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Musgrave Minerals broad, near-surface high-grade results open up further Cue gold discovery potential

Results from Big Sky and Target 14 prospects have potential to push the 659,000-ounce resource at Cue towards 1 million ounces.

Musgrave Minerals Ltd - Musgrave Minerals broad, near-surface high-grade results open up further Cue gold discovery potential

Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) continues to grow confidence in the potential of the flagship Cue Project in Western Australia to deliver a plus 1-million-ounce resource with further broad, near-surface high-grade gold returned from new discovery opportunities.

Reverse circulation (RC) drilling at the Target 14 and Big Sky prospects along the new gold corridor southwest of the Lena and Break of Day resources in WA’s Murchison district returned encouraging results.

At Target 14 the best result was 36 metres at 2.9 g/t from 12 metres, including 24 metres at 4.1 g/t from 24 metres while Big Sky returned 60 metres at 1.0 g/t from 42 metres and this was 50 metres south of a previous result of 73 metres at 1.4 g/t.

Discovery opportunities

Musgrave managing director Rob Waugh said Big Sky and Target 14 were new and exciting discovery opportunities for the company.

Recent assays continue to define thick regolith gold mineralisation within the extensive 2.6-kilometre-long aircore gold anomaly at Big Sky where mineralisation remains open down dip and infill resource definition RC drilling is underway.

Target 14 also remains open and further drilling to follow-up the recent intercept will begin in October.

"Thick, near-surface, oxide gold mineralisation has been identified over broad intervals at Big Sky, which has the potential to add significant feed tonnes to a future operation focused at Break of Day and Lena,” Waugh said.

Potential for feed continuity

"The potential addition of soft oxide mineralisation from Big Sky, together with the higher-grade Break of Day and Lena deposits only 2 kilometres to the north could significantly improve sustainability of production scheduling and help provide feed continuity over a longer potential operating term,” he said.

The Cue Gold Project is about 30 kilometres south of the township of Cue with the Lena and Break of Day deposits only 5 kilometres from the Great Northern Highway, about 600 kilometres north of Perth.

The resource estimate for the project totals 6.4 million tonnes at 3.2 g/t for 659,000 ounces including the Break of Day deposit with 262,000 ounces and Lena with 325,000 ounces.

Regional plan showing drill hole collars and significant prospect locations.

RC drilling southwest of Lena within a new 7-kilometre-long gold corridor continues to intersect significant gold mineralisation below thin transported cover in areas not drilled by previous explorers.

Big Sky results

The Big Sky anomaly, which is about 2 kilometres southwest of Break of Day, is defined over 2.6 kilometres of continuous strike.

Infill resource definition RC drilling has commenced to test the continuity, grade and down dip extent of the mineralisation in oxide and fresh basement rock.

A combination of 6-metre composite samples and 1-metre individual samples have been received from a further 55 RC drill holes in the current program at Big Sky, with infill drilling underway to enable a maiden resource estimate in early 2022.

Other strong results are:

  • 6 metres at 6.9 g/t gold from 12 metres;
  • 18 metres at 1.1 g/t from 36 metres;
  • 12 metres at 1.7 g/t from 84 metres;
  • 12 metres at 1.6 g/t from 48 metres; and
  • 6 metres at 2.2 g/t from 30 metres.

Plan showing Big Sky Prospect, drill hole collars and new areas of resource drilling follow-up.

Focus on resource growth

“Big Sky continues to deliver strong results for Musgrave. We are focusing on near-surface resource growth and exploring for both smaller high-grade deposits like White Heat in combination with larger near-surface but lower grade mineralisation like Big Sky,” Waugh said.

"Both can potentially be mined by open pit methods and blended to maintain a steady rate of production.

"A 7,000-metre RC follow-up resource drilling program at Big Sky has commenced. The drilling will focus on three zones of between 600 metres and 200 metres of continuous mineralised strike, with the aim of defining a near-surface gold resource to grow the total resource inventory at Cue.

"Drilling is ongoing and we look forward to updating the market with further results as assays are received.”

The ongoing focus is on the higher grade and thicker intervals of gold mineralisation intersected to date. The extensive nature and continuity of the gold mineralisation support the view that the Big Sky prospect has the potential to add to the existing resource base at Cue.

A single diamond drill hole to test the basement at Big Sky below hole 21MORC101 that returned 73 metres at 1.4 g/t from 41 metres intersected mineralised, sheared porphyry from 99.3 metres on a sediment lithological contact.

It returned 62.7 metres at 0.6 g/t from 99.3 metres, including 6.7 metres at 2.4 g/t from 99.3 metres in lower saprolite and 7.0 metres at 1.5 g/t from 155 metres in fresh altered porphyry.

Target 14

At Target 14, 1.2 kilometres southeast of Break of Day and 800 metres north of Big Sky, RC drilling continues to intersect regolith gold mineralisation with other results of:

  • 12 metres at 1.7 g/t gold from 84 metres;
  • 6 metres at 2.2 g/t from 30 metres; and
  • 12 metres at 1.6 g/t from 48 metres.

The primary source of this regolith mineralisation is not yet defined with further drilling planned to start in October.

Target 14 Prospect, showing drill hole collars and new assay results.

Upcoming work

As well as the upcoming work at Big Sky and Target 14, Musgrave has follow-up extensional resource definition RC drilling at the White Heat prospect underway with assays expected in November.

Work to progress the pre-feasibility level studies at Break of Day and Lena are continuing with additional metallurgical and geotechnical test work continuing. Analysis and reporting of hydrological drilling completed in July is awaited.

At the JV with Evolution Mining Ltd (ASX:EVN) follow-up diamond drilling at West Island and Austin North prospects on Lake Austin is continuing with seven holes completed in the current program. Assays are pending.

Regional reconnaissance and infill aircore drilling on Lake Austin to define additional targets for basement diamond drill testing is 75% complete.

 

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Musgrave Minerals reports further thick intervals of near-surface gold at...

Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF)'s Rob Waugh tells Proactive they're continuing to grow confidence in the potential of the flagship Cue Project in Western Australia to deliver a plus 1-million-ounce resource with further broad, near-surface high-grade gold returned from new discovery...

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