The 10-hole, 1,500-metre reverse circulation (RC) program is testing for gold below a series of existing historical gold workings, which have not been drill tested before.
The targets at Mainland occur along a 28-kilometre-long prospective corridor that hosts the Break of Day (199,000 ounces at 7.15 g/t gold) and Lena (153,000 ounces at 1.77 g/t gold resources.
Musgrave believes there is significant potential to extend existing mineralisation and discover new gold deposits within the Cue Project.
Musgrave’s managing director Rob Waugh said: “This is proving to be a very prospective greenstone belt with significant upside potential, in a well-endowed region with good infrastructure and numerous operating gold plants.
“The focus of this drilling is to discover another high-grade Break of Day style gold deposit. We will use similar techniques to those successfully implemented in the Break of Day discovery.
“If we are successful again, adding additional resources will be the next step towards justifying the development of a stand-alone gold operation at Cue.
“At Lake Austin North we have just completed a detailed regional airborne magnetic survey which is being interpreted in conjunction with the geological and assay data and a detailed structural analysis to prioritise targets for our next phase of drilling.
“We are seeing evidence of a large gold system at Lake Austin North and this analysis will allow a focused approach to the next phase of drilling.”
Westgold Resources increases shareholding in Musgrave
Yesterday after market it was revealed that gold producer Westgold Resources Ltd (ASX:WGX) had increased its holding in Musgrave to 16.78%.
Westgold purchased 16.88 million shares in Musgrave to increase its stake from 12.41% to its 64.88 million shareholding for 16.78%.
ASX100 gold miner Westgold produced 67,168 ounces from its four gold mining operations in the March quarter of 2019.
In late May 2019, Musgrave received results from aircore drilling at its Lake Austin North A-Zone target within the Cue Project.
Highlights included included 50 metres at 1.1 g/t gold from 114 metres down hole, and 28 metres at 1.17 g/t gold from 114 metres down hole.
The results have added weight to Musgrave’s belief that a large mineralised gold system lies hidden under the lake.