Musgrave Minerals Continues Lake Austin North Gold Hits

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) continued its run of strong assay results from recently completed regional aircore/reverse circulation (RC) drilling at the company’s Cue project in Western Australia’s Murchison district.

Musgrave Minerals said the drilling being carried out at the Lake Austin North gold target returned new thick intervals of gold mineralisation in Archaean regolith.

The Lake Austin North target now comprises multiple parallel zones of anomalous gold mineralisation 200 to 300 metres apart, approximately three kilometres north of the Break of Day and Lena gold deposits.

The company said results from A Zone at Lake Austin North had confirmed potential for a large gold system.

Latest intercepts include:

26 metres at 1.11 grams per tonne gold from 120m, including 14m at 1.97g/t gold from 132m to end of hole.

The A Zone target is open in all directions and detailed gravity data has indicated the untested contact could extend for a further two kilometres strike.

Musgrave has identified a new gold zone (C Zone) a further 300m west of A Zone where drilling intersected:

30m at 0.56g/t gold from 66m, including 6m at 1.44g/t gold from 90m to end of hole.

Re-sampling of 6m composites at 1m intervals undertaken by Musgrave has confirmed previous thick intersections and highlight high-grade zones, including:

2m at 10.46g/t gold from 131m to end of hole;

2m at 7.83g/t gold from 139m;

9m at 2.72g/t gold from 131m; and

5m at 4.9g/t gold from 143m;

“This is another strong result and with the mineralisation open in multiple directions along the granodiorite contact, it indicates we have identified a significant gold system,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Many of the drill holes currently terminate in mineralisation so follow-up RC drilling will be focused on establishing the true thickness, tenor and extent of the gold mineralisation in unweathered rock to help define the scale of the system.

“Modelling of the recent gravity data also suggests the mineralised contact could extend for a significant strike extent under the salt lake in areas of no previous basement drilling, thus increasing the exploration upside.”

Musgrave indicated follow-up, deeper basement drilling is set to commence at Lake Austin North in early August.

The company anticipates further assays in the next two weeks from an additional eight RC holes where six-metre composites have been resampled at one-metre intervals.

Development studies are continuing at the Break of Day and Lena deposits to evaluate options to optimise cash flow.