Annual
Report
2016
Musgrave Minerals is an Australia focused gold and base metal exploration company
Directors
Graham Ascough Non-Executive Chairman Robert Waugh Managing Director
Kelly Ross Non-Executive Director John Percival Non-Executive Director
Company Secretary
Patricia (Trish) Farr
Registered Office & Principal Place of Business
28 Richardson Street West Perth, WA 6005
Telephone: +61 (8) 9324 1061
Facsimile: +61 (8) 9324 1014
Email: [email protected]
Web: www.musgraveminerals.com.au
Auditors
Grant Thornton Audit Pty Ltd Chartered Accountants Level 1, 10 Kings Park Road West Perth, WA 6005
Legal Advisors
O'Loughlins Lawyers Level 2, 99 Frome Street
Adelaide, SA 5000
Share Registry
Computershare Investor Services Pty Ltd Level 11, 172 St. Georges Terrace
Perth, WA 6000
Telephone: +61 (8) 9323 2000
Facsimile: +61 (8) 9323 2033
Securities Exchange Listing
The Company is listed on the Australian Securities Exchange Ltd ("ASX")
Home Exchange: Perth, Western Australia
ASX Code: MGV
i Corporate Directory
01
Chairman's Letter 02
Review of Operations 03
Directors' Report 10
Auditor's Independence Declaration 21
Consolidated Statement of Profit or Loss and Other Comprehensive Income 22
Consolidated Statement of Financial Position 23
Consolidated Statement of Changes in Equity 24
Consolidated Statement of Cash Flows 25
Notes to the Consolidated Financial Statements 26
Directors' Declaration 47
Independent Auditor's Report 48
Additional Information 51
Tenement Schedule 53
Contents 01
Dear Fellow Shareholders,
On behalf of the Board of Directors, it is my pleasure to present the 2016 Annual Report for Musgrave Minerals Limited ('Musgrave' or 'Company').
During the year under review the Company significantly strengthened its project portfolio entering a Farm-In and Joint Venture Agreement to earn up to an 80% interest in the Cue Project. Cue is located in the highly prospective Murchison Province of Western Australia, a well-endowed producing gold district and an emerging, under-explored base metal province. The Project is host to numerous advanced gold
and copper prospects and is well positioned in regards to infrastructure and existing gold operations.
Our initial drilling programs at Cue have been very successful, identifying a new base metal discovery at the Mt Eelya copper-gold Prospect and extending high grade gold mineralisation at the Break of Day Prospect. Significant upside remains for further discoveries in both gold and copper at Cue where the Company will continue to advance targets through discovery and extensional drilling programs with the objective of identifying sufficient resources to underpin a profitable near-term development scenario. In this regard, the Company will continue its focus on Break of Day where drilling to date has confirmed a substantial, multi-vein, high grade gold system that remains untested at depth and along strike.
Despite the continuing challenging times in the resources sector and the unpredictable equity markets in Australia and overseas, Musgrave successfully completed a capital raising subsequent to the end of the year that attracted new investors to the Company. Concurrent with this raising, a Share Purchase Plan offered existing shareholders the
opportunity to acquire further shares in the Company on the same terms as the Placement. The funds will be used to accelerate our efforts at Cue in the year ahead. It was very pleasing to see strong participation in the SPP from existing shareholders and I take this opportunity, on behalf of the Board, to thank all of our shareholders for their ongoing support.
The Company's share price performance has improved significantly over the past twelve months and this is a reflection of the quality work and dedication of the Musgrave team and reflects on the solid exploration results they have delivered over the past twelve months. It is a trend that
we intend to continue and I would like to thank the staff, management, contractors and my fellow directors for their ongoing efforts in this regard.
We are committed to progressing the Company by advancing targets towards development through high-quality exploration and technical studies for the benefit of all Musgrave shareholders.
Once again I wish to thank all shareholders for your continued support.
Graham Ascough
Chairman
02 Chairman's Letter