Musgrave Province Project

Summary

•  PepinNini has a 100% interest in three granted exploration licence and two exploration licence applications covering approximately 8,143 sq. kms of the Musgrave Province of South Australia.

• Unlike other Australian Proterozoic Blocks, such as Broken Hill, Mt Isa, Granites Tanami and Tennent Creek, the Musgrave Block has not been subject to modern exploration techniques. As a consequence the mineral prospectivity has been preserved and presents an exciting exploration opportunity.

• Prospective targets for mineralisation have been identified in all five tenements held by PepinNini. Radiometric and gravity data indicate large outcropping or relatively shallow ultrabasic intrusions of the Giles Complex are evident in each of three granted tenements and represent priority exploration targets for nickel copper sulphide mineralisation with associated cobalt, gold and platinum group metals.

• Detailed geophysical data including airborne EM data flown by Rio Tinto Ltd over approximately 160 square kilometres in areas held by PepinNini has indicated conductive bodies in a mapped troctolitic anorthosite intrusion representing a priority target for nickel copper sulphide mineralisation based on the Voisey’s Bay model.

• Sulphide bearing ultrabasic rocks were intersected in boreholes drilled by the South Australian Department of Mines during 2002 in EL3368. Elevated levels of nickel, copper, platinum, palladium and gold were assayed in samples taken from surface to 28 metres depth in one borehole. The boreholes were located in the vicinity of an interpreted large layered ultrabasic intrusive (10 kilometre diameter) identified from regional geophysical data.

• Pentlandite and chalco-pendlandite have been identified in a surface sample collected during a field reconnaissance survey conducted in the vicinity of the Mt Caroline tenement EL 4048 by the South Australian Department of Mines during October/November, 2004.

Recent exploration by PepinNini has been focused on the investigation of two prominent magnetic features  located near Mt Moulden and Mt Harcus within EL 3368 which are interpreted as representing ultramafic/mafic intrusions and are considered to be prospective for nickel copper sulphide mineralisation similar to that at Voisey’s Bay in Canada.

A helicopter HoisTEM survey was completed between late September and mid November, 2005 with 1,378 line kilometres being flown across the Mt Moulden magnetic feature and 1,407 line kilometres at the Mt Harcus feature.

A ground TEM survey was also completed at Mt Moulden and Mt Harcus between late September, and mid November 2005. Overall a total of 806 stations of inloop TEM data were acquired comprising 71.3 line kms on 23 lines.

Field reconnaissance surveys have also been undertaken and included field mapping and geochemical sampling.

A total of 3,111 metres of RC drilling in 21 boreholes was undertaken in April/May, 2006 to test a variety of geological, geophysical and geochemical targets within the Mt Harcus and Mt Moulden project areas of EL3368. Sulphide-bearing mafic/ultramafic rocks with concentration of nickel and copper mineralisation were intersected confirming the geological environment exists for the potential development and accumulation of Voisey’s Bay style mineralisation at the Mt Harcus prospect.

The presence of mixed sulphide mineralisation assaying up to 0.46% Cu and 0.13% Ni provides encouragement that the Harcus Intrusion could host significant nickel-copper sulphide mineralisation. The discovery of sulphide mineralisation provides a focus for further intensive exploration activities and encouragement that proximal targets and other intrusions may also contain sulphide mineralisation.

Extensive ground magnetic surveying and soil auger sampling was undertaken during November 2006 over the 7 km length of the Harcus layered mafic/ultramafic intrusion. The magnetic data has provided improved resolution of the contacts and varied internal features of the intrusion and the soil geochemistry has highlighted a significant section of the intrusion where copper and nickel geochemistry is anomalous. A broad coherent zone of anomalous copper and nickel in soil has been identified covering approximately 1.4km of the 7km long Intrusion. The anomalous zone is an average 250-300m in width and represents a large and easily accessible target within the intrusion that is potentially related to massive nickel-copper sulphide mineralisation.

Detail gravity surveying was undertaken across three prospect areas within EL3368 during May and June 2007. At the Moulden NE Prospect a very strong gravity gradient of >36 mGals was identified across an 11km long profile. The data suggests a large dense and deeply seated bedrock source. Processing and filtering of the data has identified three distinct gravity anomalies within the survey area. Gravity Surveying across the Harcus Prospect identified a significant >6mGal gravity anomaly coincident with the mapped mafic intrusion and magnetic anomaly. The gravity data indicates a significant body of contrasting high density rocks which have not been encountered during the drilling to date. Gravity surveying across the Harcus NW Prospect has identified a discrete 3 mGal anomaly approximately 1km in diameter which is coincident with a strong negative magnetic feature interpreted as Giles Complex Intrusive rocks and a probable bedrock EM conductor detected by ground EM surveying in 2006.

PepinNini Minerals is currently undertaking exploration programs designed to target Nickel Copper Sulphide mineralisation in three granted exploration licences covering approximately 4,905 sq. kms of the Musgrave Province of South Australia.
Exploration Licence EL3368 - Mt Harcus
Drilling operations recommenced at the Harcus Intrusion on 6th February, 2008 targeting Voisey’s Bay style magmatic nickel-copper sulphide mineralisation. Borehole DD07HAR008 has been extended to a depth of 410metres and borehole DD08HAR009 located at the northern extremity of the 7 kilometre long intrusion has been completed to a depth of 420 metres. The Company owned diamond drill rig has been moved to the Moulden NE Prospect to test three gravity targets that were identified by surveying in May 2007.
Borehole DD07HAR008 intersected variable quantities of massive and disseminated sulphide mineralisation with the most concentrated sulphide intervals occuring between the depths of 211 metres and 225metres. The intersection of massive sulphides grading up to 0.3% nickel and 0.3% copper is encouraging and confirms the potential for concentrated accumulations of mineralisation.

Exploration Licence EL4048 – Mt Caroline
EL4048 covering approximately 1,916 km² was granted to PepinNini Minerals on 25th February, 2008. The Caroline Intrusion is a large layered mafic/ultramafic intrusion belonging to the Giles Complex with potential for significant nickel copper sulphide mineralisation and platinum group metals similar to the Voisey’s Bay and Platreef styles of mineralisation and will be the initial target investigated by the Company within the Mt Caroline tenement.
Airborne EM (Tempest) covering part of the Caroline Intrusion reveals shallow bedrock conductors possibly representing sulphide mineralisation in the ultrabasic Giles Complex. Four discrete magnetic targets interpreted to represent concealed mafic-ultramafic bodies and one magnetic ring feature interpreted to represent a possible kimberlite target are also proposed to be investigated by drilling.
A drilling program of 11 boreholes is proposed commence in early June following the completion of the current drilling program within EL 3368. At least six boreholes comprising more than 1,500 metres of core drilling designed to provide stratigraphic information from concealed basement rocks and to investigate magnetic, electro-magnetic and gravity features associated with the Caroline Intrusion will be undertaken as part of a collaborative PACE funding program with the South Australian Government.
Exploration Licence EL3536 – Pine Ridge
A reconnaissance and mapping survey including geochemical sampling of significant parts of the Pine Ridge tenement as well as an extensive program of shallow drill holes primarily undertaken along existing tracks and fences is scheduled to commence following the completion of heritage clearance surveys by traditional owners during March, 2008. The project will also include reassessment followed by investigation by drilling of five nickel copper prospects “Kenmore 1”, “Kenmore 2”, “South Bank”, “Eremorphila” and “Aidan Walking”.previously identified by Department of Mines and Rio Tinto.

Mt Harcus :: Nickle Copper Sulphide Target :: E3368 :: Musgrave Province

Mt Moulden :: Nickel Copper :: Sulphide Target :: EL 3368 :: Musgrave Province

The Musgrave Province is a large, under-explored Proterozoic Block with a diversity of geological environments located in the north-west corner of South Australia extending across the border into the Northern Territory and Western Australia.  Proterozoic Blocks represent some of the most prospective terrain for mineral exploration in Australia and include the well known mineral provinces of the Mount Isa Inlier, Broken Hill, the Granites Tanami Block, the Gascoyne Complex and the Tennent Creek Inlier.

Demonstrated potential exists within the Musgrave Province of South Australia for base metals (copper, lead, zinc), ferrous metals (chromium, nickel, vanadium, titanium) and uranium.  Potential also exists for precious metals (platinum group metals, gold, silver), precious stones (diamonds, rubies), heavy mineral sands and rare earths.

The prospectivity of Proterozoic rocks is well recognised and, with the exception of those contained within the Musgrave Province, have generally been subject to relatively intense exploration for a considerable period of time yielding a number of world class mineral deposits. Australian Proterozoic hosted world-class mineral deposits include:

• Olympic Dam (Cu, Au, U)                                McArthur River/HYC (Pb, Zn, Ag)
• Broken Hill (Pb, Zn, Ag)                                  Telfer (Au)
• Mt Isa (Cu, Pb, Zn, Ag)                                   Alligator River Field (U, Au, platinoids)
• Hilton (Pb, Zn, Ag)                                          Argyle AK1 (diamonds)
• Cannington (Pb, Zn, Ag)                                 Hamersley Basin (Fe)
• Century (Zn, Pb, Ag)

Recent exploration results from the region suggest that the Musgrave Province may very well be host to Australia’s next significant Proterozoic orebody discovery.

A recently completed regional interpretation of airborne magnetic data commissioned by PIRSA and Rio Tinto considers the Caroline Intrusive, the majority of which is located in ELA 117/96, “to have the highest potential for hosting significant NiS mineralisation."  PepinNini Minerals Limited has received data from an airborne EM (Tempest) survey flown by Rio Tinto over portion of ELA 117/96 which covers part of the Caroline Intrusion. Shallow bedrock conductors possibly representing sulphide mineralisation in the ultrabasic Giles Complex have been identified from this data. Pentlandite and chalco-pentlandite have been identified in a surface sample collected from the area.