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Musgrave Minerals resumes RC drilling at Starlight discovery within Cue Gold Project

The Cue Gold Project hosts mineral resources totalling 6.45 million tonnes at 3 g/t gold for 613,000 ounces contained gold.

Musgrave Minerals Ltd - Musgrave Minerals resumes RC drilling at Starlight discovery within Cue Gold Project
First assays are expected in early June

Musgrave Minerals Ltd (ASX:MGV) has recommenced reverse circulation (RC) drilling at the high-grade Starlight gold discovery at Break of Day within the flagship Cue Gold Project in Western Australia’s Murchison region.

The program is focused on drill testing the strike and depth extension of the Starlight link-lode at Break of Day and once completed, diamond drilling will further test mineralisation at depth.

Resource update in Q3

Managing director Rob Waugh said: “The company is very active on the Cue Project and will continue to drill to define the extents of the high-grade Starlight lode.

“This drilling together with the diamond drilling to follow will lead to a resource update late in Q3 2020.

“We look forward to reporting the new drill results as they come to hand.”

20 RC holes

The RC program will consist of around 20 holes for 4,000 metres with the first assays expected in early June.

Musgrave believes there is potential to extend existing mineralisation and discover new gold deposits within the project area, as demonstrated by the recent drilling success at Break of Day, Lena and Lake Austin North.

The company’s intent is to investigate options to best develop a low-cost operation, capable of delivering strong financial returns for its shareholders.

Ongoing exploration

Diamond drilling at Starlight will follow ahead of the anticipated resource update.

The regional aircore geochemical drilling program on Lake Austin is progressing well and results will be reported on completion of the program and receipt of final assays.

Shares are up more than 4% to 11.5 cents.

Encouraging copper results

Musgrave is also encouraged by copper results received by partner Cyprium Metals Ltd (ASX:CYM) at the Hollandaire and Eelya South prospects of the Cue Copper JV.

An option has been granted by Musgrave to Cyprium to earn-in and joint venture for an 80% interest in the non-gold rights over the tenements at Cue Copper Project.

RC drilling was completed during March 2020 at Hollandaire around the margins of the existing deposit to test extensions of the mineralisation.

Results include:

  • 1-metre at 1.08% copper from 53 metres;
  • 4.0 metres at 1.20% from 144 metres;
  • 2.0 metres at 1.49% from 153 metres;
  • 2.0 metres at 1.78% from 180 metres; and
  • 2.0 metres at 1.49% from 180 metres.

RC drilling was also conducted to the north of the copper-rich intersections from two holes at Eelya South prospect which were hosted in a sulphide-rich zone.

There was a continuation of the sulphide-rich zone in this drilling with a result of 1-metre at 1.10% from 35 metres, however, there were no other significant copper grades intersected.

Fieldwork at Eelya South has resumed to evaluate the potential for further copper-rich sulphides in the prospect area.

"Very pleasing"

Cyprium's executive director Barry Cahill said: “The extensions to the mineralised zone at the Hollandaire prospect are very pleasing to see and this is being taken into consideration in the ongoing scoping study, which includes a review of the most appropriate cut-off grade for the deposits.

"The scoping study work is continuing in conjunction with our external consultants and we look forward to announcing the results in due course.”

Quick facts: Musgrave Minerals Ltd

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Market: ASX
Market Cap: $260.75 m

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