Musgrave Minerals hits high-grade gold at a new target within the Cue project

by Leena Thomas
Image: Musgrave Minerals Ltd

Musgrave Minerals Ltd (ASX: MGV) has announced high-grade assay results of up to 2m at 30.9 g/t from the first 49 aircore/reverse circulation drill holes of the regional program at its flagship Cue Gold Project in Western Australia.

The company said that the regional drilling program targeting Starlight analogues at Cue intersected high-grade gold at a new target 400m south of Starlight.

MGV reported that a single aircore/RC traverse across a new regional target (Target 2) intersected 5m @ 13.4g/t Au from 28m including 2m @ 30.9g/t Au from 28m; and 8m @ 8.4g/t Au from 41m including 4m @ 15.4g/t Au from 44m. The company said that there is no historical drilling in this area which is concealed by 2-3m of transported hardpan clays.

The company said that this new zone is highly encouraging and highlights the potential for Starlight repeats along strike. MGV said that follow-up drilling is currently being planned. MGV said that the regional, first pass drill testing of Starlight analogue targets within the belt is continuing.

Cue project

Cue Project is located in the Murchison district of Western Australia. The project consists of the Moyagee Gold and Hollandaire Copper areas in the highly prospective Murchison province of Western Australia.

The Cue Gold Project hosts total resources of 6.45Mt @ 3.0g/t Au for 613koz including the Break of Day deposit (868Kt @ 7.2g/t Au for 199koz contained gold) and the Lena deposit (4,3Mt @ 2.3g/t Au for 325koz contained gold) located 130m to the west.

Musgrave had executed an $18 million Earn-in and Exploration Joint Venture with Evolution Mining Ltd over the Lake Austin portion of the Cue Project, called the Evolution JV.

Important areas of Cue project include Break of Day prospect, Lena gold resources, Mainland, and the Lake Austin North gold discovery. The Starlight and White Light gold lodes are located at Break of Day.

The Break of Day, Starlight, and Lena prospects are located on granted mining lease M21/106 and the primary tenement holder is Musgrave Minerals Ltd.

Regional program at Cue

The company had recently commenced a regional program at its flagship Cue Gold Project in Western Australia’s Murchison district.

MGV said that the program is testing for new Starlight analogue targets on trend with the new high-grade Starlight gold discovery at the Break of Day deposit.

The company said that the program is testing targets derived from geophysical, geochemical, and geological data and is focused on the potential for high-grade gold mineralisation on structures cross-cutting stratigraphy similar to that seen at Starlight.

The company announced that this regional aircore/RC drill program to test for Starlight analogues in the belt is progressing well and has been extended to >17,000m.

21 initial targets

The company said that a single traverse of drill holes, spaced at 20m intervals was planned as a first pass to test an initial 21 targets. To date, an estimated 12,000m of drilling over 16, of a planned 21 targets has been completed.

MGV said that to date a total of 220 aircore/RC holes have been completed in the regional program. The company reported that assays were received for 49 holes across five targets. Further assays are expected in coming weeks.

High-grade gold intersected at Target 2

Musgrave said that the Target 2 of the current regional program, located 400m south of Starlight has intersected high-grade gold near surface in two adjacent holes. The company said that the mineralisation is blind from surface, hidden below 2-3m of transported hardpan clays, and is open along strike and down dip.

Significant new intercepts over Target 2 include 9m @ 7.6g/t Au from 27m (20MUAC008) including 5m @ 13.4g/t Au from 28m including 2m @ 30.9g/t Au from 28m; and 14m @ 5.0g/t Au from 37m to end of hole (20MUAC009) including 8m @ 8.4g/t Au from 41m including 4m @ 15.4g/t Au from 44m.

MGV reported that the two aircore drill holes (20MUAC008 and 20MUAC009) are collared 20m apart and were extended into fresh rock with RC hammer. The company said that additional follow-up drilling will be required to define the strike and depth extent of this new mineralised position.

Drilling at Targets 1, 3, and 7

Musgrave said that the drilling at targets 1, 3, and 7 returned anomalous gold results in the regolith (weathered zone). The company said that further assessment would be required before follow-up drilling is scheduled.

Updated resource estimate in October

The company announced that the updated resource estimate incorporating the results from the new Starlight and White Light gold discoveries is scheduled for October, 2020.

The current resource estimate for the Cue Gold Project totals 6.45Mt @ 3.0g/t Au for 613koz including the Break of Day deposit and the Lena deposit.

Latest updates and next steps

The company said that the follow-up drilling of this new high-grade target zone 400m to the south of Starlight is currently being planned and is expected to commence in late October.

MGV said that further drilling to test the possible new lode 100m to the south of White Light announced on 28 September is scheduled for November; while the Break of Day resource update including the Starlight and White Light lodes is scheduled for late October 2020.

The company said that the metallurgical test work is underway at Starlight with results expected in late October.

Musgrave reported that a range of exploration techniques will be considered to progress exploration including additional surface sampling and drilling.

MGV announced that at Evolution JV, the Phase 2 aircore drilling program testing high-priority gold targets on Lake Austin is continuing with approximately 12,000m completed of a planned 21,900m program.

Management statements

Musgrave Managing Director Rob Waugh said: “This is a great start to the regional program. Any significant gold anomalism on these new targets is encouraging but to get these high-grades from this reconnaissance program is a very exciting result. We’re currently planning further follow-up drilling to commence in late October.”