Murchison Copper Gold Project

Location

The Murchison Copper Gold Project, comprising the Cue and Nanadie Well Copper Projects, is in the eastern Murchison region of Western Australia, ~20km east of Cue and ~75km southeast of Meekatharra.

History

Mineralised sulphide gossans were detected as far back as the early 1970s at the Cue Copper Project. Subsequent exploration by Westgold Resources and Tectonic Resources from the 1980s to 2007 focused on gold. Hollandaire, the primary copper orebody at the Cue Copper Project, was discovered in 2011 by Silver Lake Resources. Musgrave Minerals (ASX:MGV) progressed via an earn-in joint venture arrangement with Silver Lake to 100% ownership of the Cue Copper Project tenements in August 2017. In June 2019 Musgrave Minerals granted Cyprium an option to earn-in and joint venture for an 80% interest in the non-gold rights over the Project (ARX ASX Announcement – ARX Completes the Acquisition of Cyprium Australia Pty Ltd, 17 June 2019). Cyprium has satisfied the expenditure commitments of the joint venture terms and currently owns 80% of the Cue Copper Project.

The tenements comprising the Nanadie Well Copper Project have a long history of intermittent exploration efforts dating back to the 1980s. Horizon Minerals, formerly known as Intermin Resources, most recently owned the Project from 2005 up until Cyprium’s acquisition. During Horizon’s ownership, Mithril Resources undertook an earn-in joint-venture between 2013-2019 before ultimately withdrawing from the project. Cyprium acquired 100% of the Nanadie Well Copper Project in July 2020, from Horizon Minerals (CYM ASX Announcement – Nanadie Well Copper Project Acquisition, 14 July 2020).

Status

The current Resource at Hollandaire in combination with the historical Resource estimate at Nanadie Well, demonstrates the potential to support copper production. Cyprium is conducting extensional and infill drilling to grow the known deposit for inclusion in a scoping study. Of note, metallurgical testwork to date on mineralisation from Hollandaire and Nanadie Well indicates strong potential for the ore to be amenable to heap leach processing techniques.

JORC Resources

The Nanadie Well Copper Gold project has a 2004 JORC compliant Mineral Resource. Refer to 14th July 2020 ASX Announcement –
Nanadie Well Copper Project Acquisition

Table 3: Hollandaire Mineral Resource estimate as at 29 September 2020.

Resource Category Material type Volume Tonnes Cu % Cu Tonnes Au g/t Au Ounces Ag g/t Ag Ounces
Indicated Oxide 5,000 10,000 1.20 100 0.09 0 4.16 1,300
Transitional 95,000 275,000 1.80 5,000 0.24 2,100 5.06 44,700
Fresh 638,000 1,894,000 2.00 37,100 0.31 18,900 6.64 404,400
Sub Total 738,000 2,179,000 2.00 42,200 0.30 21,000 6.43 450,400
Inferred Transitional 4,000 12,000 0.40 0 0.02 0 0.98 400
Fresh 194,000 593,000 1.60 9,300 0.41 7,800 6.46 123,200
Sub Total 198,000 605,000 1.60 9,300 0.40 7,800 6.35 123,600
TOTAL 936,000 2,784,000 1.90 51,500 0.32 28,800 6.41 574,000
  1. Ore tonnes are reported as million tonnes (Mt) and rounded to nearest 10,000; Cu tonnes are rounded to nearest 1,00 tonnes; Au ounces are rounded to the nearest 100 ounces; Ag ounces are rounded to the nearest 100 ounces
  2. Nominal cut-off at 0.3% Cu
  3. Resource is reported on a 100% basis; Cyprium has an 80% attributable interest in Hollandaire
  4. Gold mineralisation not associated with the copper resource that is 100% attributable to MGV, has not been modelled or reported in the Hollandaire 2012 JORC Mineral Resource estimate