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Musgrave Minerals Ltd

Musgrave Minerals hit of 5 metres at 14.8 g/t highlights potential of gold system

The high-grade, high-priority basement target will now be tested further with a diamond drill hole starting this week.

Drilling at Lake Austin North
Drilling is continuing at Musgrave’s Lake Austin North prospect

Musgrave Minerals Ltd’s (ASX:MGV) result of 5 metres at 14.8 g/t gold highlights the potential for further discoveries at Lake Austin North system within the Cue Gold Project in WA’s Murchison region.

This result from 135 metres is within a 38-metre intersection from 111 metres downhole that graded 2.08 g/t and also included a 1-metre intercept from 136 metres at 65.4 g/t.

An ongoing regional scout aircore drilling program has identified the high-priority basement target, which Musgrave will follow-up this week with a diamond drill hole.

READ: Musgrave Minerals encouraged by scale of Lake Austin North gold system at Cue project

Musgrave managing director Rob Waugh said “This is another excellent result from the regional scout aircore drilling on Lake Austin and supports the company’s positive view that a large gold system is hidden below the salt lake.

“This regional drilling continues to define geochemical gold ‘halos’ to focus basement drill testing, with this intercept being the highest grade intersected from aircore drilling to date.

“The goal is to define all the individual high-grade basement deposits beneath this gold halo.”

These new drill results are from an area northeast of A-Zone at Lake Austin North which highlights a new extension to the D-Zone basement target.

This target may represent a splay off the main A-Zone shear and has potential to host high-grade basement gold mineralisation in fresh rock beneath the gold halo.

Location plan showing regional gold targets.

Other results include 52 metres at 0.29 g/t from 116 metres to the end of hole and 20 metres at 0.21 g/t from 111 metres.

READ: Musgrave Minerals secures new ground with potential to add to Cue’s golden bounty

Waugh said: “The new target is close to A-Zone where we have been conducting deeper drilling and having a rig in the area means it can be tested immediately.

“Diamond drilling will commence this week to test this new high-grade gold target.”

The regional aircore drilling program is about 80% complete with 123 drill holes completed for 14,016 metres.

READ: Musgrave Minerals’ joint venture partner to be acquired by ARC Exploration

Lake Austin North comprises multiple zones of anomalous gold mineralisation, many of which are yet to be tested with basement drilling.

This prospect is around 3 kilometres north of the company’s Break of Day and Lena gold deposits.

Potential to add to resources

Break of Day hosts 868,000 tonnes at 7.15 g/t for 199,000 ounces and Lena hosts 2.682 million tonnes at 1.77 g/t for 153,000 ounces.

Development studies on these deposits are ongoing and are aimed at enabling the company to evaluate options to optimise cash flow and maximise shareholder returns.

Cue project location plan and tenure.

Musgrave believes there is potential to extend existing mineralisation and discover new gold deposits within the Cue project area, as demonstrated by the drilling success at Lake Austin North.

The company also continues to compile historical data for the new Mainland project area with initial drilling expected next quarter.

Quick facts: Musgrave Minerals Ltd

Price: $0.08

Market: ASX
Market Cap: $29.01 m
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Musgrave Minerals begins drilling at newly acquired Mainland Prospect

Musgrave Minerals (ASX:MGV) managing direct Robert Waugh updates Proactive Investors on the initial drilling program which is underway at the Mainland Prospect within the company's Cue Gold Project in WA. About 1,500 metres of reverse circulation drilling will be carried out to test three...

on 5/7/19

3 min read