Australian gold explorer Musgrave Minerals (ASX:MGV) has confirmed gold grades of up to 676g/t Au through grade control drilling at its flagship Cue Gold Project in Western Australia.
The $192.14 million market capitalisation company reports grade control drilling on the Starlight Lode at the Break of Day deposit represents the final drilling stage before permitting, approvals, and further development studies.
Some ‘significant’ new intersections recorded include 23MORC208 with 19 @ 112g/t Au from 27m, including 3m @ 676g/t Au from 31m; 23MORC205 with 28m @ 68.5g/t Au from 21m, including 4m @ 410.6g/t Au from 34m; and 23MORC204 with 16m @ 78.5g/t Au from 28m, including 2m @ 520.8g/t Au from 31m.
Musgrave reports this grade control drilling will provide increased confidence in the resource, enable a future resource update, and de-risk the development of the project. The company also says this is the first part of a larger grade control program, with additional drilling on the Twilight and Velvet lodes at Break of Day and the White Heat deposit also completed, with assays pending.
Musgrave also began reverse circulation (RC) drilling to test new regional ‘high-priority’ exploration targets in late July, with assays expected in early September. Further soil geochemical sampling work will be completed in August over ‘high-priority’ targets at the Mt Magnet South Project.
Commenting on the drilling, Musgrave Minerals Managing Director Rob Waugh says: “Following the strong financial metrics of the stage one Prefeasibility Study (PFS) in April 2023, the company has focused on extending mine life through exploration drilling, converting inferred resources within the confines of the stage one PFS mining envelopes, as well as grade control drilling to de-risk the initial stages of open pit development.
“The results support … previous data and continue to highlight the very high-grade, near-surface nature of the Break of Day gold system.”
Grade control drilling is aligned to this strategy. These infill grade control drilling results from the Starlight Lode at Break of Day focus on the early months of development to provide added certainty in forecasting and scheduling of future gold production. The results support, and are aligned with, previous data and continue to highlight the very high-grade, near-surface nature of the Break of Day gold system.”
Musgrave Minerals is a Perth-based gold explorer focused on its portfolio of gold and base metals projects in Australia. These assets include the Cue and Mt Magnet South projects in Western Australia, along with several tenement applications in the Musgrave Province of South Australia.
On 13 July 2023, the company released a target’s statement in response to an off-the-market takeover bid by Ramelius Resources (ASX:RMS) through its subsidiary, Mt Magnet Gold.
Under the bid implementation deed, Ramelius offered to acquire all Musgrave’s shares by offering Musgrave shareholders a single Ramelius share for every 4.21 Musgrave shares held at $0.04 in cash. Musgrave’s directors unanimously recommended its shareholders accept the offer in the absence of a superior proposal.
According to its latest quarterly report published on 28 July 2023, Musgrave had $8.76 million cash at hand as of 30 June 2023.
Write to Harry Mulholland at Mining.com.au
Images: Musgrave Minerals Ltd