The program, which is 55% complete with 61 drill holes for 8,065 metres, was undertaken directly west of Lake Austin North and identified the D-Zone target and E-Zone target.
These basement targets may represent splays off the main A-Zone shear and have the potential to host gold mineralisation.
“An excellent early result”
Musgrave managing director Rob Waugh said: “This is an excellent early result from the regional lake aircore drilling and validates the company’s view that Lake Austin North has the potential to be a large gold system with multiple mineralised structures.
“Similar regolith gold mineralisation was intersected in first pass aircore drilling of the A-Zone basement mineralisation in 2018.
“These new targets are still open to the south with drilling ongoing.”
The D-Zone target, which is 400 metres long and defined by strong alteration as well as shearing along the southern margin of the tonalite contact, returned gold intersections including 26 metres at 0.62 g/t from 81 metres and 45 metres at 0.18 g/t from 91 metres.
The E-Zone target is 700 metres long and is defined by the following intersections:
- 12 metres at 0.97 g/t from 99 metres;
- 18 metres at 0.76 g/t from 105 metres; and
- 4 metres at 1.09 g/t from 105 metres.
Both zones are open to the south and many of the aircore drill holes terminated in mineralisation, further highlighting the basement targets for drill testing.
Phase II of diamond drilling at A-Zone consists of 15 drill holes for around 4,000 metres and continue until April with the next assays expected in early March.
The regional lake aircore drilling is also continuing and aims to define the extents of the Lake Austin North regolith mineralisation as well as enable accurate basement diamond drill targeting.
Development studies on the Break of Day and Lena gold deposits are ongoing and are designed to evaluate options to optimise cash-flow and maximise shareholders returns.
Discussions are ongoing regarding a mining and processing profit sharing agreement over the existing gold resources at Cue.
- Jessica Cummins