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Musgrave Minerals finds more high-grade gold below Lena near Cue JV with Evolution Mining

The Lena intersections were 80-140 metres below a JORC resource and featured up to 74.7 g/t gold.

Musgrave Minerals Ltd -
Lena target is on the same gold corridor as the Evolution JV area and is wholly owned

Musgrave Minerals Ltd (ASX:MGV) (FRA:6MU) has intersected additional high-grade gold beneath the wholly-owned Lena deposit at its Cue Gold Project in Western Australia. 

The high-grade intersections from Lena drilling at Cue included a 700-centimetre intersection featuring 74.7 g/t gold from 314 metres down-hole. 

Other stand-out intersections from the diamond drilling campaign included: 2.2 metres grading 6.5 g/t from 261.8 metres, including 0.6 metres at 14.3 g/t from 261.8 metres; and 1.7 metres grading 6.3 g/t from 289.2 metres. 

The West Perth company said today its results had highlighted the potential for the company to extend the Lena deposit in the Murchison district of WA. 

Musgrave managing director Rob Waugh reported: “These are excellent results and continue to increase our confidence in the high-grade plunge of the mineralisation at Lena where it remains open at depth. 

“The upside at Lena is significant and we look forward to further strong results as drilling continues.”

Lena is a 100%-owned deposit for Musgrave and is not part of its $18 million Lake Austin earn-in joint venture with Evolution Mining Ltd (ASX:EVN) (FRA:WE7) (OTCMKTS:CAHPF) signed a week ago.

The Evolution JV is focused on the Lake Austin North area of the Cue project which has a wider prospective gold corridor that extends for more than 28 kilometres.

Musgrave investor Evolution can earn a stake of up to 75% in the partners’ JV area by sole funding $18 million of spending in the area in the next 5 years.

It must spend at least $4 million in the next two years under the partners’ agreement.

Musgrave’s Break of Day Lena Gold Corridor hosts a number of deposits not included in the main JV.

These are the Lena, Break of Day and the Mainland areas which leave Musgrave room to add shareholder value to the company as it undertakes its own funded exploration efforts.

Lena features a 2.68 million tonne deposit grading 1.77 g/t gold for 153,000 ounces while Break of Day has a 868,000-tonne deposit grading 7.15 g/t for 199,000 ounces.

Musgrave will act as manager for the Lake Austin JV during the first two years of Evolution’s earn-in, as the junior company focuses on accelerating its activities at Cue through drilling and discovery efforts.

The Cue project operator plans to start a follow-up reverse circulation (RC) drilling campaign at its wholly-owned Mainland target in the December quarter of 2019.

It also plans to aircore drill new undercover targets in the Mainland area during the quarter.

Musgrave’s Break of Day drill campaign planning is in the works.

The company hopes to undertake development studies for Break of Day and Lena so it can judge how to optimise its cash flow.

Evolution is subscribing to $1.5 million of new shares in Musgrave as part of the week-old JV, to collect 18.6 million of shares in the company.

Quick facts: Musgrave Minerals Ltd

Price: 0.097 AUD

Market: ASX
Market Cap: $39.35 m

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