Musgrave Minerals Ltd (ASX:MGV) has surged after returning bonanza-grade results of up to 3 metres at 884.7 g/t gold from 5 metres at the Starlight discovery of Break of Day within the flagship Cue Gold Project in Western Australia’s Murchison district.
This intersection, which included 1-metre at 2,518.8 g/t from 6 metres was within 14 metres at 191.1 g/t from 4 metres, and investors responded strongly with shares up as much as 20% to a new record high of 83 cents, supported by strong gold prices.
New results received by Musgrave from recent drilling continue to confirm the high-grade nature of the Starlight and White Light gold discoveries at Break of Day.
A total of 58 RC holes of a planned 70 holes have been completed with assay results received for 49 holes.
Other highly encouraging results from five RC holes at Starlight include:
- 22 metres at 5.8 g/t from 15 metres, including 3 metres at 26.2 g/t from 31 metres;
- 5 metres at 14.3 g/t from 90 metres, and;
- 6 metres at 5.3 g/t from 232 metres.
Six deep diamond drill hole tails and three infill diamond holes have been completed with assays received for five holes.
- 16 metres at 13.7 g/t from 18 metres, including 4 metres at 40.8 g/t from 18 metres and 9 metres at 6.1 g/t from 25 metres, and;
- 0.5 metres at 25.4 g/t from 269.5 metres.
Musgrave managing director Rob Waugh said: “Starlight continues to produce stunning gold results in near-surface drilling.
“Further RC drilling is underway to infill and extend the Starlight mineralisation with the aim of completing a JORC resource update late in quarter three 2020.
“Diamond drilling is also continuing to test for depth extensions of the high-grade Starlight lode below 250 vertical metres and to further define the White Light lode.
“We anticipate having four drill rigs on site by mid-August.”
White Light Lode
Notable results from the White Light lode include:
- 3.8 metres at 40.5 g/t from 100.2 metres, including 0.75 metres at 203.3 g/t from 100.2 metres, and;
- 1-metre at 22.6 g/t from 115 metres.
The Twilight Lode returned 0.7 metres at 34.1 g/t from 65.1 metres, extending the lode around 60 metres south beyond the existing resource estimate, and the Velvet Lode returned 12 metres at 6.4 g/t from 40 metres, confirming the near-surface gold mineralisation.
Starlight and White Light gold lodes, drill collars and recent assay results at Break of Day.
Resource estimate update pending
The current resource estimate for the Cue Gold Project totals 6.45 million tonnes at 3 g/t for 613,000 ounces including the Break of Day deposit with 868,000 tonnes at 7.2 g/t for 199,000 ounces and Lena deposit's 4.3 million tonnes at 2.3 g/t for 325,000 ounces 130 metres to the west.
This estimate does not include any results from the new Starlight and White Light gold discoveries.
An updated resource estimate incorporating these results is expected to be completed later this quarter.
Follow-up RC drilling on the Starlight lode at Break of Day is now 90% complete and is continuing along with the diamond drilling program.
Further assays from both programs are expected in two-three weeks.
Additional drilling on the newly discovered White Light lode at Break of Day is ongoing and shallow oxide infill RC drilling at Break of Day on the Twilight and Velvet lodes has started.
Evolution JV exploration
Musgrave has executed an $18 million Earn-in and Exploration Joint Venture with Evolution Mining Ltd (ASX:EVN) over the Lake Austin portion of the Cue Project, however, the Break of Day, Starlight, Lena and Mainland areas are excluded from the JV.
The phase two aircore drilling program testing high-priority gold targets on Lake Austin, is scheduled to begin this week.
A passive seismic survey will commence in late July to better estimate cover depths over prospective undrilled areas of Lake Austin.