Deposit

Tonnes x103

Zn

(%)

Pb

(%)

Ag

(g/t)

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

Criteria

Explanation

Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Sampling is undertaken using standard industry

practices.

Soil Sampling -80# mesh soil samples (~100g) at a nominal 10cm depth on 100m x 50m grid.

Sampling techniques

Include reference to measures taken to ensure sample

representivity and the appropriate calibration of any

measurement tools or systems used.

Soil sample co-ordinates are in UTM grid (GDA94

Z53) and have been measured by hand-held GPS with an accuracy of ±4 metres.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer,

rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).

United Drilling Services is contracted to undertake RC

(reverse circulation) and Diamond drilling.

Diamond core will be a combination of NQ2 and HQ. Drill core is orientated using a down hole spear and structural measurements recorded in "Geo-calculator" or "Geosoft Target" software program.

Drill sample recovery

Method of recording and assessing core and chip sample

recoveries and results assessed.

Diamond core recoveries are logged and recorded in the

database. RC bulk sample weights are observed and noted.

Drill sample recovery

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Diamond core is reconstructed into continuous intervals

on angle iron racks for orientation and reconciliation against core block markers. Rod and metre counts are routinely carried out by the driller.

Drill sample recovery

Whether a relationship exists between sample recovery and

grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

No sampling yet undertaken for this program.

Logging

Whether core and chip samples have been geologically and

geotechnically logged to a level of detail to support

appropriate Mineral Resource estimation, mining studies and

metallurgical studies.

All geological, structural and alteration related

observations are stored in the database.

Logging

Whether logging is qualitative or quantitative in nature. Core

(or costean, channel, etc) photography.

Logging of lithology, structure, alteration,

mineralisation, colour and other features of 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.

Logging

The total length and percentage of the relevant intersections

logged.

All drill holes are logged in full on completion.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all

core taken.

Diamond core is cut and sampled on geological

intervals. A Diamond core saw is used to cut the core and selected half core intervals are submitted for analysis.

Sub-sampling techniques and sample preparation

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

Soil samples are collected dry and sieved using a -80#

(180 micron). ~100g is collected for analysis.

Sub-sampling techniques and sample preparation

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Drill sample preparation and base metal and precious

metal analysis is undertaken by Intertek Genalysis, in

Wingfield, South Australia. Sample preparation by dry pulverisation to 90% passing 75 micron.

Sub-sampling techniques and sample preparation

Quality control procedures adopted for all sub-sampling stages

to maximise representivity of samples.

Field QC procedures involve the use of certified

reference standards, duplicates and blanks at appropriate intervals.

Sub-sampling techniques and sample preparation

Measures taken to ensure that the sampling is representative

of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Sampling will be carried out using MGV protocols and

QAQC procedures as per industry best practice. Duplicate ¼ core samples are inserted and routinely checked against originals.

Standards are inserted at 1 in 50 samples.

Soil samples duplicates are inserted at 1 in 25 samples.

Sub-sampling techniques and sample preparation

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample sizes are considered appropriate for the

commodities and elements explored and analysed for.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Drill sample analysis is undertaken by Intertek

Genalysis, in Wingfield, South Australia, multi element analysis by four acid total digest (hydrochloric, nitric,

perchloric and hydrofluoric acid) and ICP-OES and

ICP-MS to acceptable detection limits. Analysis for a total of 34 elements is recorded.

Soil sample analysis is undertaken by Intertek Genalysis

Perth.

Internal certified laboratory QAQC is undertaken including check samples, blanks and internal standards. Samples area analysed using Intertek's proprietary Terra Leach (TL1) partial leach method (ICP-MS & ICP-OES) for Ag, Au, As, Bi, Cd, Co, Cu, La, Mo, Ni, Pb, Pd, Pt, Sb, Sn, Th, U, W and Zn.

For geophysical tools, spectrometers, handheld XRF

instruments, etc, the parameters used in determining the

analysis including instrument make and model, reading times,

calibrations factors applied and their derivation, etc.

No geophysical tools were used to estimate mineral or

element percentages.

Nature of quality control procedures adopted (eg standards,

blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

In addition to MGV standards, duplicates and blanks,

Genalysis will incorporate laboratory QAQC including standards, blanks and repeats as a standard procedure. Certified 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 either independent or alternative company personnel.

At least two company representatives verify significant

intersections including either, the Managing Director, Exploration Manager, Principal Geologist or Senior

Geologist.

Verification of sampling and assaying

The use of twinned holes.

No twin holes have yet been drilled by MGV.

Verification of sampling and assaying

Documentation of primary data, data entry procedures, data

verification, data storage (physical and electronic) protocols.

Primary data is collected using a standard set of Excel

templates on a Toughbook laptop computer using

lookup codes. Geological sample logging is undertaken on one metre intervals for aircore 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 samples is undertaken.

Verification of sampling and assaying

Discuss any adjustment to assay data.

No adjustments or calibrations are made to any assay

data reported by MGV.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar

and down-hole surveys), trenches, mine workings and other

locations used in Mineral Resource estimation.

All maps and locations are in UTM grid (GDA94 Z53)

and have been measured by hand-held GPS with an accuracy of ±4 metres.

Down hole surveys will be undertaken at nominal 30m intervals using a digital down hole camera.

Location of data points

Specification of the grid system used.

Drill hole co-ordinates are in UTM grid (GDA94 Z53)

Location of data points

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 Results.

Variable drill hole spacings are used to adequately test

targets.

Data spacing and distribution

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The mineralisation has not yet been demonstrated to

have sufficient continuity to support the definition of

Mineral Resource and Reserves under the classification applied under the 2012 JORC Code.

Data spacing and distribution

Whether sample compositing has been applied.

No sample compositing has been undertaken on

Diamond core or soil samples.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased

sampling of possible structures and the extent to which this is

known, considering the deposit type.

The precise dip and strike of the mineralisation is not

yet known and it is unclear at this stage whether any sampling has a set bias.

Orientation of data in relation to geological structure

If the relationship between the drilling orientation and the

orientation of key mineralised structures is considered to have

introduced a sampling bias, this should be assessed and reported if material.

No orientation based sampling bias is known at this

time.

Sample security

The measures taken to ensure sample security.

Chain of custody is managed by MGV. Drill samples

will be 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.

Soil Samples are collected in individually numbered

paper packets and packed into card board boxes for transport. MGV staff deliver samples to Intertek Adelaide for dispatch to Intertek laboratory in Perth.

Audits or reviews

The results of any audits or reviews of sampling techniques

and data.

No external audits or reviews of modeling techniques

and data have been undertaken.

Criteria

Explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

All drilling and soil sampling will be within joint

venture tenement EL5039 and EL4813 within the

Menninnie Dam Project area. MGV is earning an initial

51% interest in the project with TZN.

The current targets being drilled on EL5039 and EL4813 and soil samples are within the Nonning Pastoral Lease.

A Part B Agreement has been signed with the Gawler Ranges Native Title Group and current exploration areas cleared for exploration activities.

Mineral tenement and land tenure status

The security of the tenure held at the time of reporting along

with any known impediments to obtaining a licence to operate in the area.

The tenements are in good standing and no known

impediments exist.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Some historical drilling has been undertaken in

different areas on the tenements by MGV and third parties but none is directly relevant to the current targets.

Some previous broader based (400m x 400m) soil

sampling has been done by MGV at these targets.

Geology

Deposit type, geological setting and style of mineralisation.

Geology comprises Proterozoic metasediments that

have been intruded by Hiltaba-suite granitoids and overlain by lower sequences of the Gawler Range Volcanics.

Musgrave is exploring for multi commodity style

deposits consistent with an interpreted porphyry- epithermal type model.

Drill hole

Information

A summary of all information material to 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.

Drill hole information will be reported when drilling is

completed and assays received.

Data aggregation methods

In reporting Exploration Results, weighting averaging

techniques, maximum and/or minimum grade truncations (eg

cutting of high grades) and cut-off grades are usually Material and should be stated.

Drilling has just commenced and results will be

reported once received.

Data aggregation methods

Where aggregate intercepts incorporate short lengths of high grade results and 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.

Drilling has just commenced and results will be

reported once received.

Data aggregation methods

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent values are currently used for

reporting of exploration results.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

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').

Drilling has just commenced and results will be

reported once received.

Diagrams

Appropriate maps and sections (with scales) and tabulations of

intercepts should be 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

Refer to figures in body of this announcement.

sectional views.

Balanced reporting

Where comprehensive reporting of all 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.

Drilling has just commenced and results will be

reported once received.

Other substantive exploration data

Other exploration data, if meaningful and material, should be

reported including (but not limited to): geological observations; 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.

All material results from geochemical and geophysical

surveys and drilling related to these prospects has been reported or discussed.

Gravity data was collected using a CG5 gravity meter and differential GPS at a station spacing of 100x200-

400m.

Further work

The nature and scale of planned further work (eg tests for

lateral extensions or depth extensions or large-scale step-out

drilling).

A range of exploration techniques will be considered to

progress exploration on the completion of the current program.

Further work

Diagrams clearly highlighting the areas of possible extensions,

including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Refer to figures in the body of this announcement.