Musgrave Minerals More Than Doubles Lena Deposit Gold Resource

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported a substantial resource update at the company’s 100 per cent-owned Lena gold deposit on the company’s Cue gold project in the Murchison district of Western Australia.

Musgrave Minerals has increased the total Indicated and Inferred Mineral Resources for the Lena deposit taking it to 4.3 million tonnes at 2.3 grams per tonne gold for 325,000 ounces of contained gold.

To put things in perspective, since the previous Mineral Resource estimate that was achieved in July 2017, Musgrave Minerals has added 172,000 ounces of gold, increasing the Mineral Resources at Lena by 112 per cent and improving the overall grade of the deposit by 28 per cent to 2.3g/t gold.

The company explained the resource update incorporates the results of intensive reverse circulation (RC) and diamond drilling programs it has completed over the past six months.

The updated total Indicated and Inferred Mineral Resources for the Cue project, incorporating the Lena and Break of Day deposits and several smaller deposits, now stands at 6.45 million tonnes at 3g/t gold for 613,000 ounces of contained gold.

“We are continuing to make new discoveries and grow the existing 100 per cent-owned gold resources at Cue,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“This latest update significantly grows the contained ounces in the Lena Resource and improves the overall grade of the deposit while also delivering a major uplift in the geological confidence by reducing the drill hole spacing of the near surface component and thus growing the Indicated Resource category.

“With drilling underway at the nearby high-grade Break of Day and Mainland-Consols deposits we are looking forward to more exciting results as the programs progress.”

Musgrave has executed an $18 million Earn-in and Exploration Joint venture with Evolution Mining (ASX: EVN) over the Lake Austin portion of the Cue project.

The Break of Day, Lena and Mainland areas are excluded from the Earn-in and Exploration Joint Venture with Evolution Mining.