The Musgrave region is an area extending from South Australia into Western Australia and the Northern Territory. The region has formed at the convergence of three ancient continental plates, which occurred over a billion years ago. The Burning Heart- The Musgrave Province as described by the Department of Mines and Petroleum, Government of Western Australia.
The Musgrave region is an area extending from South Australia into Western Australia and the Northern Territory. The region has formed at the convergence of three ancient continental plates, which occurred over a billion years ago. This convergence led to a period of volcanic activity in the area, which amongst other geological events, led to a geology and mineralisation that has been incredibly attractive for mining exploration companies.
The region now holds a variety of valuable minerals, which has seen a plethora of mining and exploration companies flock to the area.
Whilst, the region is known to host gemstones such as opals, diamonds, and rubies, it is the vast quantities of metallic ores that is primarily causing the influx of miners; who are targeting economic quantities of commodities such as nickel, copper, cobalt, gold, and platinum group elements.
This makes the Musgrave region a potentially important region for 21st century commodities. Demand for the metals copper, cobalt, and nickel is forecast to expand substantially over the next few decades, due to their use in many high-tech and digital technologies.
For example, according to metals giant Glencore, if electric vehicles can reach 10 percent penetration, global nickel production would have to increase 16 percent beyond current levels to meet demand; copper and cobalt production would have to increase substantially as well.
There have been a number of large and significant discoveries in the region recently, such as the Wingellina Project, held by Metals X. As well as The Nebo-Babel project, a joint venture between OZ Minerals and Cassini Resources, which is the largest nickel-sulphide discovery of the past 25 years.
Additionally, there are many other miners conducting exploration in the region, seeking to make similar discoveries. Plenty of these explorers have also achieved some pretty promising initial results.
One of these explorers is Redstone Resources (ASX: RDS), who’s owned Western Musgrave project covers 237 square kilometres of highly prospective, under-explored ground. Their project lies just 40km to the east of the Nebo-Babel project. They have already proved reserves of than 38,000 tonnes of copper, and are confident that future drilling can define further copper mineralisation.
Of additional enthusiasm for Redstone, an airborne electromagnetic survey of their tenements last year identified eleven conductive EM anomalies. When the first of these was drilled it revealed substantial sulphide mineralisation, an encouraging sign that led to the remaining 10 anomalies being upgraded to immediate drill targets.
With a sizeable land holding, and a low market cap of around $AU4.5 Million, Redstone Resources looks to be an attractive vehicle for investors to gain an exposure to prospective tenements in the Musgrave region.