Lake Austin Westcore Drilling

Musgrave hits high-grade gold at West Island target on Lake Austin

Musgrave Minerals Ltd (ASX: MGV) has intersected ‘significant’ gold mineralisation from the first 4 diamond drill holes testing part of a 7km long aircore anomaly at the West Island target on Lake Austin (part of the Cue JV with Evolution Mining in WA).

Standout results from the 4 DD holes are shown below.

  • MGV’s diamond drilling results from the West Island target on Lake Austin have identified a new high-grade basement gold zone over a strike of 400m that remains open to the north, south, and at depth.
  • Evolution has now committed more funds on the Cue JV following the high-grade results from early diamond drilling. Evolution has committed to a further A$5 million towards exploration drilling on the joint venture ground over the next 12 months. The exploration would focus on more than 7,000m of additional diamond drilling at West Island and other basement targets, together with a further 25,000m of AC drilling to define new targets utilising knowledge developed from the work to date.
  • Follow-up diamond drilling is scheduled to commence in early July.

Cue project

The Cue project is located in the Murchison District of Western Australia.

Cue Evolution JV

In late 2019, Musgrave entered into an earn-in and joint venture exploration agreement with Evolution Mining over a select area of Lake Austin and surrounds on the Cue Project. Evolution stands to earn a 75% interest in the JV area by sole funding A$18 million in exploration costs over a five-year term. To date, Evolution has spent $4.6 million.

The Evolution JV excludes all current resources at Cue (including the Lena and Break of Day deposits), the new White Heat and Big Sky discoveries, and the Mainland option area.

AC drilling

Under the Evolution Joint Venture, two phases of regional AC drilling were completed on Lake Austin, comprising 436 holes for 48,895m.

Diamond drilling

The AC drilling defined basement targets for a focused 2,720m, 7-hole diamond drilling program which was completed in May 2021 and tested two regional gold targets – West Island and Austin North.

Three diamond holes (21MODD003, 21MODD004, and 21MODD005) were drilled at Austin North, while four diamond holes (21MODD001, 21MODD002, 21MODD006, and 21MODD007) were drilled at West Island over a strike length of 400m, whose results have now been reported.

Cross section of the West Island prospect displaying diamond drill hole 21MODD001
Cross section of the West Island prospect displaying diamond drill hole 21MODD001

Next steps

At the Evolution JV area, MGV is currently integrating the results with existing datasets to define final targets for the new diamond drilling program scheduled to commence in early July. Further AC drilling is scheduled for late July. The company is considering a range of exploration techniques to progress exploration including additional drilling.

For MGV’s 100%-owned tenements, ongoing works include:

  • Follow-up RC drilling to define regolith and basement gold mineralisation at the new Big Sky prospect, with ~80 holes completed to date. Further assay results are expected in mid-July.
  • Follow-up RC drilling to define the basement source of gold anomalism at Target 14, with first assay results expected in mid-July. One-metre resamples from six-metre composite samples of approximately 40 RC drill holes from Big Sky and Target 14 are expected in early August.
  • Works to progress the pre-feasibility level studies at Break of Day and Lena with additional diamond drilling for metallurgical and geotechnical test work underway.

This is a great early result from diamond drilling and a strong endorsement of the joint venture program on Lake Austin”

Management comments

Musgrave Managing Director Rob Waugh said: “This is a great early result from diamond drilling and a strong endorsement of the joint venture program on Lake Austin. We are looking forward to the re-commencement of diamond drilling in July to further test the extent and grade of the gold system at West Island. Evolution’s ongoing commitment is a strong affirmation of the upside potential of the project.”

Images: Musgrave Minerals Ltd
Written By Jonathan Norris
Jonathan is a founder of and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.