The company said new intersections from the Lake Austin North target’s A Zone confirmed the potential for a large gold system.
Among the highlights was 26 metres grading 1.11 g/t gold from 120 metres, including 14 metres at 1.97 g/t from 132 metres to the end of the hole.
Musgrave reported the target was open in all directions and gravity data indicated the untested contact could extend 2 kilometres further along strike.
Another zone labelled C Zone was identified 300 west of A, with a standout intersection of 30 metres at 0.56 g/t seen from 66 metres and included 6 metres at 1.44 g/t gold from 90 metres to end-of-hole.
Resampling also confirmed higher grade results, with intersections such as: 2 metres grading 10.46 g/t gold from 131 metres to end of hole; and 2 metres at 7.83 g/t gold from 139 metres.
Musgrave managing director Rob Waugh said: “This is another strong result and with the mineralisation open in multiple directions along the granodiorite contact, it indicates we have identified a significant gold system.”
Many of the holes at the wholly-owned project ended in mineralisation.
Waugh said the company’s follow-up reverse circulation drilling campaign would aim to establish the thickness, tenor and extent of the unweathered rock mineralisation and define the system’s scale.
“Modelling of the recent gravity data also suggests the mineralised contact could extend for a significant strike extent under the salt lake in areas of no previous basement drilling,” he said.
A larger drill rig has been tracked down which can drill deeper than the depths of Musgrave’s prior drilling.
Cue project also includes the Numbers prospect which hosts a near-surface gold resource of 278,000 tonnes at 2.5 g/t gold over a 260-metre strike extent.