INSIDE UPDATE: Musgrave Minerals (ASX: MGV) is conduction a drilling program designed to test ten new high priority gold targets at the company’s flagship Cue project in the Murchison district of Western Australia.
Musgrave Minerals’ Cue project contains the 3.55 million tonnes at 3.09 grams per tonne gold for 352,000 ounces of gold Moyagee gold Resource.
The main contributors to the Moyagee deposit are the Lena and Break of Day deposits, the latter of which being where Musgrave is currently focused.
Break of Day’s current contribution to the Moyagee Resources is an Indicated and Inferred Mineral Resource of 868,000 tonnes at 7.15g/t gold for 199,000 ounces of gold, which Musgrave expects to increase with further drilling.
All four holes of an extensional drilling program at Break of Day, returning intersections of:
16.3 metres at 1.2 grams per tonne gold from 258.7m down hole, including 0.7m at 9.9g/t gold from 258.7m; and
1.8m at 4.5g/t gold from 333m down hole.
In addition, the Velvet Lode was intersected by drill hole 18MODD002 returning:
2.1m at 2.6g/t gold from 362.8m down hole.
The current drilling is underway on the ten new targets that are open and untested by basement drilling.
These were identified on completion of a regional gravity survey undertaken on the company’s Cue tenements earlier this year.
Musgrave integrated the data gleaned from the gravity survey with existing aeromagnetic, geochemical and historical drilling information to define the targets along a prospective 20 kilometres long corridor.
“The integration of the new gravity data significantly improved our interpretation of the geology at Cue and provided great assistance in defining and prioritising new targets for drill testing,” Musgrave Minerals managing director Rob Waugh said.
“A number of the targets have an analogous setting to the two million-ounce Great Fingall deposit, 30 kilometres to the north.
“These are excellent targets and an opportunity for the company to make a game-changing discovery.”
Seven of the ten targets have historical broad-spaced aircore or rotary air blast (RAB) drill holes, all of which returned anomalous gold in assay results.
These historical drill holes terminated in weathered basement and did not penetrate the unweathered Archaean basement.
Predictably, a few of the targets do stand out more than the others as potentially prospective deposits, such as the Lake Austin North gold target.
Lake Austin North is a one-kilometre long regolith gold anomaly Musgrave has interpreted to be on a parallel shear to the Break of Day/Lena shear zone under lake sediments.
Historical aircore drilling from 2002 returned an intersection of 4 metres at 8.1g/t gold (MOAC153) at 87m vertical depth that remains open to the north and has not been followed up.
The target is only three kilometres north of Break of Day.
The West Island target is a 500m long gold target eight kilometres north of Break of Day that has been interpreted to also be on a parallel shear to the Break of Day/Lena shear zone under lake sediments.
Historical aircore drilling from 2006 intersected 4m at 2.7g/t gold at 107m down hole but no follow-up basement drilling has been conducted.
The 500m long Lake Austin gold target, only one kilometre north of Break of Day, has been interpreted to be sitting on the continuation of the Break of Day/Lena shear zone under shallow lake sediments.
Historical aircore drilling carried out in 1996 intersected 7m at 1g/t gold at 24m down hole but following the form of its predecessors, again no follow-up basement drilling has been conducted.
The gravity data also defined a parallel shear zone approximately 600 metres west of the Break of Day/Lena shear which has not been drill tested.
Musgrave has also planned further follow-up RC drilling that is to be undertaken at the Numbers prospect where an existing, near surface JORC 2004 Inferred Resource gold resource of 278,000 tonnes at 2.5g/t gold (22,000 ounces of gold) has been defined over a 260m strike extent.
“This drilling will test some exciting new large-scale targets in areas with very little previous exploration,” Waugh said.
“It’s 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 gold deposit.”
Musgrave Minerals Ltd (ASX: MGV)
…The Short Story
5 Ord Street
West Perth WA 6005
Ph: +61 8 9324 1061
Graham Ascough, Rob Waugh, Kelly Ross, John Percival