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Musgrave Minerals has drill spinning at Mainland and hits more high-grade gold at Lena

RC drilling is following up high-grade results and surface rock chip assays with additional drilling planned for Break of Day and Lena.

Musgrave Minerals Ltd - Musgrave Minerals has drill spinning at Mainland and hits more high-grade gold at Lena
The company is actively exploring a number of prospects at the Cue project

Musgrave Minerals Ltd (ASX:MGV) has started reverse circulation (RC) drilling at the Mainland area within Cue Gold Project in WA to follow-up previous high-grade drilling results and surface rock chip assays.

This program will consist of up to 18 RC drill holes for around 1,000 metres and will take a week to complete before the rig moves to the Break of Day and Lena deposits.

High grades at Lena

The company has also received further high-grade gold assay results from diamond drilling at the Lena deposit, including 2.2 metres at 10.6 g/t gold from 194.8 metres downhole.

Mainland and Lena are part of the company’s 100%-owned tenure at Cue in WA’s Murchison district and excluded from the $18 million earn-in and exploration JV with Evolution Mining Ltd (ASX:EVN).

“Untested gold potential”

Musgrave managing director Rob Waugh said “We are excited to recommence drilling at Mainland in areas where we have previously identified high-grade gold.

“There is significant untested gold potential within the Mainland tenements and we are only just getting started in terms of applying modern exploration techniques in the area.”

After executing an option agreement to acquire the Mainland tenements near Cue in March 2019, the company completed an initial RC drilling program and intersected 3 metres at 5.4 g/t from 74 metres at the Mainland-Consols target.

Cue project location plan and tenure.

This target is open to the south and down dip and follow-up drilling has started to further test this area together with other high-priority targets including the area where a high-grade rock-chip sample of 3,499.4 g/t was identified.

There is no historical drilling in the area of this sample.

Below existing resource

Assays from the latest diamond drill holes in the program at Lena returned high-grade gold over potentially mineable widths below the JORC resource boundary and confirm continuity of mineralisation at depth.

The 2.2-metre intercept, which was within 6 metres at 4.4 g/t from 191 metres, is 30 metres below the existing resource boundary and remains open down dip, highlighting the potential to extend the resource at depth.

Another intersection of 2.8 metres at 4.8 g/t from 384 metres is 140 metres below the existing resource on the western lode.

“Improved confidence”

Waugh said, “At Lena we continue to define high-grade extensions to the gold mineralisation below the existing JORC resource boundary.

“The drilling has improved our confidence in the continuity of the high-grade mineralisation at depth and will likely add high-grade ounces as we continue to drill to upgrade the existing resource at Lena.”

Cue project prospect location plan.

Lena has an existing JORC 2012 resource of 2.682 million tonnes at 1.77 g/t for 153,000 ounces, which is only estimated to a maximum vertical depth of 160 metres at the Lena main lode.

The deposit consists of a number of gold lodes, with some having significant high-grade potential at depth below the existing resource, as demonstrated by the new results.

These new results will be incorporated into the geological model to facilitate a re-estimation of the Lena gold resource.

Further RC drilling is scheduled to commence at Lena in early November to support an updated JORC-compliant resource estimate in early Q1 2020.

The Break of Day deposit hosts 868,000 tonnes at 7.15 g/t for 199,000 ounces.

On the new JV area over Lake Austin at Cue, Musgrave and Evolution are planning follow-up drilling programs at Lake Austin North and other lake targets where there is evidence of a potential large gold system.

Quick facts: Musgrave Minerals Ltd

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Market: ASX
Market Cap: $359.06 m

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