Musgrave Minerals Ltd (ASX:MGV) has surged after hitting near-surface gold grades of up to 18 metres at 179.4 g/t in drilling at the Starlight discovery at Break of Day within its Cue Gold Project in Western Australia’s Murchison district.
This bonanza grade result from 30 metres was within 42 metres at 77.3 g/t from 30 metres and also included 6 metres at 498.2 g/t from 36 metres.
It was not alone with other impressive results from the reverse circulation (RC) program returned such as 61 metres at 12.7 g/t from 76 metres including 6 metres at 44.6 g/t from 76 metres and 21 metres at 23.6 g/t from 106 metres.
Shares have been as much as 54% higher to 37 cents, a new record for the company.
“Amazing gold grades”
Musgrave managing director Rob Waugh said: “These are amazing gold grades to see in near-surface drilling.”
Shares have more than doubled since the close on May 12.
The company has received results from a further seven RC holes with intersections in all drill holes sitting outside but in proximity to the current 199,000-ounce resource at Break of Day.
Other results from the Starlight link-lode are:
- 22 metres at 21.0 g/t from 2 metres including 9 metres at 49.2 g/t from 8 metres;
- 9 metres at 16.5 g/t from 225 metres including 3 metres at 47.6 g/t from 225 metres;
- 4 metres at 48.2 g/t from 85 metres; and
- 2 metres at 37.7 g/t from 74 metres.
Mineralisation at Starlight remains open down plunge and along strike to the east and west below 100 metres depth.
Waugh said: “Our deepest holes to date are still in high-grade mineralisation at 200 vertical metres where Starlight remains open down dip.
“The bonanza grades near-surface will have a significant positive impact on future development at Break of Day.”
RC drilling ongoing
The RC drilling campaign of around 36 holes for approximately 7,000 metres is about 80% complete.
It is focused on infilling and extending the high-grade Starlight lode where mineralisation has been intersected over a strike of more than 115 metres and remains open down dip and along strike.
Assays have been received for 19 holes to date with further assays expected within two weeks.
Diamond drilling to start
Musgrave expects to begin diamond drilling at Starlight this week to test depth extensions to the Starlight mineralisation.
A resource update for Break of Day, including Starlight, is scheduled for late in the September quarter of 2020.
The Cue Gold Project hosts total resources of 6.45 million tonnes at 3.0 g/t for 613,000 ounces.
As well as Break of Day, there is the Lena deposit 130 metres to the west which has a resource of 4.3 million tonnes at 2.3 g/t for 325,000 ounces of contained gold.
This has identified numerous priority gold targets that warrant follow-up drill testing.
The phase-2 follow-up aircore drilling of high-priority gold targets is scheduled to commence in late July 2020.