Musgrave Minerals Ltd (ASX:MGV) is trading higher after defining new, large gold targets on the Lake Austin Joint Venture (JV) with Evolution Mining Ltd (ASX:EVN) within the Cue Project in WA’s Murchison district.
Aircore drilling results have extended the Lake Austin North anomalism to more than 5.5 kilometres of strike, confirming the potential for a large mineralised gold system.
Notable results include 6 metres at 4.2 g/t gold from 116 metres, including 1-metre at 18.2 g/t from 117 metres and 9 metres at 2.25 g/t from 136 metres to the end of hole.
Shares have been more than 12% higher to 26.5 cents this morning.
Results highlight prospectivity
Managing director Rob Waugh said: “These aircore results continue to show the large scale of the gold system lying hidden under Lake Austin and support the company’s view on the prospectivity of this large area.
“The Lake Austin North gold anomaly now extends for over 5.5 kilometres in strike with additional new anomalies at West Island and Mainland East highlighting the potential of the system to host significant gold deposits.”
High-priority basement targets
There were 249 holes drilled for 22,879 metres with multiple high-priority basement gold targets identified for follow-up drill testing.
Planning is underway for phase-2 scout drilling on Lake Austin which is scheduled to begin in late July 2020.
Significant results at West Island include:
- 2 metres at 1.52 g/t from 47 metres;
- 3 metres at 1.15 g/t from 99 metres;
- 34 metres at 0.28 g/t from 93 metres; and
- 28 metres at 0.32 g/t from 112 metres.
Notable intersections at Mainland East include 4 metres at 0.76 g/t from 66 metres and 4 metres 0.18 g/t from 8 metres.
In late 2019, Musgrave announced that it had entered into an Earn-In and Joint Venture Exploration Agreement with Evolution over a select area of Lake Austin and surrounds of the Cue Project in the Murchison District of Western Australia.
The Evolution JV excludes all the known resources at Cue, including Lena and Break of Day, and the Mainland option area.
Evolution can earn a 75% interest in the JV area by sole funding A$18 million on exploration over a five-year term with a minimum commitment of A$4 million in the first two years.
Musgrave is manager of the JV during the initial period.
Aircore drilling on Lake Austin as part of the joint venture commenced in February 2020.