The latest assay results have revealed broad gold intersections, thus extending basement gold mineralisation at A-Zone to more than 350 metres in strike.
Best result was 137.2 metres at 0.6 g/t gold from 97.8 metres down hole, including 20.2 metres at 2.3 g/t from 194.0 metres and the zone remains open in all directions.
Musgrave managing director Rob Waugh said: “Diamond drilling continues to extend the basement gold mineralisation at A-Zone with recent assays returning further thick intervals of mineralisation.
“The system remains open in all directions with further drilling underway.”
Lake Austin North is 3 kilometres north of the Break of Day gold deposit within the flagship Cue project.
The first phase of diamond drilling at the A-Zone discovery was completed before Christmas with seven holes drilled for 1,950 metres.
Location plan showing Lake Austin North gold target.
Assay results have now been received for the final four of these holes.
Phase II program begins
A phase II diamond drilling program is underway at A-Zone with assay results expected in late February.
Waugh said: “Two drill rigs are operating and a third is expected to commence this week.
“Diamond drilling will continue to step-out and test the extents of the mineralisation along strike and down dip with the aim to outline the size and grade of this potentially large and exciting gold discovery.”
This program consists of a minimum of 15 drill holes for about 4,000 metres and drilling will continue until April.
Regional aircore drilling to start
The company will also begin regional lake aircore drilling this week aimed at defining the extents of the A-Zone and C-Zone mineralisation to enable accurate diamond drill targeting along strike.
This program will also include preliminary first pass testing of new lake gold targets.
Cue project location plan and tenure.
Aircore drilling is also underway to test three new gold targets on Cue’s northern tenure including the Vostock target, which is only 2 kilometres east of Westgold Resources Ltd’s (ASX:WGZ) Comet mine.
Assays are expected in March.
Musgrave is continuing development studies on the Break of Day and Lena deposits to evaluate options to optimise cash flow.
Break of Day hosts 868,000 tonnes at 7.15 g/t for 199,000 ounces and Lena host 2.682 million tonnes at 1.77 g/t for 153,000 ounces.
The company believes there is significant potential to extend existing mineralisation and discover new gold deposits within the project area.
Negotiations are continuing with Westgold regarding a mining and processing profit sharing agreement over the existing gold resources at Cue.
This proposed arrangement does not include Lake Austin North.