Musgrave Minerals Ltd (ASX:MGV) has intersected high-grade gold of up to 6 metres at 81.7 g/t from 72 metres in reverse circulation (RC) drilling at Break of Day deposit within the Cue Gold Project in Western Australia.
This intersection was returned from the Twilight Lode while another intersection of 6 metres at 51.7 g/t gold from 228 metres from the high-grade link-lode has confirmed the position of the lode.
Investors responded positively with shares up as much as 20% intra-day to a new 12-month high of 11.5 cents.
Drilling was focused on testing the new high-grade link-lode at Break of Day and has returned very high-grade gold results in the first drill holes which are likely to boost the current resource.
The link-lode remains open in all direction with assays from a further eight holes expected in late March.
A resource update incorporating the new link-lode at Break of Day will be scheduled for early in the September quarter of 2020 following further drilling.
Prospect location plan
Managing director Rob Waugh said: “This is a fantastic result and confirms the discovery of the high-grade link-lode at Break of Day.
“It also extends the Twilight lode and with further drilling we are confident we can significantly grow the high-grade Break of Day resource.
“This discovery also verifies a new target model for future drilling to test for additional discoveries in the region.
“We have yet to define the limits of this new link-lode and there are opportunities to find others in the Break of Day-Lena area.”
Break of Day resource
Break of Day has a resource of 868,000 tonnes at 7.2 g/t for 199,000 ounces of contained gold.
This estimate is based on two sub-parallel quartz vein lodes, Twilight and Velvet, striking about 30 degrees and which remain open at depth and to the south.
Plan showing the link-lode position at Break of Day as well as new drill collars and assay results
The RC drill program at Break of Day consisted of 13 holes for 2,490 metres.
The first follow-up drill hole (20MORC001), which sits outside the current resource boundary, intersected the Twilight lode at 72 metres and returned 6 metres at 81.7 g/t
This hole then intersected the link-lode returning 4 metres at 2.9 g/t gold from 189 metres and 6 metres at 51.7 g/t gold from 228 metres.
Drill-hole 20MORC002 intersected the Velvet lode and 20MORC004 intersected the Twilight lode returning 2 metres at 7.8 g/t gold from 61 metres and 18 metres at 3 g/t gold from 18 metres respectively.
These holes will now be used as pre-collars for future diamond hole extensions to test the link lode at depth.
The positive results at Break of Day confirm the geological interpretation and the identification of the link lode structure confirms the potential to add high-grade gold ounces to the resource.
Musgrave believes it is possible that other linking structures may be present within the region which will open a large new search space for exploration.
Follow-up drilling at Break of Day on the new link lode will restart in April.