Musgrave Minerals Moves to 100% Stake in Cue Project
THE INSIDE STORY: Musgrave Minerals (ASX: MGV) recently announced its intention to assume 100 per cent ownership of the Cue project in the Murchison Province of Western Australia.
Musgrave Minerals was in a Farm-In and Joint Venture Agreement with Silver Lake Resources (ASX: SLR), which had signalled it would be selling its 40 per cent interest to Westgold Resources (ASX: WGX).
Musgrave elected to exercise its pre-emptive right and acquire SLR’s interest in the project, saying at the time that it believes potential exists to extend existing mineralisation and to also discover new high-grade mineralisation within the project area, which has been demonstrated by the recent success at Break of Day and Lena deposits.
Much of the recent exploration activity has focused on drilling at the Break of Day and Lena gold prospects on the Moyagee area at the Cue project.
The Moyagee area hosts a combined JORC (2012) and JORC (2004) compliant Mineral Resource of 3.87 million tonnes at 3.07 grams per tonne gold for 382,000 ounces contained gold within four separate deposits: Break of Day, Lena, Leviticus and Numbers.
The Break of Day Mineral Resource estimate currently stands at 868,000 tonnes at 7.15g/t gold for 199,000 ounces contained gold (Indicated and Inferred) with 55 per cent of the resource in the higher confidence Indicated category.
Break of Day mineralisation is open in all directions and RC drilling has continued to intersect high-grade gold with drill results incorporated in the Mineral Resource estimate.
The Lena Mineral Resource estimate of 2.68 million tonnes at 1.77g/t gold for 153,000 ounces contained gold (Indicated and Inferred) boasts 46 per cent of the resource in the Indicated category.
Lena has produced metallurgical gold recoveries greater than 95 per cent from oxide and transitional material.
RC drilling has intersected near surface gold with the drill results incorporated in the Mineral Resource estimate
After the announcement, Musgrave reported the identification of new high-priority gold targets for drill testing on the Cue Project in the Murchison region of Western Australia.
The new targets included the Louise prospect, an extensive gold soil anomaly located approximately 600 metres south of the high-grade Break of Day gold deposit.
The Louise prospect gold target currently measures over 500m long and 250m wide and covers the southern extensions of both the Break of Day and Lena shear zones.
The anomaly returned a peak gold value of 1,382ppb gold in soils (1.3g/t gold) and has never been effectively drill tested.
The soil anomaly follows a series of old workings analogous to Break of Day. Drilling is planned to test this high priority target during the next phase of RC drilling, which has commenced.
Musgrave continued its run of positive drilling announcements by providing further assay results from a RC drill program at.
The base metals and gold focused drilling program was completed in late May comprising 16 drill holes for a total of 2,720m.
Drill hole assay results were received for all drill holes with results from 17EPRC001 through 17EPRC005 having been previously reported.
Drilling at three targets returned encouraging gold anomalism, CV19 (17EPRC009), CV20 (Lady Stardust – 17EPRC010) and CV22 (17EPRC011).
Strong shearing, alteration, the presence of semi massive sulphide (pyrrhotite and pyrite) and highly anomalous gold was identified.
Musgrave is eager to commence follow up geochemical surveys, and further drilling it has planned on these targets, which are all located within 10km of the Tuckabianna mill that was recently purchased by Westgold.
Highly anomalous copper and zinc was also identified in a number of drill holes, leading to down hole electromagnetic surveys, which are scheduled to be undertaken on selected drill holes later in th eyear.
Drill hole 17EPRC010 intersected elevated gold including:
18 metres at 0.1 grams per tonne gold from 102 to 120m and terminated in a second zone which assayed 1m at 1.24g/t gold at the end of hole at 159m.
“These results support the company’s, very positive view on the gold prospectivity of the Cue project,” Musgrave Minerals managing director Rob Waugh said.
“We continue to identify high-priority targets and have a strong belief in the upside potential of the project.
“The Louise target south of Break of Day has the potential to be another high-grade gold discovery opportunity.”
Musgrave Minerals Ltd (ASX: MGV)
…The Short Story
HEAD OFFICE
28 Richardson Street
West Perth WA 6005
Ph: +61 8 9324 1061
Email: info@musgraveminerals.com.au
Website: www.mugraveminerals.com.au
DIRECTORS
Graham Ascough, Rob Waugh, Kelly Ross, John Percival