
24,500
21,550
-
248,756
163,500
* HLB Mann Judd (SA) Pty Ltd has received professional fees for accounting, taxation and secretarial services provided during the year amounting to $150,541
including GST (2012: $131,671). Donald Stephens, the Company Secretary, is a consultant with HLB Mann Judd (SA) Pty Ltd.
** Graham Ascough and Donald Stephens are Non-Executive Directors of Mithril Resources Ltd which is the beneficial holder of 7.67% of the issued capital of
Musgrave Minerals Ltd. John Percival is an Executive Director of Goldsearch Ltd which is the beneficial holder of 7.17% of the issued capital of Musgrave Minerals
Ltd. Kelly Ross is a Non-Executive Director of Independence Group NL which is the beneficial holder of 7.46% of the issued capital of Musgrave Minerals Ltd.
Use of Remuneration Consultants
Directors’ Meetings
During the financial year, there were no remuneration
The number of meetings of Directors (including meetings of
recommendations made in relation to key management
committees of Directors) held during the year and the number
personnel for the Company by any remuneration consultants.
of meetings attended by each Director were as follows:
Voting and Comments Made
at the Company’s 201 Annual
General Meeting
Musgrave Minerals Ltd received more than 98% of “yes”
votes on its remuneration report for the 2012 financial year by
proxy. The Company did not receive any specific feedback at
the AGM on its remuneration report.
Directors’ Meetings
Audit Committee
Director
Eligible
Attended
Eligible
Attended
Graham
Ascough
Robert
Waugh
John
Percival
Kelly Ross
7
7
7
7
7
7
7
7
2
2
2
2
2
2
2
2
Directors’ Report
41 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
41
Members acting on the audit committee are:
Kelly Ross (Chairperson)
Graham Ascough
Robert Waugh
John Percival
Proceedings on Behalf of the
Company
No person has applied for leave of Court to bring proceedings
on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of
those proceedings.
Auditor Independence and
Non-Audit Services
Grant Thornton Audit Pty Ltd, in its capacity as auditor for
Musgrave Minerals Ltd, has not provided any non-audit
services throughout the reporting period. The auditor’s
independence declaration for the year ended 30 June 2013 as
required under section 307C of the Corporations Act 2001 has
been received and can be found on page 12.
Signed in accordance with a resolution of the Directors.
Mr Graham Ascough
Chairman
25 September 2013
42 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Directors’ Report
Corporate Governance
Statement
Introduction
The Board of Directors has adopted a corporate framework
for the Company which is underpinned by the ASX Corporate
Governance Council’s Corporate Governance Principles and
Recommendations with 2010 Amendments (2nd Edition)
(Recommendations) applicable to ASX-listed entities.
Director and senior executives, including the Company
Secretary, against the objectives and performance
indicators established by the Board.
• Overseeing the establishment and maintenance of
adequate internal controls and effective monitoring
systems.
• Overseeing the implementation and management of
effective safety and environmental performance systems.
• Ensuring all major business risks are identified and
effectively managed.
• Ensuring that the Group meets its legal and statutory
This Section addresses each of the Corporate Governance
obligations.
Principles and, where the Company has not followed a
Recommendation, this is identified with the reasons for not
following the Recommendation. Those charters and policies
that form the basis of the corporate governance practices of
• Overseeing of the Company, including its control and
accountability systems.
The functions delegated to senior executives include:
the Company are located on the Company’s website.
•
Implementing the Company’s vision, values and business
Principle 1: Lay solid foundations
for management and oversight
Recommendation 1.1 - Functions reserved to
the Board and delegated to senior executives
The Board is accountable to Shareholders for the performance
plan.
• Managing the business to agreed capital and operating
expenditure budgets.
•
Identifying and exploring opportunities to build and sustain
the business.
• Allocating resources to achieve the desired business
outcomes.
of the Company and has overall responsibility for its
• Sharing knowledge and experience to enhance success.
operations. Day to day management of the Company’s affairs,
and the implementation of the corporate strategy and policy
initiatives, is formerly delegated by the Board to the Managing
Director.
• Facilitating and monitoring the potential and career
development of the Company’s people resources.
•
Identifying and mitigating areas of risk within the business.
• Managing effectively the internal and external stakeholder
The Company has established functions reserved to the Board
relationships and engagement strategies.
and functions delegated to senior executives.
The functions reserved to the Board include:
• Approving the strategic direction and related objectives of
the Company and monitoring management performance
in the achievement of these objectives;
• Adopting budgets and monitoring the financial
performance of the Company.
• Reviewing annually the performance of the Managing
• Determining the senior executives’ position on strategic
and operational issues.
For the purposes of the proper performance of their duties,
the Directors are entitled to seek independent professional
advice at the Company’s expense, unless the Board determines
otherwise. The Board schedules meetings on a regular basis
and other meetings as and when required.
Corporate Governance Statement
43 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
43
The Company has not formally established the functions
transactions or potential transactions do not receive Board
reserved to the Board and those delegated to senior executives
papers related to those transactions or potential transactions,
in accordance with recommendations 1.1 and 1.3 of the
do not participate in any part of a Directors’ meeting which
ASX Corporate Governance Council. Given the size of the
considers those transactions or potential transactions, are not
Company, the Board has not considered it necessary to
involved in the decision making process in respect of those
formulate a Board charter.
transactions or potential transactions, and are asked not to
Recommendation 1.2 - Performance
evaluation of senior executives
The Managing Director and senior management participate
in annual performance reviews. The performance of staff is
measured against the objectives and performance indicators
discuss those transactions or potential transactions with other
Directors.
Recommendation 2.1 - A majority of the
Board should be independent Directors
The Board is conscious of the need for independence and
established by the Board. A performance evaluation for
ensures that where a conflict of interest may arise, the relevant
senior executives will take place in the upcoming reporting
Director(s) leave the meeting to ensure a full and frank
period in accordance with the Company’s documented
discussion of the matter(s) under consideration by the rest
process. The performance of senior executives is reviewed by
of the Board. Those Directors who have interests in specific
comparing performance against agreed measures, examining
transactions or potential transactions do not receive Board
the effectiveness and results of their contribution and
papers related to those transactions or potential transactions,
identifying areas for potential improvement. In accordance
do not participate in any part of a Directors’ meeting which
with recommendations 1.2 and 1.3 of the ASX Corporate
considers those transactions or potential transactions, are not
Governance Council the Company has not disclosed a
involved in the decision making process in respect of those
description of the performance evaluation process in addition
transactions or potential transactions, and are asked not to
to the disclosure above.
Principle 2 - Structure the Board to add value
At the date of this statement the Board consists of the
following directors
Mr Graham Ascough, Non-Executive Chair
Mr Robert Waugh, Managing Director
Mrs Kelly Ross, Non-Executive Director
Mr John Percival, Non-Executive Director
discuss those transactions or potential transactions with other
Directors. Each Director is required by the Company to declare
on an annual basis the details of any financial or other relevant
interests that they may have in the Company.
The Board has determined that its three non-executive
Directors are not independent as defined under
Recommendation 2.1. The Company is therefore at variance
with Recommendation 2.1 in that a majority of Directors are
not independent.
The Board considers this to be an appropriate composition
given the size and development of the Group at the present
The Board considers its current structure to be an appropriate
time. The names of directors including details of their
composition of the required skills and experience, given
qualification and experience are set out in the Directors’ Report
the experience of the individual Directors and the size and
of this Financial Report.
Independence
development of the Company at the present time. Each
individual member of the Board is satisfied that whilst the
Company may not comply with Recommendation 2.1, all
The Board is conscious of the need for independence and
Directors bring an independent judgment to bear on Board
ensures that where a conflict of interest may arise, the relevant
decisions.
Director(s) leave the meeting to ensure a full and frank
discussion of the matter(s) under consideration by the rest
of the Board. Those Directors who have interests in specific
44 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Corporate Governance Statement
Recommendation 2.2 - The chair should be
an independent Director
The Company’s Chairman, Mr Graham Ascough, is not an
independent Director as defined under Recommendation 2.1.
Recommendation 2.3 - The roles of chair and
Managing Director should be separated
The roles of the Chairman and the Managing Director are not
Principle 3 - Promote ethical and
responsible decision making
Securities Trading Policy
The Company has established a policy concerning trading in
the Company’s shares by the Company’s officers, employees
and contractors and consultants to the Company while
engaged in work for the Company (Representatives).
being exercised by the same individual. The Company has
This policy provides that it is the responsibility of each
therefore complied with Recommendation 2.3.
Representative to ensure they do not breach the insider trading
Recommendation 2.4 - Nomination
Committee
The Board has not established a Nomination and
Remuneration Committee in accordance with recommendation
2.4 of the Corporate Governance Council. The Board takes
ultimate responsibility for these matters and continues to
monitor the composition of the Board and the roles and
responsibilities of its members. Accordingly, the Company does
not have a Nomination and Remuneration Committee Charter
in accordance with recommendations 2.4 and 2.6 of the ASX
Corporate Governance Council.
Recommendation 2.5 - Process for evaluating
the performance of the Board
The Board continues to review performance against
prohibition in the Corporations Act. Breaches of the insider
trading prohibition will result in disciplinary action being taken
by the Company.
Representatives must also obtain written consent from the
Chairman (or, in the case of the Chairman, from the Board)
prior to trading in the Company’s securities.
Subject to these restrictions, the policy provides that Directors,
the Company Secretary and employees of, or contractors to,
the Company that have access to the Company’s financial
information or drilling results are permitted to trade in the
Company’s securities throughout the year except during the
following periods:
1. the period between the end of the March, June,
September and December quarters and the release of
appropriate measures and identify ways to improve
the Company’s quarterly report to ASX for so long as the
performance. The Board has not formally disclosed the review
Company is required by the Listing Rules to lodge quarterly
process in accordance with recommendations 2.5 and 2.6
reports; and
of the ASX Corporate Governance Council. The Board takes
ultimate responsibility for these matters and does not consider
the disclosure of the performance evaluation necessary at this
2. 24 hours after the following events:
(a) Any major announcements;
stage.
Recommendation 2.6 - Additional
information concerning the Board and
Directors
The Company has included the disclosures required by
Recommendation 2.6 in this annual report. There are
procedures in place, agreed by the Board, to enable Directors,
in furtherance of their duties, to seek independent professional
advice at the Company’s expense. A performance evaluation
for the board, its committees and directors has not taken place
during the reporting period.
(b) The release of the Company’s quarterly, half yearly and
annual financial results to the ASX; and
(c) The Annual General Meeting and all other General
Meetings.
In exceptional circumstances the Board may waive
the requirements of the Share Trading Policy to allow
Representatives to trade in the shares of the Company,
provided to do so would not be illegal.
Directors must advise the Company Secretary of changes to
their shareholdings in the Company within two (2) business
days of the change.
Corporate Governance Statement
45 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
45
Recommendation 3.1 - Code of Conduct
The Board recognises the need for Directors and employees
to observe the highest standards of behaviour and business
Principle 4 - Safeguard integrity in
financial reporting
ethics when engaging in corporate activity. The Company
The Company has structured financial management to
maintains a reputation for integrity and is highly committed to
independently verify and safeguard the integrity of its financial
demonstrating appropriate corporate practices and decision
reporting. The structure established by the Company includes:
making. The Company’s officers and employees are required
to act in accordance with the law and with the highest ethical
standards. The Board has adopted and disclosed a formal code
of conduct and ethics applying to the Board and all employees
in accordance with recommendations 3.1 and 3.5 of the
Corporate Governance Council.
Recommendation 3.2 and Recommendation
3.3 - Diversity Policy
The ASX Corporate Governance Council has released
amendments dated 30 June 2010 to the 2nd edition
Corporate Governance Principles and Recommendations in
relation to diversity.
For the purpose of the amendments diversity includes, but is
not limited to, gender, age, ethnicity and cultural background.
The Company continues to strive towards achieving objectives
established towards increasing gender diversity.
• Review and consideration of the financial statements by
the Audit Committee.
• A process to ensure the independence and competence of
the Company’s external auditors.
Recommendation 4.1 - Audit Committee
The Company has established an Audit Committee.
Recommendation 4.2 - Structure of the Audit
Committee
The Company’s Audit Committee does not comply with all of
the requirements of Recommendation 4.2. The details are as
follows:
•
the Audit Committee does not consist only of non-
executive Directors; there are three non-executive Directors
and one executive Director;
•
the Audit Committee does not consist of a majority of
independent Directors; and
The Company will assess all staff and Board appointments on
•
the Audit Committee is chaired by Mrs Kelly Ross, who is
their merits with consideration to diversity a driver in decision
not an independent Director.
making. The Company has not yet developed or disclosed a
Although none of the members of the Audit Committee are
formal diversity policy and therefore has not complied with the
independent, the Board has nevertheless determined that
recommendations 3.2 and 3.3 of the Corporate Governance
the composition of the Audit Committee represents the only
Council.
Recommendation 3.4 and 3.5 - Reporting in
Annual Report
At the date of this Annual Report, the Company employs 8
staff members (excluding the Non-Executive Directors and
the Managing Director), of which 2 are female. The Board of
Directors consists of 3 male directors and 1 female director.
The Company has disclosed the information suggested in
Recommendation 3.5 in this Annual Report.
practical mix of Directors that have an appropriate range of
qualifications and expertise and that can understand and
competently deal with current and emerging relevant business
issues.
Recommendation 4.3 - Audit Committee
Charter
The Audit Committee’s primary responsibilities are to:
• oversee the existence and maintenance of internal controls
and accounting systems;
• oversee the management of risk within the Company;
• oversee the financial reporting process;
46 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Corporate Governance Statement
•
review the annual and half-year financial reports and
in relation to continuous disclosure as well as the Company’s
recommend them for approval by the Board;
obligations under the Listing Rules and Corporations Act.
• nominate external auditors;
•
review the performance of the external auditors and
existing audit arrangements; and
The policy also provides procedures for internal notification
and external disclosures, as well as procedures for promoting
understanding of compliance with disclosure requirements.
• ensure compliance with laws, regulations and other
The policy reflects the matters set out in the commentary and
statutory or professional requirements, and the Company’s
guidance for Recommendation 5.1.
governance policies.
The Company has adopted an Audit Committee Charter which
sets out its role, responsibilities and membership requirements
Recommendation 5.2 - Continuous Disclosure
Policy
The disclosures required by Recommendation 5.2 are included
and reflects the matters set out in the commentary and
in this annual report.
guidance for Recommendation 4.3.
Recommendation 4.4 - Additional
Information concerning the Audit Committee
The disclosures required by Recommendation 4.4 are
contained within this annual report.
In accordance with the guide to reporting on Principle 4,
the Company’s Audit Committee Charter is available on the
Company’s website. The Board is responsible for the selection
and appointment of the external auditor and the Company’s
auditor Grant Thornton has complied with the Corporations
Act provisions requiring audit and review partner rotation
every 5 years.
Principle 5 - Make timely and
balanced disclosure
A copy of the Company’s Continuous Disclosure Policy is
available on the Company’s website.
Principle 6 - Respect the rights of
shareholders
The Board strives to ensure that Shareholders are provided
with sufficient information to assess the performance of
the Company and its Directors and to make well-informed
investment decisions.
Recommendation 6.1 - Shareholder
Communications Policy
Information is communicated to Shareholders through:
• annual, half-yearly and quarterly financial and activity
reports;
The Company has a policy that all shareholders and investors
have equal access to the Company’s information. The Board
• annual and other general meetings convened for
Shareholder review and approval of Board proposals;
ensures that all price sensitive information is disclosed to ASX
• continuous disclosure of material changes to ASX; and
in accordance with the continuous disclosure requirements
of the Corporations Act and Listing Rules. The Company
Secretary has primary responsibility for all communications
with ASX and is accountable to the Board through the Chair.
•
the Company’s website where all ASX announcements,
notices and financial reports are published as soon as
possible after release to ASX.
Recommendation 5.1 - ASX Listing Rule
Disclosure Requirements
The Company has established a Continuous Disclosure Policy
which sets out the key obligations of Directors and employees
The auditor is required to attend the annual general meeting
of Shareholders. The Chairman will permit Shareholders to ask
questions about the conduct of the audit and the preparation
and content of the audit report.
Corporate Governance Statement
47 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
47
The Company has adopted a Shareholder Communications
in accordance with recommendations 7.1 and 7.4 of the
Policy for:
Corporate Governance Council.
• promoting effective communication with shareholders; and
• encouraging shareholder participation at annual and other
general meetings.
Recommendation 6.2 - Availability of
Shareholder Communications Policy
The disclosures required by Recommendation 6.2 have been
included in this annual report.
Recommendation 7.2 - Risk Management and
Internal Control System
The Company has developed a risk management framework
which is supported by the Board of Directors and
management.
The policy provides a framework for identifying, assessing,
monitoring and managing risks of the Company.
A copy of the Company’s Shareholder Communications Policy
is available on the Company’s website.
The Board requires management to report on the policy as to
whether those risks are being managed effectively.
Principle 7 - Recognise and
manage risk
Recommendation 7.3 - Statement from the
Managing Director and Company Secretary
The Managing Director and the Company Secretary have
stated in writing to the Board that the Company’s financial
The Board has identified the significant areas of potential
reports present a true and fair view, in all material respects, of
business and legal risk of the Company. In addition the Board
the Company’s financial condition and operational results are
has developed the culture, processes and structures of the
in accordance with relevant accounting standards. Included
Company to encourage a framework of risk management
in this statement is a confirmation that the Company’s risk
which identifies, monitors and manages the material risks
management and internal controls are operating efficiently
facing the organisation.
and effectively.
Recommendation 7.1 - Risk Management
Policies
The identification, monitoring and, where appropriate,
Recommendation 7.4 - Additional
Information concerning Risk Management
The Company has included the disclosures required by
the reduction of significant risk to the Company is the
Recommendation 7.4 in this annual report.
responsibility of the Managing Director and the Board. The
Board has also established the Audit Committee which
The Company has publicly disclosed a risk management policy
addresses the risks of the Company.
outlining the oversight and management of material business
risks in accordance with recommendation 7.1 and 7.4 of the
The Board reviews and monitors the parameters under
Corporate Governance Council.
which such risks will be managed. Management accounts
are prepared and reviewed with the Managing Director
at subsequent Board meetings. Budgets are prepared and
compared against actual results.
Management and the Board monitor the Company’s material
business risks and reports are considered at regular meetings.
The Company has publicly disclosed a risk management policy
for the oversight and management of material business risks
Principle 8 - Remunerate fairly and
responsibly
Recommendation 8.1 - Remuneration
Committee
The Board has not established a Remuneration Committee or
disclosed a Committee Charter on the Company’s website and
48 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Corporate Governance Statement
therefore has not complied with recommendations 8.1 and
8.3 of the Corporate Governance Council. The Board takes
ultimate responsibility for these matters and does not consider
a Remuneration Committee to be appropriate at this stage.
Recommendation 8.2 - Structure of
Remuneration Committee
The Board has not established a Remuneration Committee or
disclosed a Committee Charter on the Company’s website and
therefore has not complied with recommendations 8.2 and
8.3 of the Corporate Governance Council. The Board takes
ultimate responsibility for these matters and does not consider
a Remuneration Committee to be appropriate at this stage.
Recommendation 8.3 - Remuneration of
Executive Directors, Executives and Non-
Executive Directors
The Chairman and the non-executive Directors are entitled to
draw Director’s fees and receive reimbursement of reasonable
expenses for attendance at meetings. The Company is required
to disclose in its annual report details of remuneration to
Directors. The maximum aggregate annual remuneration
which may be paid to non-executive Directors is $250,000 per
annum. This amount cannot be increased without the approval
of the Company’s Shareholders.
Recommendation 8.4 - Additional
Information concerning Remuneration
The Company has included the disclosures required by
Recommendation 8.4 in this annual report.
Corporate Governance Statement
49 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
49
50 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the Year Ended 30 June 2013
Other income
Impairment of exploration and evaluation assets
Employee benefits expense
Depreciation expense
Finance expenses
Other expenses
Loss before income tax expense
Income tax benefit/(expense)
Loss from continuing operations
Loss attributable to members of the parent entity
Other comprehensive income
Total comprehensive income for the year
Earnings per share:
Basic earnings per share
Diluted earnings per share
Note
5 (a)
5 (d)
5 (b)
5 (c)
5 (e)
6
7
7
Consolidated Group
Year ended
30 June 2013
$
Year ended
30 June 2012
$
581,613
926,309
(354,939)
-
(464,272)
(509,790)
(89,049)
(111,405)
(8,271)
(11,134)
(543,517)
(565,632)
(878,435)
(271,652)
292,626
(4,530)
(585,809)
(276,182)
(585,809)
(276,182)
-
-
(585,809)
(276,182)
Cents
Cents
(0.48)
(0.48)
(0.23)
(0.23)
This statement should be read in conjunction with the notes to the financial statements
Statement of Profit and Loss
51 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
51
Consolidated Statement of Financial Position
As at 30 June 2013
Consolidated Group
Note
30 June 2013
30 June 2012
$
$
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Exploration and evaluation assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Short-term borrowings
Short-term provisions
Total Current Liabilities
Non-Current Liabilities
Long-term borrowings
Long-term provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Retained earnings
Total Equity
8
9
10
11
12
14
15
16
15
16
17
18
19
9,565,706
13,570,860
123,681
54,160
133,257
182,029
9,743,547
13,886,146
176,439
17,055,933
17,232,372
26,975,919
251,061
47,293
90,517
388,871
6,174
13,619
19,793
408,664
224,276
13,538,949
13,763,225
27,649,371
313,432
64,587
87,060
465,079
50,854
4,182
55,036
520,115
26,567,255
27,129,256
26,718,899
2,958,083
(3,109,727)
26,567,255
26,718,899
2,944,985
(2,534,628)
27,129,256
This statement should be read in conjunction with the notes to the financial statements
52 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Statement of Financial Position
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2013
Consolidated Group
Note
Issued
Capital
Ordinary
$
Share
Option
Reserve
$
Accumulated
Losses
$
Total
Equity
$
Balance at 1 July 2011
26,729,469
2,907,500
(2,258,446)
27,378,523
Total comprehensive loss for the year
Share based payments
Transaction costs (net of tax)
Balance at 30 June 2012
-
-
(10,570)
-
(276,182)
(276,182)
37,485
-
-
-
37,485
(10,570)
26,718,899
2,944,985
(2,534,628)
27,129,256
Balance at 1 July 2012
26,718,899
2,944,985
(2,534,628)
27,129,256
Total comprehensive loss for the year
Share based payments
Transfer from share option reserve
due to lapse of options under
employee share option plan
18
-
-
-
-
(585,809)
(585,809)
23,808
-
23,808
(10,710)
10,710
-
Balance at 30 June 2013
26,718,899
2,958,083
(3,109,727)
26,567,255
This statement should be read in conjunction with the notes to the financial statements
Statement of Changes in Equity
53 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
53
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2013
Note
Consolidated Group
Year
ended
30 June 2013
$
Year
ended
30 June 2012
$
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Finance costs
Receipt of R&D Tax Concession
Net Cash Used in Operating Activities
8
Cash Flows From Investing Activities
Payments for property, plant and equipment
Payments for exploration activities
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Payment of transaction costs for issue of
shares
Proceeds from borrowings
Repayment of borrowings
Net Cash Provided by/(Used in)
Financing Activities
Net increase/(decrease) in cash and cash
equivalents
Cash at the beginning of the year
Cash at the end of the Year
8
(1,073,892)
(1,069,074)
689,810
(7,991)
292,626
(99,447)
(39,112)
(3,800,309)
(3,839,421)
-
-
(66,286)
(66,286)
(4,005,154)
13,570,860
9,565,706
877,147
(10,564)
-
(202,491)
(152,240)
(3,860,767)
(4,013,007)
(14,012)
65,658
(47,275)
4,371
(4,211,127)
17,781,987
13,570,860
This statement should be read in conjunction with the notes to the financial statements
54 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Statement of Cash Flows
Notes to the Financial
Statements
For the Year Ended 30 June 2013
1. Nature of operations
the preparation of these financial statements are summarised
below.
The financial statements have been prepared using the
measurement bases specified by Australian Accounting
Standards for each type of asset, liability, income and expense.
The measurement bases are more fully described in the
accounting policies below.
Musgrave Minerals Ltd principal activities are to carry out
exploration of mineral tenements, to continue to seek
b. Principle of Consolidation
The consolidated financial statements incorporate the assets,
extensions of areas held and to seek out new areas with
liabilities and results of entities controlled by Musgrave
mineral potential and to evaluate results achieved through
Minerals Ltd at the end of the reporting period. A controlled
surface sampling, geophysical surveys and drilling activities.
entity is any entity over which Musgrave Minerals Ltd has the
2. General information and
statement of compliance
The general purpose financial statements of the Group have
been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards
and other authoritative pronouncements of the Australian
Accounting Standards Board. Compliance with Australian
Accounting Standards results in full compliance with the
International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
Musgrave Minerals Ltd is a for-profit entity for the purpose of
preparing the financial statements.
Musgrave Minerals Ltd is a public company incorporated and
domiciled in Australia and listed on the ASX (ASX Code: MGV).
The financial statements for the year ended 30 June 2013
(including comparatives) were approved and authorised for
issue by the Board of Directors on 25 September 2013.
ability and right to govern the financial and operating policies
so as to obtain benefits from the entity’s activities.
Where controlled entities have entered or left the Group
during the year, the financial performance of those entities
is included only for the period of the year that they were
controlled. A list of controlled entities is contained in note 24
to the financial statements.
In preparing the consolidated financial statements, all
inter-group balances and transactions between entities in
the consolidated Group have been eliminated in full on
consolidation.
Non-controlling interests, being the equity in a subsidiary not
attributable, directly or indirectly, to a parent, are reported
separately within the equity section of the consolidated
statement of financial position and statement of profit or loss
and comprehensive income. The non-controlling interests
in the net assets comprise their interests at the date of the
original business combination and their share of changes in
equity since that date.
c. Business combinations
Business combinations occur where an acquirer obtains control
3. Summary of accounting
over one or more businesses.
policies
a. Overall considerations
The significant accounting policies that have been used in
A business combination is accounted for by applying the
acquisition method, unless it is a combination involving
entities or businesses under common control. The business
combination will be accounted for from the date that control
Notes to the Financial Statements
55 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
55
is attained, whereby the fair value of the identifiable assets
Deferred tax assets and liabilities are calculated at the tax rates
acquired and liabilities (including contingent liabilities) assumed
that are expected to apply to the period when the asset is
is recognised (subject to certain limited exemptions).
realised or the liability is settled and their measurement also
reflects the manner in which management expects to recover
When measuring the consideration transferred in the business
or settle the carrying amount of the related asset or liability.
combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to
Deferred tax assets relating to temporary differences and
initial recognition, contingent consideration classified as equity
unused tax losses are recognised only to the extent that it is
is not remeasured and its subsequent settlement is accounted
probable that future taxable profit will be available against
for within equity. Contingent consideration classified as an
which the benefits of the deferred tax asset can be utilised.
asset or liability is remeasured in each reporting period to fair
value, recognising any change to fair value in profit or loss,
Where temporary differences exist in relation to investments in
unless the change in value can be identified as existing at
subsidiaries, branches, associates, and joint ventures, deferred
acquisition date.
tax assets and liabilities are not recognised where the timing of
the reversal of the temporary difference can be controlled and
All transaction costs incurred in relation to business
it is not probable that the reversal will occur in the foreseeable
combinations are recognised as expenses in profit or loss when
future.
incurred.
The acquisition of a business may result in the recognition of
enforceable right of set-off exists and it is intended that net
goodwill or a gain from a bargain purchase.
settlement or simultaneous realisation and settlement of the
Current tax assets and liabilities are offset where a legally
d. Income Tax
The income tax expense (revenue) for the year comprises
current income tax expense (income) and deferred tax expense
(income).
Current income tax expense charged to profit or loss is the tax
payable on taxable income. Current tax liabilities (assets) are
measured at the amounts expected to be paid to (recovered
from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred
tax asset and deferred tax liability balances during the year as
well as unused tax losses.
Current and deferred income tax expense (income) is charged
or credited outside profit or loss when the tax relates to items
that are recognised outside profit or loss.
Except for business combinations, no deferred income tax is
recognised from the initial recognition of an asset or liability,
where there is no effect on accounting or taxable profit or loss.
respective asset and liability will occur. Deferred tax assets and
liabilities are offset where:
(a) a legally enforceable right of set-off exists; and
(b) the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the
same taxable entity or different taxable entities where it is
intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will
occur in future periods in which significant amounts
of deferred tax assets or liabilities are expected to be
recovered or settled.
e. Property, Plant and Equipment
Each class of property, plant and equipment is carried at
cost or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis and
therefore carried at cost less accumulated depreciation and any
accumulated impairment. In the event the carrying amount of
plant and equipment is greater than the estimated recoverable
amount, the carrying amount is written down immediately to
56 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
the estimated recoverable amount and impairment losses are
An asset’s carrying amount is written down immediately to its
recognised either in profit or loss or as a revaluation decrease
recoverable amount if the asset’s carrying amount is greater
if the impairment losses relate to a revalued asset. A formal
than its estimated recoverable amount.
assessment of recoverable amount is made when impairment
indicators are present.
Gains and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains and losses
The carrying amount of plant and equipment is reviewed
are included in the statement of profit or loss and other
annually by directors to ensure it is not in excess of the
comprehensive income. When revalued assets are sold,
recoverable amount from these assets. The recoverable
amounts included in the revaluation surplus relating to that
amount is assessed on the basis of the expected net cash
asset are transferred to retained earnings.
flows that will be received from the asset’s employment and
subsequent disposal. The expected net cash flows have been
discounted to their present values in determining recoverable
f. Exploration and Development Expenditure
Exploration, evaluation and development expenditures incurred
amounts.
are capitalised in respect of each identifiable area of interest.
These costs are only capitalised to the extent that they are
The cost of fixed assets constructed within the consolidated
expected to be recovered through the successful development
group includes the cost of materials, direct labour, borrowing
of the area or where activities in the area have not yet reached
costs and an appropriate proportion of fixed and variable
a stage that permits reasonable assessment of the existence of
overheads.
economically recoverable reserves.
Subsequent costs are included in the asset’s carrying amount
Accumulated costs in relation to an abandoned area are
or recognised as a separate asset, as appropriate, only when
written off in full against profit in the year in which the
it is probable that future economic benefits associated with
decision to abandon the area is made.
the item will flow to the Group and the cost of the item
can be measured reliably. All other repairs and maintenance
When production commences, the accumulated costs for
are charged to the statement of profit or loss and other
the relevant area of interest are amortised over the life of the
comprehensive income during the financial period in which
area according to the rate of depletion of the economically
they are incurred.
Depreciation
recoverable reserves.
A regular review is undertaken of each area of interest to
The depreciable amount of all fixed assets including buildings
determine the appropriateness of continuing to capitalise costs
and capitalised lease assets, but excluding freehold land, is
in relation to that area of interest.
depreciated on a straight-line or diminishing value basis over
the asset’s useful life to the Group commencing from the time
Costs of site restoration are provided over the life of the
the asset is held ready for use. Leasehold improvements are
project from when exploration commences and are included
depreciated over the shorter of either the unexpired period of
in the costs of that stage. Site restoration costs include the
the lease or the estimated useful lives of the improvements.
dismantling and removal of mining plant, equipment and
The useful life for each class of depreciable assets are:
the site in accordance with local laws and regulations and
Class of Fixed Asset
Plant and equipment
Motor Vehicles
Useful life
2 - 10 years
6 - 8 years
clauses of the permits. Such costs have been determined
using estimates of future costs, current legal requirements and
technology on an undiscounted basis.
building structures, waste removal, and rehabilitation of
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
Notes to the Financial Statements
57 Musgrave Minerals Ltd
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Annual Report 2013
57
Any changes in the estimates for the costs are accounted on a
costs to sell and value-in-use. To determine the value-in-use,
prospective basis. In determining the costs of site restoration,
management estimates expected future cash flows from each
there is uncertainty regarding the nature and extent of
cash-generating unit and determines a suitable interest rate in
the restoration due to community expectations and future
order to calculate the present value of those cash flows. The
legislation. Accordingly the costs have been determined on the
data used for impairment testing procedures are directly linked
basis that the restoration will be completed within one year of
to the Group’s latest approved budget, adjusted as necessary
abandoning the site.
g. Leases
Leases of fixed assets where substantially all the risks and
to exclude the effects of future reorganisations and asset
enhancements. Discount factors are determined individually
for each cash-generating unit and reflect management’s
assessment of respective risk profiles, such as market and
benefits incidental to the ownership of the asset, but not the
asset-specific risks factors.
legal ownership that is transferred to the Group, are classified
as finance leases. Leased assets are depreciated on a straight-
All assets are subsequently reassessed for indications that an
line basis over the shorter of their estimated useful lives or the
impairment loss previously recognised may no longer exist.
lease term.
An impairment charge is reversed if the cash-generating unit’s
recoverable amount exceeds its carrying amount.
Lease payments for operating leases, where substantially all
the risks and benefits remain with the lessor, are recognised as
i. Financial Instruments
expenses in the periods in which they are incurred.
Recognition and initial measurement
Lease incentives under operating leases are recognised as a
Financial assets and financial liabilities are recognised when
liability and amortised on a straight-line basis over the lease
the entity becomes a party to the contractual provisions to the
term.
instrument. For financial assets, this is equivalent to the date
that the Group commits itself to either the purchase or sale of
Finance leases are capitalised by recognising an asset and a
the asset (ie trade date accounting is adopted).
liability at the lower of the amounts equal to the fair value of
the leased property or the present value of the minimum lease
Financial instruments are initially measured at fair value plus
payments, including any guaranteed residual values. Lease
transaction costs, except where the instrument is classified “at
payments are allocated between the reduction of the lease
fair value through profit or loss”, in which case transaction
liability and the lease interest expense for the period.
costs are expensed to profit or loss immediately.
h. Impairment testing of non-current assets
For impairment assessment purposes, assets are grouped at
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value,
the lowest levels for which there are largely independent cash
amortised cost using the effective interest rate method, or
inflows (cash-generating units). As a result, some assets are
cost.
tested individually for impairment and some are tested at cash-
generating unit level.
Amortised cost is the amount at which the financial asset or
financial liability is measured at initial recognition less principal
All assets or cash-generating units are tested for impairment
repayments and any reduction for impairment, and adjusted
whenever events or changes in circumstances indicate that the
for any cumulative amortisation of the difference between that
carrying amount may not be recoverable.
initial amount and the maturity amount calculated using the
effective interest method.
An impairment loss is recognised for the amount by which
the asset’s or cash-generating unit’s carrying amount exceeds
Fair value is determined based on current bid prices for all
its recoverable amount, which is the higher of fair value less
quoted investments. Valuation techniques are applied to
58 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
determine the fair value for all unlisted securities, including
establishment of a separate entity. The Group recognises its
recent arm’s length transactions, reference to similar
interest in the jointly controlled operations by recognising
instruments and option pricing models.
the assets that it controls and the liabilities that it incurs. The
Group also recognises the expenses that it incurs and its share
The effective interest method is used to allocate interest
of the income that it earns from the sale of goods or services
income or interest expense over the relevant period and is
by the jointly controlled operation.
equivalent to the rate that discounts estimated future cash
payments or receipts (including fees, transaction costs and
The Group has entered into a number of Joint Ventures with
other premiums or discounts) through the expected life (or
various parties to explore on certain tenements that the
when this cannot be reliably predicted, the contractual term)
Company has a beneficial interest in.
of the financial instrument to the net carrying amount of the
financial asset or financial liability. Revisions to expected future
net cash flows will necessitate an adjustment to the carrying
k. Equity-settled compensation
The Group operates an employee share option plan. Share-
value with a consequential recognition of an income or
based payments to employees are measured at the fair value
expense item in profit or loss.
of the instruments issued and amortised over the vesting
periods. Share-based payments to non-employees are
The Group does not designate any interests in subsidiaries,
measured at the fair value of goods or services received or the
associates or joint venture entities as being subject to the
fair value of the equity instruments issued, if it is determined
requirements of Accounting Standards specifically applicable to
the fair value of the goods or services cannot be reliably
financial instruments.
(i). Loans and receivables
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
in an active market and are subsequently measured at
amortised cost.
Loans and receivables are included in current assets, where
they are expected to mature within 12 months after the
end of the reporting period.
(ii). Classification and subsequent measurement of
financial liabilities
The Group’s financial liabilities include borrowings and
trade and other payables.
Financial liabilities are measured at amortised cost using
the effective interest method.
All interest-related charges and, if applicable, changes in
an instrument’s fair value that are reported in profit or loss
are included within finance costs or finance income.
j. Interests in Joint Ventures
A joint venture is a contractual arrangement whereby two or
more parties undertake an economic activity that is subject
to joint control. A jointly controlled operation involves use
of assets and other resources of the venturers rather than
measured, and are recorded at the date the goods or services
are received. The corresponding amount is recorded to the
share option reserve. The fair value of options is determined
using the Black-Scholes pricing model. The number of options
expected to vest is reviewed and adjusted at the end of each
reporting period such that the amount recognised for services
received as consideration for the equity instruments granted
is based on the number of equity instruments that eventually
vest.
l. Provisions
Provisions are recognised when the Group has a legal or
constructive obligation, as a result of past events, for which
it is probable that an outflow of economic benefits will result
and that outflow can be reliably measured.
Provisions are measured using the best estimate of the
amounts required to settle the obligation at the end of the
reporting period.
m. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits
available on demand with banks, other short-term highly
liquid investments with original maturities of 6 months or
less, and bank overdrafts. Bank overdrafts are reported within
Notes to the Financial Statements
59 Musgrave Minerals Ltd
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Annual Report 2013
59
short-term borrowings in current liabilities in the statement of
activities which are recoverable from, or payable to, the ATO
financial position.
are presented as operating cash flows included in receipts from
customers or payments to suppliers.
n. Revenue and Other Income
Revenue is measured at the fair value of the consideration
received or receivable after taking into account any trade
q. Government Grants
Government grants are recognised at fair value where there
discounts and volume rebates allowed. When the inflow
is reasonable assurance that the grant will be received and all
of consideration is deferred, it is treated as the provision
grant conditions will be met. Grants relating to expense items
of financing and is discounted at a rate of interest that is
are recognised as income over the periods necessary to match
generally accepted in the market for similar arrangements. The
the grant to the costs they are compensating. Grants relating
difference between the amount initially recognised and the
to assets are credited to deferred income at fair value and are
amount ultimately received is interest revenue. Revenue from
credited to income over the expected useful life of the asset on
the sale of goods is recognised at the point of delivery as this
a straight-line basis.
corresponds to the transfer of significant risks and rewards of
ownership of the goods and the cessation of all involvement in
those goods.
r. Contributed equity
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
Interest revenue is recognised using the effective interest rate
shown in equity as a deduction, net of tax, from the proceeds.
method.
All revenue is stated net of the amount of goods and services
tax (GST).
o. Borrowing Costs
Borrowing costs directly attributable to the acquisition,
construction or production of assets that necessarily take a
s. Earnings per share
Basic earnings per share is calculated as net profit attributable
to members of the parent, adjusted to exclude any costs
of servicing equity (other than dividends), divided by the
weighted average number of ordinary shares, adjusted for any
bonus element.
substantial period of time to prepare for their intended use or
Diluted earnings per share adjusts the figures used in the
sale are added to the cost of those assets, until such time as
determination of basic earnings per share to take into account
the assets are substantially ready for their intended use or sale.
the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential
All other borrowing costs are recognised in profit or loss in the
ordinary shares.
period in which they are incurred.
p. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
t. Comparative Figures
When required by Accounting Standards, comparative figures
have been adjusted to conform to changes in presentation for
amount of GST, except where the amount of GST incurred is
the current financial year.
not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the ATO is included with other receivables
or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST
u. Critical Accounting Estimates and
Judgments
The Directors evaluate estimates and judgments incorporated
into the financial statements based on historical knowledge
and best available current information. Estimates assume a
reasonable expectation of future events and are based on
current trends and economic data, obtained both externally
components of cash flows arising from investing or financing
and within the Group.
60 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
Key estimates
(i)
Impairment
on non-depreciable assets measured using the revaluation
model in AASB 116 Property, Plant and Equipment should
always be based on recovery through sale.
The Group assesses impairment at the end of each
reporting period by evaluating conditions and events
specific to the Company that may be indicative of
impairment triggers. Recoverable amounts of relevant
assets are reassessed using value-in-use calculations which
incorporate various key assumptions.
These amendments have had no impact on the Group.
AASB 2011-9 Amendments to Australian Accounting
Standards – Presentation of Items of Other
Comprehensive Income (Applies annual reporting
periods beginning on or after 1 July 2012)
(ii) Exploration and evaluation expenditure
The Group capitalises expenditure relating to exploration
and evaluation where it is considered likely to be
recoverable or where the activities have not reached
a stage that permits a reasonable assessment of the
existence of reserves. While there are certain areas of
interest from which no reserves have been extracted,
the Directors are of the continued belief that such
expenditure should not be written off since the evaluation
of such areas have not yet concluded. Such capitalised
expenditure is carried at the end of the reporting period at
$17,055,933 (2012: $13,538,949).
v. New and amended standards adopted by
the Group
AASB 2010-8 Amendments to Australian Accounting
Standard – Deferred Tax: Recovery of Underlying Assets
(Applies to annual reporting periods beginning on or
after 1 January 2012)
AASB 2010-8 provides clarification on the determination of
deferred tax assets and deferred tax liabilities when investment
properties are measured using the fair value model in
AASB 140 Investment Properties. It introduces a rebuttable
presumption that an investment property is recovered entirely
through sale. This presumption is rebutted if the investment
property is held within a business model where the objective
is to consume substantially all of the economic benefits
embodied in the investment property over time, rather than
through sale.
AASB 2010-8 also includes the requirement that the
measurement of deferred tax assets and deferred tax liabilities
AASB 2011-9 requires entities to group items presented in
Other Comprehensive Income on the basis of whether they
are potentially re-classifiable to profit or loss subsequently, and
changes the title of ‘statement of comprehensive income’ to
‘statement of profit or loss and other comprehensive income’.
The adoption of the new and revised Australian Accounting
Standards and Interpretations has had no significant impact
on the Group’s accounting policies or the amounts reported
during the current year. The adoption of AASB 2011-9 has
resulted in changes to the Group’s presentation of its financial
statements.
w. Accounting standards issued but not yet
effective and not been adopted early by the
Group
The Group notes the following Accounting Standards which
have been issued but are not yet effective at 30 June 2013.
These standards have not been adopted early by the Group.
The Group ‘s assessment of the impact of these new standards
and interpretations is set out below:
(i) AASB 9 Financial Instruments, AASB 2009-11
Amendments to Australian Accounting Standards arising
from AASB 9, AASB 2010-7 Amendments to Australian
Accounting Standards arising from AASB 9 (December
2010) and AASB 2012-6 Amendments to Australian
Accounting Standards – Mandatory Effective Date of AASB
9 and Transition Disclosures (effective from 1 January
2015)
Notes to the Financial Statements
61 Musgrave Minerals Ltd
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Annual Report 2013
61
AASB 9 introduces new requirements for the classification
Recognition and Measurement and have not been
and measurement of financial assets and liabilities.
changed. The Group has not yet decided when to adopt
These requirements improve and simplify the approach
for classification and measurement of financial assets and
AASB 9.
liabilities compared with the requirements of AASB 139.
(ii) AASB 10 Consolidated Financial Statements, AASB 11
The main changes are:
-
Financial assets that are debt instruments will be
Joint Arrangements, AASB 12 Disclosure of Interests
in Other Entities, revised AASB 127 Separate Financial
Statements, AASB 128 Investments in Associates and
classified based on (1) the objective of the entity’s
Joint Ventures, AASB 2011-7 Amendments to Australian
business model for managing the financial assets; and
Accounting Standards arising from the Consolidation
(2) the characteristics of the contractual cash flows.
and Joint Arrangements Standards and AASB 2012-10
- Allows an irrevocable election on initial recognition
Transition Guidance and Other Amendments (effective 1
Amendments to Australian Accounting Standards –
to present gains and losses on investments in equity
January 2013)
instruments that are not held for trading in other
comprehensive income (instead of in profit or loss).
- Dividends in respect of these investments that are
a return on investment can be recognised in profit
or loss and there is no impairment or recycling on
disposal of the instrument.
-
Financial assets can be designated and measured at
fair value through profit or loss at initial recognition
if doing so eliminates or significantly reduces a
measurement or recognition inconsistency that
would arise from measuring assets or liabilities, or
recognising the gains and losses on them, on different
bases.
- Where the fair value option is used for financial
liabilities the change in fair value is to be accounted
for as follows;
-
The change attributable to changes in credit risk are
presented in other comprehensive income (OCI) and;
- AASB 10 replaces all of the guidance on control
and consolidation in AASB 127 Consolidated and
Separate Financial Statements, and Interpretation 12
Consolidation – Special Purpose Entities.
The core principle that a consolidated entity presents a
parent and its subsidiaries as if they are a single economic
entity remains unchanged, as do the mechanics of
consolidation. However, the standard introduces a single
definition of control that applies to all entities. It focuses
on the need to have both power and rights or exposure to
variable returns. Power is the current ability to direct the
activities that significantly influence returns. Returns must
vary and can be positive, negative or both. Control exists
when the investor can use its power to affect the amount
of its returns.
When this standard is first adopted for the year ended 30
June 2014, there will be no impact on the transactions
and balances recognised in the financial statements.
-
The remaining change is presented in profit or loss.
- AASB 11 replaces AASB 131 Interests in Joint Ventures
There will be no impact on the Group’s accounting for
financial liabilities, as the new requirements only affect
the accounting for financial liabilities that are designated
at fair value through profit or loss and the Group does
not have any such liabilities. The de-recognition rules have
been transferred from AASB 139 Financial Instruments:
and AASB Interpretation 113 Jointly-controlled Entities
– Non-monetary Contributions by Ventures. AASB 11
uses the principle of control in AASB 10 to define joint
control, and therefore the determination of whether
joint control exists may change.
62 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
In addition, AASB 11 removes the option to account
The Group is yet to undertake a detailed analysis of
for jointly-controlled entities using proportionate
the differences between the current fair valuation
consolidation. Instead, accounting for a joint arrangement
methodologies used and those required by AASB 13.
is dependent on the nature of the rights and obligations
However, when this standard is adopted for the first time
arising from the arrangement. Joint operations that
for the year ended 30 June 2014, there will be no impact
give the venturers a right to the underlying assets and
on the financial statements because the revised fair value
obligations for liabilities are accounted for by recognising
measurement requirements apply prospectively from 1
the share of those assets and liabilities. Joint ventures that
January 2013.
give the venturers a right to the net assets are accounted
for using the equity method.
When this standard is first adopted for the year ended 30
Amendments to Australian Accounting Standards arising
June 2014, there will be no impact on transactions and
from AASB 119 (September 2011)
(iv) Revised AASB 119 Employee Benefits and AASB 2011-10
balances recognised in the financial statements because
the joint arrangements in place relate to joint operations.
- AASB 12 sets out the required disclosures for entities
reporting under the two new standards, AASB 10 and
AASB 11, and replaces the disclosure requirements
currently found in AASB 127 and AASB 128.
Application of this standard by the Group will not
affect any of the amounts recognised in the financial
statements, but will impact the type of information
disclosed in relation to the Group’s investments.
Amendments to AASB 128 provide clarification that an
entity continues to apply the equity method and does
not remeasure its retained interest as part of ownership
changes where a joint venture becomes an associate,
and vice versa. The amendments also introduce a “partial
disposal” concept.
When this standard is first adopted for the year ended 30
June 2014, there will be no impact on the transactions
and balances recognised in the financial statements.
(iii) AASB 13 Fair Value Measurement and AASB 2011-8
Amendments to Australian Accounting Standards arising
from AASB 13 (effective 1 January 2013)
AASB 13 explains how to measure fair value and aims
to enhance fair value disclosures. Application of the new
standard will impact the type of information disclosed in
the notes to the financial statements.
The AASB released a revised standard on accounting
for employee benefits. It requires the recognition of all
re-measurements of defined benefit liabilities/assets
immediately in other comprehensive income (removal
of the so-called ‘corridor’ method), the immediate
recognition of all past service cost in profit or loss and the
calculation of a net interest expense or income by applying
the discount rate to the net defined benefit liability or
asset. This replaces the expected return on plan assets that
is currently included in profit or loss. The standard also
introduces a number of additional disclosures for defined
benefit liabilities/assets and could affect the timing of the
recognition of termination benefits. The amendments will
have to be implemented retrospectively.
The Group does not have any defined benefit plans.
Therefore, these amendments will have no impact on the
Group.
(v) AASB Interpretation 20 Stripping Costs in the Production
Phase of Surface Mining
This interpretation clarifies that costs of removing mine
waste materials (overburden) to gain access to mineral ore
deposits during the production phase of a mine must be
capitalised as inventories under AASB 102 Inventories, if
the benefits from stripping activity is realised in the form
of inventory produced. Otherwise, if stripping activity
provides improved access to the ore, stripping costs must
Notes to the Financial Statements
63 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
63
be capitalised as a non-current asset (if certain recognition
(viii) AASB 2012-3 Amendments to Australian Accounting
criteria are met, as an addition to, or enhancement of, an
Standards – Offsetting Financial Assets and Financial
existing asset).
Liabilities
The Group does not operate a surface mine. Therefore,
there will be no impact on the financial statements when
this interpretation is first adopted for reporting periods
commencing from 1 January 2013.
AASB 2012-3 adds application guidance to AASB 132 to
address inconsistencies identified in applying some of the
offsetting criteria of AASB 132, including clarifying the
meaning of “currently has a legally enforceable right of
set-off” and that some gross settlement systems may be
considered equivalent to net settlement.
(vi) AASB 2011-4 Amendments to Australian Accounting
Standards to Remove Individual Key Management
When AASB 2012-3 is first adopted for the year ended 30
Personnel Disclosure Requirements
June 2015, there will be no impact on the Group as this
standard merely clarifies existing requirements in AASB
The Standard amends AASB 124 Related Party Disclosures
132.
to remove the individual key management personnel
(KMP) disclosures required by Australian specific
paragraphs. This amendment reflects the AASB’s view that
these disclosures are more in the nature of governance
disclosures that are better dealt within the legislation,
rather than by the accounting standards.
When these amendments are first adopted for the year
ending 30 June 2014, they are unlikely to have any
significant impact on the Group.
(vii) AASB 2012-2 Amendments to Australian Accounting
Standards – Disclosures – Offsetting Financial Assets
and Financial Liabilities
This Standard amends the required disclosures in AASB 7
to include information that will enable users of an entity’s
financial statements to evaluate the effect or potential
effect of netting arrangements, including rights of set-off
associated with the entity’s recognised financial assets
and recognised financial liabilities, on the entity’s financial
position.
This Standard also amends AASB 132 to refer to the
additional disclosures added to AASB 7 by this Standard.
When this AASB 2012-2 is first adopted for the year
ended 30 June 2014, there will be no impact on
the Group as the Group does not have any netting
arrangements in place.
(ix) Recoverable Amount Disclosures for Non-Financial Assets
(Amendments to IAS 36)
These narrow-scope amendments address disclosure of
information about the recoverable amount of impaired
assets if that amount is based on fair value less costs of
disposal.
When these amendments are adopted for the first time on
1 January 2014, they are unlikely to have any significant
impact on the Group given that they are largely of the
nature of clarification of existing requirements.
(x)
IFRIC Interpretation 21 Levies
IFRIC 21 addressed how an entity should account for
liabilities to pay levies imposed by governments, other
than income taxes, in its financial statements (in particular,
when the entity should recognise a liability to pay a levy).
IFRIC 21 is an interpretation of IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. IAS 37 sets
out criteria for the recognition of a liability, one of which is
the requirement for the entity to have a present obligation
as a result of a past event (known as an obligating event).
64 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
The Interpretation clarifies that the obligating event that
There are no other standards that are not yet effective
gives rise to a liability to pay a levy is the activity described
and that are expected to have a material impact on the
in the relevant legislation that triggers the payment of
entity in the current or future reporting periods and on
the levy. For example, if the activity that triggers the
foreseeable future transactions.
payment of the levy is the generation of revenue in the
current period and the calculation of that levy is based on
the revenue that was generated in a previous period, the
obligating event for that levy is the generation of revenue
4. Operating Segments
in the current period. The generation of revenue in the
The Board has considered the requirements of AASB 8
previous period is necessary, but not sufficient, to create a
Operating Segments and the internal reports that are reviewed
present obligation.
by the chief operating decision maker (the Managing Director)
in allocating resources and have concluded at this time that
When this interpretation is adopted for the first time on 1
there are no separately identifiable segments.
January 2014, there will be no significant impact on the
financial statements as the Group is not subject to any
levies addressed by this interpretation.
Notes to the Financial Statements
65 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
65
5. Revenue and expenses
(a) Other income
Interest revenue
Fuel tax credits
(b) Depreciation of non current assets
Plant and equipment
Motor Vehicles
(c) Finance expenses
Finance costs
Interest applicable to hire-purchase
(d) Employees benefits expense
Wages, salaries, directors fees and other remuneration expenses
Superannuation expense
Transfer to/(from) annual leave provision
Transfer to/(from) long service leave provision
Share-based payments expense
Transfer to capitalised tenements
(e) Other expenses from ordinary activities
Secretarial, professional and consultancy
Occupancy costs
Share register maintenance
Insurance costs
Promotion, advertising and sponsorship
Audit fees
Computer expenses
Recruitment costs
Employer related on-costs
Other expenses
Consolidated
2013
$
2012
$
578,699
2,914
581,613
60,199
28,850
89,049
85
8,186
8,271
1,228,097
103,772
3,457
9,437
23,808
(904,299)
464,272
184,824
104,550
33,836
30,529
31,467
30,264
47,053
-
55,161
25,833
543,517
914,964
11,345
926,309
81,411
29,994
111,405
592
10,542
11,134
1,173,740
101,473
64,230
2,986
37,485
(870,124)
509,790
88,776
100,722
34,495
33,766
25,301
13,250
39,438
31,610
34,563
163,711
565,632
66 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
6. Income tax (benefit)/expense
Income Tax
The major components of income tax expense are:
Statement of Profit or Loss and Other Comprehensive Income
Current income tax
Current income tax charge/(benefit)
Research and Development Tax offset
Income tax expense/(benefit) reported in the income
statement
Consolidated
2013
$
2012
$
-
4,530
(292,626)
-
(292,626)
4,530
A reconciliation between tax expense and the product of accounting profit before income tax multiplied by the Group’s applicable income tax
rate is as follows:
Accounting profit/(loss) before income tax
(878,435)
(271,652)
At the Group’s statutory income tax rate of 30% (2012: 30%)
(263,531)
(81,496)
Immediate write off of capital expenditure
(1,161,577)
(1,182,503)
Expenditure not allowable for income tax purposes
113,993
11,830
Other deductible items
(64,905)
(64,905)
Tax losses not recognised due to not meeting recognition criteria
1,376,020
1,317,074
Tax portion of share issue costs
-
4,530
-
4,530
The Company has tax losses arising in Australia of $11,102,030 (2012: $6,649,093) that are available indefinitely for offset against
future taxable profits of the companies in which the losses arose.
Notes to the Financial Statements
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Annual Report 2013
67
7. Earnings per share
8. Cash and cash equivalents
Basic earnings per share amounts are calculated by dividing
net profit for the year attributable to ordinary equity holders of
the parent by the weighted average number of ordinary shares
Consolidated
2013
$
2012
$
outstanding during the year.
Cash and Cash Equivalents
Diluted earnings per share amounts are calculated by dividing
the net profit attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during the year plus the weighted average
number of ordinary shares that would be issued on the
conversion of all the dilutive potential ordinary shares into
ordinary shares.
Cash at bank and in hand
1,155,706
460,860
Short-term deposits
8,410,000
13,110,000
9,565,706
13,570,860
Reconciliation to Statement
of Cash Flows
For the purposes of the Statement of Cash Flows, cash and cash
equivalents comprise the following at 30 June:
Cash at banks and in hand
1,155,706
460,860
The following reflects the income and share data used in the
Short-term deposits
8,410,000
13,110,000
basic and diluted earnings per share computations:
9,565,706
13,570,860
Reconciliation of net loss after tax to net cash flows from
Consolidated
2013
$
2012
$
(585,809)
(276,182)
Net profit/(loss)
attributable to ordinary
equity holders of the
parent entity
Weighted average number
of ordinary shares for basic
121,000,000
121,000,000
earnings per share
Effect of dilution
Share options
N/A
N/A
Weighted average number
121,000,000
121,000,000
of ordinary shares adjusted
for the effect of dilution
In accordance with AASB 133 ’Earnings per Share’, as
potential ordinary shares may only result in a situation where
their conversion results in an increase in loss per share or
decrease in profit per share from continuing operations, no
dilutive effect has been taking into account.
There have been no other transactions involving ordinary
shares or potential ordinary shares between the reporting date
and the date of completion of these financial statements.
operations
Net loss
Adjustments for non-cash
items:
Depreciation
Share based payments
Non cash income tax expense
Changes in assets and
liabilities
Decrease/(Increase) in trade
and other receivables
Decrease/(Increase) in
prepayments
Decrease/(Increase) in interest
receivable
Increase/(Decrease) in trade
and other payables
Increase/(Decrease) in
employee entitlements
Net cash (used in)/provided
by operating activities
(585,809)
(276,182)
89,049
23,808
-
111,405
37,485
4,530
9,576
643
127,226
223,166
12,894
61,567
32,730
(28,962)
(212,280)
67,216
(99,447)
(202,491)
68 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
9. Trade and other receivables
11. Property, plant and equipment (continued)
Consolidated
2013
$
2012
$
Consolidated
2013
$
2012
$
Goods & Services Tax
receivable
116,656
121,912
equipment
Property, plant and
Fuel tax credits receivable
7,025
11,345
Cost
123,681
133,257
Balance at 1 July
181,156
128,761
Information regarding the credit risk of current receivables is
set out in note 23.
Additions
Disposals
41,212
-
54,478
(2,083)
Balance at 30 June
222,368
181,156
10. Other current assets
Accumulated depreciation
Balance at 1 July
Depreciation for the year
Consolidated
Disposals
91,620
60,199
-
151,819
70,549
11,280
81,411
(1,071)
91,620
89,536
Balance at 30 June
Net book value
Total
Cost
Opening balance
347,701
225,858
Additions
Disposals
41,212
123,926
-
(2,083)
Balance at 30 June
388,913
347,701
Accumulated depreciation
Opening balance
123,425
13,091
Depreciation for the year
89,049
111,405
Disposals
-
(1,071)
Balance at 30 June
212,474
123,425
Net book value
176,439
224,276
Prepayments
Accrued income
2013
$
3,118
51,042
54,160
2012
$
3,761
178,268
182,029
11. Property, plant and equipment
Consolidated
2013
$
2012
$
166,545
-
97,097
69,448
Motor vehicles
Cost
Balance at 1 July
Additions
Balance at 30 June
166,545
166,545
Accumulated depreciation
Balance at 1 July
Depreciation for the year
Balance at 30 June
31,805
28,850
60,655
1,811
29,994
31,805
Net book value
105,890
134,740
Notes to the Financial Statements
69 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
69
12. Exploration and evaluation
assets
• Options are granted under the Plan at the discretion of the
Board and if permitted by the Board, may be issued to an
employee’s nominee.
Consolidated
2013
$
2012
$
Exploration and evaluation
17,055,933
13,538,949
phases
17,055,933
13,538,949
• Each option is to subscribe for one fully paid ordinary
share in the Company and will expire 5 years from its
date of issue. An option is exercisable at any time from
its date of issue. Options will be issued without cost
to the employee. The exercise price of options will be
determined by the Board, subject to a minimum price
equal to the market value of the Company’s shares at the
The ultimate recoupment of costs carried forward for
time the Board resolves to offer those options. The total
exploration and evaluation phases is dependent on the
number of shares the subject of options issued under the
successful development and commercial exploitation or sale of
Plan, when aggregated with issues during the previous 5
the respective mining areas.
years pursuant to the Plan and any other employee share
plan, must not exceed 5% of the Company’s issued share
Consolidated group
Exploration
Total
capital.
$
$
•
If, prior to the expiry date of options, a person ceases to
Balance 1 July 2012
13,538,949
13,538,949
be an employee of a Group company for any reason other
Additions through expenditure
3,871,923
3,871,923
than retirement at age 60 or more (or such earlier age as
capitalised
the Board permits), permanent disability, redundancy or
Imairment of relinquished
(354,939)
(354,939)
death, the options held by that person (or that person’s
tenements
nominee) automatically lapse on the first to occur of a)
Balance at 30 June 2013
17,055,933
17,055,933
the expiry of the period of 6 months from the date of
Exploration and Evaluation expenditure has been carried
forward to the extent that it is expected to be recouped
through the successful development of the area or where
activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically
recovered reserves.
13. Share based payments
Employee Share Option Plan
The Company has established the Musgrave Minerals Ltd
Employee Share Option Plan and a summary of the Rules of
the Plan are set out below:
such occurrence, and b) the expiry date. If a person dies,
the options held by that person will be exercisable by that
person’s legal personal representative.
• Options cannot be transferred other than to the legal
personal representative of a deceased option holder.
• The Company will not apply for official quotation of any
options.
• Shares issued as a result of the exercise of options will rank
equally with the Company’s previously issued shares.
• Option holders may only participate in new issues of
securities by first exercising their options.
The Board may amend the Plan Rules subject to the
requirements of the Listing Rules. The expense recognised
in the Statement of Profit or Loss and Other Comprehensive
• All employees (full and part time) will be eligible to
Income in relation to share-based payments is disclosed in
participate in the Plan after a qualifying period of 12
note 6(d). The following table illustrates the number (No.) and
months employment by a member of the Group, although
weighted average exercise prices (WAEP) and movements in
the Board may waive this requirement.
share options under the Company’s Employee Share Option
Plan issued during the year:
70 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
2013
2013
2012
2012
No.
WAEP
No.
WAEP
Outstanding
16,025,000
0.33
15,500,000
0.33
The fair value of the equity-settled share options granted
under the option plan is estimated as at the date of grant
using a Black-Scholes model taking into account the terms and
conditions upon which the options were granted.
575,000
0.25
525,000
0.25
year ended 30 June 2013 and 30 June 2012:
The following table lists the inputs to the model used for the
at the
beginning of
the year
Granted
during the
year
2013
2012
Historical volatility (%)
82%
114%
Risk-free interest rate (%)
3.12%
3.43%
Expected life of option (years)
5
5
Expired/
(150,000)
0.25
-
-
lapsed during
the year
Outstanding
16,450,000
0.32
16,025,000
0.33
at the end of
the year
Exercisable
16,450,000
0.32
1,025,000
0.30
14. Trade and other payables
at the end
of the year
The outstanding balance as at 30 June 2013 is represented by
the following options:
Trade payables (i)
Other payables (ii)
Consolidated
2013
$
2012
$
94,018
43,606
157,043
269,826
251,061
313,432
Issue Date
Expiry Date
21/08/2010
20/08/2015
17/02/2011
17/02/2016
17/02/2011
17/02/2016
09/05/2011
08/05/2016
24/01/2012
23/01/2017
06/03/2013
05/03/2018
25/03/2013
24/03/2018
Exercise
Price
Number
of options
outstanding
$0.25
$0.36
$0.50
$0.36
$0.25
$0.25
$0.25
7,750,000
4,750,000
2,500,000
500,000
375,000
500,000
75,000
16,450,000
i.
Trade payables are non-interest bearing and are normally
settled on 30-day terms.
ii. Other payables are non-interest bearing and are normally
settled within 30 - 90 days. Information regarding the
credit risk of current payables is set out in note 23.
15. Borrowings
The weighted average remaining contractual life for the share
options outstanding as at 30 June 2013 is 2.50 years (2012:
3.44 years).
Current
Hire purchase contracts
The range of exercise prices for options outstanding at the end
of the year was $0.25 - $0.50 (2012: $0.25 - $0.50).
Non-current
The weighted average fair value of options granted during the
year was $0.041 (2012: $0.071).
Hire purchase contracts
Consolidated
2013
$
2012
$
47,293
47,293
6,174
6,174
64,587
64,587
50,854
50,854
Motor vehicles with a carrying value of $100,923 (2012:
$128,117) act as security for the hire purchase liabilities.
Notes to the Financial Statements
71 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
71
16. Provisions
Current
Annual leave provision:
Consolidated
2013
$
2012
$
21. Contingent liabilities and
contingent assets
At the date of signing this report, the Company is not aware
of any Contingent Asset or Liability that should be disclosed
in accordance with AASB 137. It is however noted that the
Company has various bank guarantees totalling $110,000 at
Balance at 1 July
87,060
22,830
30 June 2013 (2012: $110,000) which act as collateral over
Net increase/(decrease in
provision)
3,457
64,230
Company’s Visa business credit cards.
the lease of offices at 19 Richardson St, West Perth and the
Closing balance 30 June
90,517
87,060
Non-current
Long service leave:
Balance at 1 July
Net increase/(decrease in
provision)
4,182
9,437
Closing balance 30 June
13,619
1,196
2,986
4,182
17. Issued capital
Consolidated
2013
$
2012
$
121,000,000 fully paid ordinary
shares (2012: 121,000,000)
26,718
26,718,899
22. Auditor’s remuneration
Consolidated
2013
$
2012
$
Audit or review of the financial
report
30,264
13,250
30,264
13,250
23. Financial risk management
Capital risk management
The Group manages its capital to ensure that it will be able to
continue as a going concern while maximising the return to
26,718,899
26,718,899
stakeholders.
There were no movements in issued capital either in the
current year or for the year ended 30 June 2012.
Effective 1 July 1998, the Corporations legislation in place
abolished the concepts of authorised capital and par value
shares. Accordingly, the Company does not have authorised
capital nor par value in respect of its issued shares.
Fully paid ordinary shares carry one vote per share and carry
the right to dividends (in the event such a dividend was
declared).
The capital structure of the Group consists of cash and cash
equivalents and equity attributable to equity holders of the
parent, comprising issued capital, reserves and accumulated
losses as disclosed in notes 17, 18 and 19 respectively.
Proceeds from share issues are used to maintain and expand
the Group’s exploration activities and fund operating costs.
Financial Assets
Cash and cash
equivalents
Trade receivables
Financial Liabilities
Payables
Borrowings
2013
$
2012
$
9,565,706
13,570,860
123,681
133,257
251,061
53,467
313,432
115,441
72 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
Credit risk management
Credit risk refers to the risk that a counterparty will default
Liquidity risk management
Ultimate responsibility for liquidity risk management rests
on its contractual obligations resulting in financial loss to the
with the Board, which has built an appropriate liquidity
Group. The Group has adopted a policy of only dealing with
risk management framework for the management of the
creditworthy counterparties as a means of mitigating the risk
Group’s short, medium and long-term funding and liquidity
of financial loss from activities.
management requirements. The Group manages liquidity risk
by maintaining adequate reserves.
The Group does not have any significant credit risk exposure to
any single counterparty or any group of counterparties having
similar characteristics. The credit risk on liquid funds is limited
Liquidity and interest risk tables
The following table details the Company’s remaining
because the counterparties are banks with high credit-ratings
contractual maturity for its non-derivative financial liabilities.
assigned by international credit-rating agencies.
The table has been drawn up based on the undiscounted cash
The carrying amount of financial assets recorded in the
the Company can be required to pay. The table includes both
flows of financial liabilities based on the earliest date on which
financial statements, net of any allowances for losses,
interest and principal cash flows.
represents the Group’s maximum exposure to credit risk.
Weighted
average
effective
interest
rate %
Less than
one year
$
Longer than
1 year
and not
longer
than 5 years
$
8.66
47,293
6,174
-
251,061
-
Weighted
average
effective
interest
rate %
Less than
one year
$
Longer than
1 year
and not
longer
than 5 years
$
8.66
64,587
50,854
-
313,432
-
2013
Interest
bearing
Non-interest
bearing
2012
Interest
bearing
Non-interest
bearing
Interest rate risk
The tables below detail the Group’s interest bearing assets,
consisting solely of cash on hand and on short term deposit
(with all maturities less than one year in duration).
Weighted
average
effective
interest rate %
Less than one
year
$
2013
Fixed interest rate
Variable interest rate
4.21
-
8,410,000
1,155,706
Weighted
average
effective
interest rate %
Less than one
year
$
2012
Fixed interest rate
5.54
13,110,000
Variable interest rate
-
460,860
At reporting date, if interest rates had been 50 basis points
higher or lower and all other variables were held constant, the
Group’s:
• net loss would increase or decrease by $42,050 which is
mainly attributable to the Group’s exposure to interest
rates on its variable bank deposits.
Notes to the Financial Statements
73 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
73
24. Controlled entities
Country of
incorporation
Ownership interest
2013
%
2012
%
Australia
Australia
100
-
Name of
entity
Parent entity
Musgrave
Minerals Ltd
Subsidiaries
Musgrave
Exploration
Pty Ltd
Guarantees
Musgrave Minerals Ltd has not entered into any guarantees, in
the current or previous financial year, in relation to the debts
of its subsidiaries.
Contingent Liabilities
Contingent liabilities of the parent entity have been
incorporated into the Group information in note 21. The
contingent liabilities of the parent are consistent with that of
the Group.
Contractual Commitments
Contractual Commitments of the parent entity have been
incorporated into the Group information in note 20. The
contractual commitments of the parent are consistent with
25. Parent entity information
that of the Group.
2013
$
2012
$
Financial Position
Assets
Current Assets
9,743,547
13,886,146
Non-current Assets
17,232,372
13,763,225
26. Related party disclosure and
key management personnel
remuneration
26,975,919
27,649,371
The following individuals are classified as key management
personnel in accordance with AASB 124 ’Related Party
Liabilities
Disclosures’:
Current liabilities
388,871
465,079
Graham Ascough, Non-Executive Chairman
Non-current Liabilities
19,793
55,036
Robert Waugh, Managing Director
408,664
520,115
Kelly Ross, Non-Executive Director
Equity
Issued Capital
26,718,899
26,718,899
Reserves
2,958,083
2,944,985
Retained Earnings
(3,109,727)
(2,534,628)
John Percival, Non-Executive Director
Donald Stephens, Company Secretary
Justin Gum, Principal Geologist
Ian Warland, Exploration Manager
Financial Performance
found in the remuneration report.
26,567,255
27,129,256
Details of key management personnel’s remuneration can be
(Loss) for the year
(585,809)
(276,182)
Other comprehensive
-
-
income
(585,809)
(276,182)
74 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
a). Aggregate remuneration for Key Management Personnel
Short-term employee benefits
Post employment benefits
Share-based payments
Consolidated
2013
$
2012
$
630,513
49,793
21,550
701,856
560,155
56,545
-
616,700
(b). Option holdings of Key Management Personnel
30-Jun-13
Balance at
beginning
of period
Granted as
remuneration
Options
Exercised
Net
change
other
Balance
at end of
period
Vested at 30 June 2013
Expiry
Date
First
Exercise
Date
Last
Exercise
Date
Graham Ascough
750,000
Robert Waugh
John Percival
Kelly Ross
Donald Stephens
Justin Gum
Ian Warland
2,500,000
2,500,000
500,000
500,000
500,000
500,000
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
17/02/16
28/04/13
17/02/16
2,500,000
17/02/16
28/04/13
17/02/16
2,500,000
17/02/16
28/04/13
17/02/16
500,000
17/02/16
28/04/13
17/02/16
500,000
17/02/16
28/04/13
17/02/16
500,000
17/02/16
28/04/13
17/02/16
500,000
08/05/16
09/05/11
08/05/16
500,000
05/03/18
06/03/15
05/03/18
30-Jun-12
Balance at
beginning
of period
Granted as
remuneration*
Options
Exercised
Net
change
other
Balance
at end of
period
Vested at 30 June 2012
Expiry
Date
First
Exercise
Date
Last
Exercise
Date
Graham Ascough
750,000
Robert Waugh
John Percival
Kelly Ross
Donald Stephens
Justin Gum
2,500,000
2,500,000
500,000
500,000
500,000
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
17/02/16
28/04/13
17/02/16
2,500,000
17/02/16
28/04/13
17/02/16
2,500,000
17/02/16
28/04/13
17/02/16
500,000
17/02/16
28/04/13
17/02/16
500,000
17/02/16
28/04/13
17/02/16
500,000
17/02/16
28/04/13
17/02/16
500,000
08/05/16
09/05/11
08/05/16
Notes to the Financial Statements
75 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
75
(c). Shareholdings of Key Management Personnel
30 June 2013
Balance at 1 July 12
On Exercise of
Options
Net Change Other
Balance 30 June 13
Directors
Graham Ascough
Robert Waugh
John Percival
Kelly Ross
Donald Stephens
Justin Gum
Ian Warland
200,000
80,000
100,000
50,000
-
40,000
-
30 June 2012
Balance at 1 July 11
On Exercise of
Options
Directors
Graham Ascough
Robert Waugh
John Percival
Kelly Ross
Donald Stephens
Justin Gum
200,000
80,000
100,000
50,000
-
40,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
Net Change Other
-
-
-
-
-
-
-
-
-
-
200,000
80,000
200,000
50,000
-
40,000
-
Balance 30 June 12
200,000
80,000
100,000
50,000
-
40,000
Director related entities
During the year, Musgrave Minerals Ltd was invoiced by Mithril Resources Ltd (‘Mithril’) in relation to expenditure incurred by Mithril
on Musgrave’s behalf. These transactions were undertaken on an arm’s length basis and in aggregate for the year ended 30 June
2013 totalled $54,802 excluding GST (2012: $51,810).
HLB Mann Judd (SA) Pty Ltd has received professional fees for accounting, taxation and secretarial services provided during the year
amounting to $150,541 including GST (2012: $131,671). Donald Stephens, the Company Secretary, is a consultant with HLB Mann
Judd (SA) Pty Ltd.
27. Subsequent events
The Directors are not aware of any significant events that have occurred since the end of the reporting period that should be
disclosed.
76 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Notes to the Financial Statements
Directors’ Declaration
In accordance with a resolution of the Directors of Musgrave Minerals Ltd, the Directors of the Company declare that:
1. the consolidated financial statements and notes, as set out on pages 51 to 76, are in accordance with the Corporations Act 2001
and:
a. comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements,
constitutes compliance with International Financial Reporting Standards (IFRS); and
b. give a true and fair view of the financial position as at 30 June 2013 and of the performance for the year ended on that date
of the consolidated Group;
2. in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
3. the Managing Director and Company Secretary have each declared that:
a. the financial records of the company for the financial year have been properly maintained in accordance with section 286 of
the Corporations Act 2001;
b. the financial statements and notes for the financial year comply with Accounting Standards; and
c. the financial statements and notes for the financial year give a true and fair view; and
This declaration is made in accordance with a resolution of the Board of Directors.
Mr Graham Ascough
Chairman
25 September 2013
Directors’ Declaration
77 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
77
78 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Independent Auditor’s Report
Independent Auditor’s Report
79 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Annual Report 2013
79
80 Musgrave Minerals Ltd
Musgrave Minerals Ltd
Independent Auditor’s Report
ASX Additional
Information
Additional information required by the Australian Stock
Exchange Limited and not shown elsewhere in this report is as
The number of shareholders, by size of holding, in each class are:
Substantial shareholders
Ordinary shareholders
Fully paid
Number
%
Mithril Resources Investments Pty Ltd
9,283,871
7.67%
follows. The information is current as at 25 September 2013.
Independence Group NL
9,027,000
7.46%
Goldsearch Ltd
8,673,000
7.17%
Distribution of equity securities
Number of
shareholders
Unlisted
Options
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
8
46
257
696
163
1,170
-
-
-
2
14
16
Ordinary share capital
• 121,000,000 fully paid ordinary shares are held by 1,170
Fully Paid Ordinary
Shares
Ordinary shareholders
Number
%
Mithril Resources Investments Pty Ltd
9,283,871
7.67%
Independence Group NL
9,027,000
7.46%
Goldsearch Ltd
8,673,000
7.17%
Barrick (Australia Pacific) Limited
6,000,000
4.96%
Integra Mining Limited
5,516,129
4.56%
Argonaut Resources NL
2,500,000
2.07%
Kimbriki Nominees Pty Ltd
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