Cue Copper Project (earn-in for 80% interest)

Highlights include:

  • The initial Mineral Resource into the strategy
  • Originally explored by Silver Lake Resources who discovered Hollandaire in 2011
  • Minimal base metals exploration undertaken by Musgrave Minerals as they are focused on gold
  • Option to acquire the base metals rights over the tenements with existing Resources
  • Initial review of mineralogy is favourable to sulphide heap leach
  • A number of high priority targets to increase existing Mineral Resource
  • Existing Mineral Resource remains open in multiple directions

Hollandaire Overview

The Hollandaire deposit represents a significant occurrence of copper mineralisation with minor associated gold and silver.   Hollandaire is a tabular stratabound felsites hosted VMS deposit.  The felsite is hosted within a thick sequence of mafic rocks which show typical packages of chlorite and silica alteration similar to other known VMS deposits. The mineralisation forms a moderately dipping zone of massive sulphide 10-15m thick which plunges to the south west.  Mineralisation is dominantly supergene chalcocite in the oxidised zones and chalcopyrite in the primary zone.  The deposit is underlain in part with disseminated sulphides and a semi-concordant stockwork of sulphide and silicate veining.

The current resource demonstrates potential to be extended by further drilling with mineralogy indicating strong potential for the ore to be leachable.

Further geological and metallurgical assessments are on-going and will aid with the expansion of the resource and the commencement of feasibility studies.

Hollandaire Resource

  • Hollandaire was discovered in 2011 by Silver Lake Resources
  • A follow up drill campaign led to a maiden Resource Estimate of 2.8mt @1.6% Cu, 0.4g/t Au
  • Current Indicated Resource of 1.9Mt @ 2.0% Cu
  • Best intercepts include:
    • 9m @ 15.4% Cu, 2.0g/t Au
    • 12m @ 8.7% Cu (incl. 5m @3.1g/t Au)
    • 12m @ 8.1% Cu (incl. 5m @2.2g/t Au)
    • 10m @ 8.8% Cu, 2.8g/t Au

Hollandaire West

  • Long section showing proposed resource extension drill holes
  • Mineralisation is open in all directions
  • Minimal drilling despite encouraging drill intercepts:
    • 10m @ 3.3% Cu, 0.3g/t Au
    • 12m @ 4.2% Cu, 0.2g/t Au
    • 45m @ 1.5% Cu, 0.1g/t Au
    • 5m @ 4.5% Cu, 0.1g/t Au

Cue Copper Mineral Resources

Copper Mineral Resources as at 30 June 2015

Indicated Resources

Inferred Resources

Total Resources

Deposit

Ore
Tonnes
'000s

Grade
%

Total
Tonnes
Cu
'000s

Ore
Tonnes
'000s

Grade
%

Total
Tonnes
Cu
'000s

Ore
Tonnes
'000s

Grade
%

Total
Tonnes
Cu
'000s

Hollandaire
Copper

 
1,891.3

 
2.0

 
37.1

 
122.4

 
1.4

 
1.7

 
2,013.7

 
1.9

 
38.8

  • Hollandaire is a VMS deposit, a style of base metal mineralisation that frequently occurs in clusters along favourable geological horizons
  • The Cue area has favourable geological sequences to host further VMS deposits – previous operators Silver Lake Resources identified several prospects, potentially being further base metal VMS occurrences
  • Cyprium plans to immediately drill test Hollandaire extensions and regional targets

Mount Eelya

  • Mt Eelya cross-section showing drillhole intersections and interpreted gossan/sulphide relationships
  • Mt Eelya 3D block diagram showing drill holes, significant intersections, gossans, VTEM conductors and DHEM targets
  • Best Intercepts of:
    • 7m @ 9.9% Zn, 1.2% Cu, 0.3g/t Au
    • 8m@ 1.6% Cu, 0.6g/t Au
    • 7m @ 9.3% Zn, 1.1% Cu, 11.3g/t Ag
    • 16m @3.1% Zn, 0.2% Cu
      incl. 2m @18.1% Zn, 0.5% Cu

Exploration Potential

  • Tenements considered highly prospective for further mineralisation (24 priority targets)
  • Potential to significantly increase Mineral Resources
  • Ongoing review of regional tenements to add to Mineral Resources:
    • Non-core assets of gold producers and explorers
    • Non-core assets of specialty minerals
    • Cash strapped juniors
    • Non-core tenement positions

Cue Exploration History

  • Copper mineralised sulphide gossan’s detected in early 1970s
  • Westgold Resources and Tectonic Resources undertook early exploration from 1980s to 2007
    • More focussed on gold exploration
  • Silver Lake Resources acquired the project from Tectonic Resources in 2007
    • Focussed on gold but did include multi element geochemistry that identified the Hollandaire prospect
    • Commenced air-core drilling and discovered Hollandaire in 2011
    • Resource definition drilling undertaken and a resource estimate generated late 2012
  • Musgrave Minerals acquired the project in late 2015 and commenced fieldwork in 2016
  • Musgrave Minerals focussed on gold exploration success to the south and optioned the copper rights to Cyprium Metals in early 2019
  • Initial work by Musgrave focussed on electromagnetic re-interpretation and drilling at Hunky Dory, Mt Eelya and extensional work at Hollandaire
  • Significantly the first hole at Mt Eelya intersected 8 metres of massive sulphides at 1.6% Cu. A subsequent hole intersected significant intervals of zinc mineralisation with grades up to 18.1% Zn
  • Last completed work undertaken was surface geophysical moving loop transient electromagnetic survey (MLTEM) over 14 proposed drill sites
  • Previous work to that was the drilling of 12 of 22 reverse circulation drill holes co funded by the WA Government and results included 6 metres of 1.0% Cu, 1.7 g/t Au and 11 g/t Ag from 60 metres down hole at the Colonel Prospect
  • Musgrave subsequently focussed on gold exploration at their Break of Day and Leviticus discoveries to the south and minimal work has been undertaken on the base metals prospects since October 2017
  • Hollandaire extensional drilling to increase the resource base where known resources are open in a number of directions
  • Project review over many prospects that will be prioritised for further investigative field work
  • Geophysics to be conducted on known conductors and downhole copper grade intersections
  • Follow up drilling on previous promising drill results at Hollandaire West and East, Mt Eelya/ Eelya South, Colonel and Colonel East
  • Confirmatory metallurgical testwork on treatment methods for Hollandaire to be undertaken
  • Further broad based exploration methods to be conducted on other identified prospects

Cyprium Exploration Strategy

  • Hollandaire extensional drilling to increase the resource base where known resources are open in a number of directions
  • Project review over many prospects that will be prioritised for further investigative field work
  • Geophysics to be conducted on known conductors and downhole copper grade intersections
  • Follow up drilling on previous promising drill results at Hollandaire West and East, Mt Eelya/ Eelya South, Colonel and Colonel East
  • Confirmatory metallurgical test work on treatment methods for Hollandaire to be undertaken
  • Further broad-based exploration methods to be conducted on other identified prospects

Location of Cue Copper Project in Western Australia

Hollandaire Resource

Hollandaire Resource

Hollandaire Resource

Hollandaire Resource

Hollandaire West

Hollandaire West

Mount Eelya

Mount Eelya

Colonel & Colonel East

Colonel & Colonel East

Exploration Potential