Musgrave Minerals Encouraged by Cue Project Regional Drilling

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported the first results from drilling underway at the company’s Cue gold project in the Murchison region of Western Australia.

Musgrave Minerals has the results for the first 35 drill holes of the current 110 drill hole program that is testing 10 new high priority gold targets at the project.

The 10 high priority targets occur along a 20-kilometre-long prospective gold corridor that hosts the project’s Break of Day and Lena gold resources.

Break of Day:
868,000 tonnes at 7.15 grams per tonne gold for 199,000 ounces of gold.

2.682 million tonnes at 1.77g/t gold for 153,000 ounces of gold.

Musgrave identified the new targets by way of a recently completed regional gravity survey with existing aeromagnetic data, historical broad spaced aircore drilling and surface geochemistry.

The first batch of assays from the aircore/RC drilling program at Cue returned strong results from two new targets: Break of Day North and Lake Austin North.

Musgrave said the results highlight possible northern extension to the Break of Day mineralisation.

At Break of Day North hole 18MORC010 intersected 1 metre at 8.3g/t gold from only 4m depth, 200m north of the current resource.

Musgrave explained the intersection brings focus to 300m of previously untested strike potential for the Break of Day high-grade gold system.

Follow-up drilling is planned in the current program.

Results from the first drill holes at the Lake Austin North have identified a large regolith hosted gold halo, including:

21m at 0.78g/t gold from 118m to end of hole, including 6m at 2.2g/t gold from 118m;

24m at 0.54g/t gold from 98m, including 6m at 1.9g/t gold from 98m;

54m at 0.22g/t gold from 70m; and

18m at 0.20g/t gold from 94m.

These wide zones of near-surface gold mineralisation extend over one kilometre in length.

Musgrave considers they may be indicative of a higher-grade gold source in fresh rock.

Mineralisation is still open, and drilling is continuing at Lake Austin North to target the source of the gold halos.

“These initial results are extremely encouraging and have identified a potential extension to the high-grade gold mineralisation at Break of Day and a large regolith gold halo at Lake Austin North,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Both areas are potentially significant with the Break of Day north intersection only 200 metres from the northern edge of the current high-grade gold resource and the Lake Austin North target confirming significant thicknesses of regolith gold mineralisation over a large area in a structurally favourable position and on a favourable lithological contact.

“The project hosts a very prospective greenstone belt in a well-endowed region with good infrastructure and numerous operating gold plants.

“The focus of this drilling is to discover another high-grade Great Fingal-style gold deposit.

“We look forward to completing the remainder of the drill program and reporting further results that will follow.”