Musgrave Minerals Ltd (ASX:MGV) (OTCMKTS:MGVMF) (FRA:6MU) chairman Graham Ascough told the AGM today that he believes the company’s CueGold Project in the well-endowed gold-producing Murchison region of Western Australia is a game-changer.
He said: “The outstanding success of our exploration programs at Cue have been transformational for Musgrave and the highlight for 2020 is the discovery of the high-grade, near-surface Starlight gold lode at Break of Day.
“The strong growth in our share price over the past 12 months is recognition by the market that our exploration efforts are successful in delivering high-value discoveries.”
Mineral resource update
The company recently completed a mineral resource update for Break of Day that includes the new Starlight and White Light gold lodes.
Break of Day is now estimated to host around 797,000 tonnes grading 10.2 g/t gold for around 262,000 ounces of gold.
Ascough said: “We believe this is one of the highest grade, undeveloped, near-surface resources in Australia.
“When combined with the Lena deposit, located only 130 metres to the northwest, inferred and indicated resources total 5.1 million tonnes at 3.6 g/t gold for around 587,000 ounces of contained gold, a significant portion of which will be amenable to open pit mining.
“This will form the basis for development studies and the pathway to production.”
Potential for new discoveries
Ascough said that the Starlight discovery resulted from the culmination of the years of experience at Cue and subsequent in-depth analysis of recent results had identified several lookalike targets along the belt.
He said: “We are still testing these targets, but early results suggest we may be onto several new discoveries with intersections of high-grade gold being returned from two targets to date and anomalous gold being encountered on numerous other targets.
Lake Austin drilling
The Phase 1 program at Lake Austin is complete (22,879 metres) and the follow-up Phase 2 program is well underway (an additional 21,900 metres).
Assays received for Phase 1 have identified multiple regolith gold halos that potentially overlie significant accumulations of gold in the underlying basement.
Once the current Phase 2 program is complete, the priority basement targets will be tested with RC and/or diamond drilling which is expected this to begin early in 2021.