Musgrave Minerals Continues Near-Surface Gold Hits at Lena

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) received a further eleven drill holes from a reverse circulation (RC) drilling program at the Lena gold prospect on the Cue project in the Murchison region of Western Australia, a Joint Venture with Silver Lake Resources (ASX: SLR).

Musgrave Minerals said the latest results are encouraging and support remodelling of the existing resource at Lena.

Infill drilling at Lena to update the shallow oxide resource has intersected:


2 metres at 8.9 grams per tonne gold from 16m down hole;


2m at 8g/t gold from 67m down hole with mineralisation open at end of hole;


4m at 2.4g/t gold from 13m down hole;


6m at 1.0g/t gold from 64m down hole;


11m at 2.3g/t gold from 41m down hole; and


2m at 3.3g/t gold from 7m down hole.

Assay results are pending for a further 18 drill holes from Lena and the Break of Day prospect.

“These positive shallow gold results from Lena extend the mineralisation very close to surface and will enhance the oxide component of the existing resource estimate,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“With the next phase of drilling underway, we are working towards upgrading the Lena and Break of Day Mineral Resources in June 2017 and look forward to continuing the strong drill results that we have produced to date.”

Musgrave Minerals indicated the JV has commenced Stage two of the drill program of a further 35 RC drill holes, which will include both extensional and infill drilling at Break of Day and Lena with a focus on the high-grade southern extension of Break of Day.

The objective of the drilling is to complete a new resource estimate by June 2017 that will underpin studies to demonstrate a viable near term path to development.