Musgrave (ASX:MGV) jumps on assays revealing new high-grade lode along Break of Day

By - Shwetambri Chauhan


  • The final drill assays from Musgrave Minerals’ Cue Gold Project have identified a potential new high-grade lode ~50m north of the Break of Day corridor.
  • Having a potential strike of up to 100m, the new lode sits within the high-titanium basalt, which is a recognised favourable stratigraphic host at the corridor.
  • The company has also received encouraging results from the new Waratah zone, White Light, and White Heat-Mosaic.
  • Musgrave is aiming to finalise a Stage 1 Pre-feasibility Study (PFS) by the end of this quarter.
  • The company has outlined exploration activities across its 100% held tenements.

Musgrave Minerals Ltd (ASX: MGV) saw a jump of nearly 3% in its share price in the early hours of 23 February 2023. The shares were spotted trading at AU$0.175.

The trigger in the share price followed the release of the final assay results from the reverse circulation (RC) drilling completed across multiple prospects on the company’s Cue Gold Project in December last year. The Cue Gold Project, wholly owned by the company, is located in the Murchison region of Western Australia.

Notably, the latest assays identified a potential new high-grade lode ~50m north of Break of Day.

Source: © 2023 Krish Capital Pty. Ltd.

Potential new high-grade lode along Break of Day North

The total Mineral Resource Estimate (MRE) for the Break of Day high-grade mineralised trend stands at 982k tonnes @ 10.4 gram per tonne gold for 327k ounces gold. Of the total, 70% falls under the higher confidence category of Indicated Resources.

For follow-up, the team identified three untested targets, of which one is only 50m north of the current Break of Day MRE boundary.

Data source: MGV update

The company is now planning follow-up drilling, which is expected to help confirm the currently unknown true width of the new RC drill intersection.

Assays from White Light Lode, White Heat-Mosaic, and Waratah

The White Light Lode is part of the Break of Day MRE. New RC drill intersection outside the Mineral Resource boundary extend the mineralisation to the southeast.

Data source: MGV update

The White Heat-Mosaic deposit is a subset of the Break of Day MRE. The deposit has a resource estimate of 185k tonnes @ 11.0 gram per tonne gold for 65k ounces gold.

The latest drilling has validated that the endowment along this trend is of high grade and is near surface. Moreover, it is characterised by quartz lodes within a high-titanium basalt stratigraphic unit.

The company reported an extension of the known gold mineralisation up-plunge with two new RC drill intersections outside the current Mineral Resource boundary.

Data source: MGV update

The Waratah trend is located ~400m east of Break of Day. As per the interpretation, the trend extends for more than 4km of strike with gold mineralisation defined in at least two separate zones of ~250m in individual strike.

RC drill assays at Waratah (Data source: MGV update)

Musgrave making speedy progress across tenements

Musgrave is currently focused on finalising a Stage 1 Pre-feasibility Study by the end of Q1. The study aims to define the technical and financial viability of the initial years of the Western Australian project, where the current MRE stands at 12.3 million tonnes @ 2.3 grams per tonne of gold for 927k ounces gold. The study is focused on the current Indicated Mineral Resources of the project.

The company intends to continue exploration and drilling activities for resource conversion, targeted towards mine life extension beyond the first stage.

Meanwhile, Musgrave has outlined activities across its wholly owned tenements. The company expects to receive diamond drilling assay results for geotechnical holes at Big Sky, Lena, White Heat and Break of Day by mid-March, while RC drill hole assays for Leviticus are anticipated in April.

The company has also initiated RC drilling of new targets to grow the current resource base through discovery.

The company is set to commence a new regional aircore drilling program on new target areas at Cue by the end of this month. Also, RC follow-up drilling of the new Break of Day North mineralisation is expected to begin in three weeks.