Musgrave Minerals Ltd (ASX: MGV) has announced a highly encouraging resource update at its Lena gold deposit on Cue Gold Project in Western Australia.
The company reported that the Lena Mineral Resource (Indicated and Inferred) within Musgrave’s Cue Gold Project has grown significantly to 4.3Mt @ 2.3g/t gold for 325,000 ounces of contained gold.
MGV said that the updated Lena resource delivered a 112% increase (172,000 ounces gold) in total contained ounces, up from the previous 2017 Mineral Resource; 72% increase in Indicated Resources to 121,000 ounces gold; and 28% increase in gold grade to 2.3g/t Au.
The Lena deposit remains open down dip and there is scope to further grow the resource
The company announced that the total Cue Gold Project Mineral Resource (Indicated and Inferred) increased significantly to 6.45Mt @ 3.0g/t gold for 613,000 ounces of contained gold.
MGV reported that the drilling is underway at Break of Day and Mainland with a focus on further resource growth and making new gold discoveries.
Cue project
Musgrave’s flagship 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.
Important areas of Cue project include Break of Day prospect, Lena gold resources, Mainland, and the new Lake Austin North gold discovery.
Lena deposit
The Lena deposit is located approximately 130m west of Break of Day.
The Mineral Resource at Lena extends over a strike length of more than 1,500m with the southern lode resource estimated to a maximum depth of 280m. Mineralisation at Lena is developed in the Lena Shear which is a splay off the Cuddingwarra Shear Zone.
The resource on the main lodes in the northern part of the deposit is estimated to a maximum depth of 430m. The Lena Mineral Resource comprises 16 individual lodes with the majority of the lodes open at depth.
Resource update at Lena
Musgrave has now announced the resource update at its 100% owned Lena gold deposit on the Company’s flagship Cue Gold Project.
RC and DD drilling results incorporated
MGV said that resource update incorporated the results of highly successful reverse circulation (RC) and diamond drilling programs completed over the past six months.
The company reported that the drilling at Lena extends to a maximum depth of 400m below surface. MGV said that the mineralisation has been interpreted and estimated to a depth of 430m and the mineralisation remains open over much of the 1.5km strike length of the deposit.
Mineral resource more than doubles for Lena
Musgrave announced that the total Indicated and Inferred Mineral Resources for the Lena deposit now stands at 4.3Mt @ 2.3g/t Au for 325,000 ounces of contained gold.
The company reported that Mineral Resource for the Lena deposit has increased substantially since the last estimate in 2017.
MGV said that since the previous Mineral Resource estimate published in July 2017, the Company has added 172,000 ounces of gold, increasing the Mineral Resources at Lena by 112% and improving the overall grade of the deposit by 28% to 2.3g/t gold.
MGV noted that this increase is due to the greater depth extent of the current model, a number of high-grade intersections in the deeper lodes in the recent drilling, and more constrained interpretation methodology to better define the lodes at depth.
Significant increase in Cue project mineral resource
The company announced that the updated total Indicated and Inferred Mineral Resources for the Cue Project, incorporating the Lena and Break of Day deposits and several smaller deposits, now stands at 6.45Mt @ 3.0g/t Au for 613,000 ounces of contained gold. The complete details are as below.
Drilling ongoing at Break of Day
The Company reported that it is currently drilling at Break of Day, which hosts a high-grade resource of 868Kt @ 7.2g/t Au for 199Koz contained gold.
Some of the recent results include significant intercepts including 45m @ 11.8g/t Au related to ‘link lodes’ that have not yet been incorporated into the Break of Day resource.
MGV said that the assays from the current drill program at Break of Day are expected mid-March.
What’s next?
Musgrave reported that further work at the deposit will include extensional and infill drilling in the high-grade portions of the deposit; along strike and down dip lode extensions are likely targets for further exploration; and regional exploration results will be assessed to identify other targets.
Management statements
Musgrave’s Managing Director Rob Waugh said “We are continuing to make new discoveries and grow the existing 100% owned gold resources at Cue.
This latest update significantly grows the contained ounces in the Lena Resource and improves the overall grade of the deposit while also delivering a major uplift in the geological confidence by reducing the drill hole spacing of the near surface component and thus growing the Indicated Resource category.
With drilling underway at the nearby high-grade Break of Day and Mainland-Consols deposits we are looking forward to more exciting results as the programs progress.”