Musgrave Minerals Ltd (ASX:MGV) has revealed a 500-metre-long high-grade shoot position at Lena deposit of the Cue project in WA's Murchison district with potential to grow the 152,000-ounce resource.
A reassessment of historical drilling data provided the company with evidence of the high-grade gold shoot below the current resource and Musgrave has started drilling to better define and infill this shoot, which remains open at depth.
This program will consist of a combination of reverse circulation (pre-collars) and diamond drilling with the aim of improving geological confidence in continuity of the mineralisation by reducing drill spacing.
Musgrave is confident that this work will enable an upgrade of the Lena JORC resource, which is only estimated at a maximum vertical depth of 160 metres.
Musgrave managing director Rob Waugh said: “Reinterpreting the geological data from historical drilling has indicated the possibility of significant upside gold potential beneath the existing resource at Lena.
“The reinterpretation of the existing geology and shoot control has highlighted the potential to extend the current resource at depth.
“The structure hosting the Lena deposit is a significant shear zone with a broad alteration halo – we believe there is significant potential to grow the high-grade component by focusing the deeper drilling on these high-grade shoots.”
Historical high-grade gold intersections beneath the resource include:
- 6 metres at 31.1 g/t from 354.8 metres;
- 6.2 metres at 18.6 g/t from 372.2 metres;
- 4.3 metres at 14.1 g/t from 367.9 metres;
- 3.1 metres at 16.9 g/t from 304.5 metres; and
- 2 metres at 82 g/t from 220 metres.
Waugh added: “The drilling at Lena is being undertaken concurrently with planning our next steps at Lake Austin North where there is significant evidence of a large gold system.”
An RC drilling program at the Mainland deposit, also within Cue project, has been completed with 11 holes for 1,373 metres testing three targets with assay results expected in mid-August.
At Lake Austin, survey results from a recent regional airborne magnetic survey are being integrated with the geological and assay data from drilling as well as a detailed structural analysis.
A $150,000 government co-funded drilling grant will partially fund the next phase of drilling that is scheduled to begin in quarter-four this year.