Musgrave Minerals Ltd (ASX:MGV) has hit high-grade shallow gold of up to 2 metres at 30.9 g/t at a new target 400 metres south of Starlight within the flagship Cue Gold Project in Western Australia’s Murchison district.
Regional aircore and reverse circulation (RC) drilling is targeting analogues on-trend from the new high-grade Starlight gold discovery at Break of Day deposit.
Assays have been received for the first 49 holes with a single aircore and RC traverse across a new regional target (Target 2) returning:
- 5 metres at 13.4 g/t gold from 28 metres, including 2 metres at 30.9 g/t; and
- 8 metres at 8.4 g/t from 41 metres, including 4 metres at 15.4 g/t from 44 metres.
Mineralisation is blind from surface, hidden below 2-3 metres of transported hardpan clays and is open along strike and down dip.
A single traverse of drill holes spaced at 20-metre intervals was planned as a first pass to test an initial 21 targets.
The company's market cap is approximately $244.5 million and shares have been as much as 13% higher intra-day to 58 cents.
“Very exciting result”
Managing director Rob Waugh said: “This is a great start to the regional program.
“Any significant gold anomalism on these new targets is encouraging but to get these high grades from this reconnaissance program is a very exciting result.
"We’re currently planning further follow-up drilling to commence in late October.”
Plan showing drill hole collars and new assay results.
To date a total of 220 aircore and RC holes have been completed.
Follow-up drilling of Target 2 is being planned and is expected to begin in late October.
Additional drilling to test the possible new lode 100 metres to the south of White Light is scheduled for November.
The Break of Day resource update, including the Starlight and White Light lodes, is scheduled for late October and metallurgical test-work is underway at Starlight with results expected in late October.
Phase-2 drilling on Lake Austin, designed to test high-priority gold targets, is continuing with around 12,000 metres completed of a planned 21,900 metres program.