Gold and base metals explorer Musgrave Minerals (ASX:MGV) has returned gold grades upwards of 1,122 grams per tonne amid Ramelius Resources (ASX:RMS) off-market takeover.
Musgrave announces these results were generated from reverse circulation (RC) drilling undertaken at both the Twilight and Velvet Lodes at the Break of Day and White Heat deposits respectively. These deposits are located within Musgrave’s flagship Cue Gold Project in Western Australia.
These results also further validate the projects ‘high-grade’ endowment, and demonstrate ‘significant’ new grade control intersections, says the $209.87 million market capitalisation company.
Key results from Break of Day include hole 23MORC318 with 18m @ 71g/t Au from 7m including 2m @ 62g/t Au from 14m; and hole 23MORC351 with 10m @ 64g/t Au from 4m including 2m @ 226.7g/t Au from 9m.
Other ‘significant’ key results from White Heat include hole 23MORC225 with 3m @ 378g/t Au from 12m including 1m @ 1,122g/t Au from 12m; and hole 23MORC233 with 7m @ 52.8g/t Au from 20m including 1m @ 296.2g/t Au from 21m.
Musgrave notes these results are located inside the stage one Prefeasibility Study (PFS) open pit designs and are broadly aligned with previous data.
It is believed this grade control drilling will provide increased confidence in the resource, as well as enable a future resource update, and de-risk the development of the project.
Speaking on the results, Musgrave Minerals Managing Director Rob Waugh says: “This is another strong set of drill results which continue to support the previously reported high-grade, near-surface endowment of the Cue Gold Project. Following the strong financial metrics of the stage one Prefeasibility Study in April 2023, and prior to the takeover, the Company was focused on grade control drilling to de-risk the initial stages of open pit development.
These infill grade control drilling results provide added certainty in forecasting and scheduling of future gold production. The broad pool of results support and are aligned with previous data and continue to highlight the very high-grade, near-surface nature of the gold system at Cue.”
The company also notes these grades have been returned following an unconditional off-market takeover offer from Ramelius Resources. As at 4 September 2023 Ramelius currently controls 81.7% of Musgrave shares.
Musgrave Minerals is a project developer focused on gold and base metal exploration within its wholly owned flagship Cue project in the Murchison region of Western Australia.
The project is located about 30km south of the township of Cue and about 40km north of Mt Magnet and comprises both the White Heat and Break of Day deposits. The project also holds a Mineral Resource Estimate (MRE) of 12.3 million tonnes (Mt) @ 2.3g/t Au for 927,000 ounce gold.
Musgrave Minerals had $8.76 million cash at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Musgrave Minerals