'The rush for Australian gold, which so excited the world, has never ended'’ - Geoffrey Blainey AC
Australia - one of the largest exporters of Gold in the world has been hosting various gold mines spread all over the country. Its modern gold mining industry is at the heart of the global gold resurgence, making it the key player in the global gold industry. Western Australia’s several goldfields, nearly all standing in arid terrain, have dominated the Gold industry for more than a century. This is a reason why miners with holdings in this region are viewed quite positively.
Let us look at the growth story of an Australian Gold explorer which holds significant land in the Western Australia region - Musgrave Minerals Limited.
The Cue Project is located in the Western Australia’s Murchison Province where Musgrave holds 100% of the key project tenure. Musgrave has an estimated 440koz of gold in resources on the Cue Project and is focussed on maximising its exploration strengths and accelerate drilling across high priority targets including Mainland, Lena, Break of Day and Lake Austin North.
2019 Exploration Flashback – Cue Gold
Last year was an extremely happening year for Musgrave as it continued to experience success with its 2019 exploration programs. Major highlight of these programs was the discovery of extensive gold mineralisation under transported cover at Lake Austin North and the divestment of the base metal interests on its northern Cue tenements.
Musgrave’s success is demonstrated by below timeline of events at Cue Gold:
- In March 2019, the company entered into an option agreement to acquire 100% of the non-alluvial gold rights to the Mainland Project in the Cue region;
- In July 2019, the company commenced drilling at the newly acquired Mainland Prospect;
- In August 2019, high-Grade Gold was intersected at Lena and Mainland;
- In September 2019, Musgrave entered into an Earn-In and Joint Venture Exploration Agreement with Evolution Mining Limited (ASX: EVN) over a select area of Lake Austin and surrounds (of the Cue Project in the Murchison District of Western Australia;
- In September 2019, high-grade gold intersected at Lena below existing resource
- In October 2019, high-grade gold intersected at Break of Day with ultra-high-grade rock-chip sample from Mainland;
- In November 2019, high-grade gold intersected in drilling at Mainland;
- In December 2019, new high-grade ‘link-lode’ intersected at Break of Day, opening possibilities and opportunities to discover additional lodes and grow the Break of Day resource.
Cue Copper - Completed Work Program 2019
Meanwhile, the company’s Joint venture partner Cyprium continued to explore copper resources at Cue.
In February 2019, MGV executed a Binding Agreement with Cyprium Australia pertaining to a JV and earn-in on the non-gold rights over the northern tenements at the Cue Project. Further, the year saw following developments-
- Hollandaire resource extension phase 1 of 4,038 metres of RC drilling - assays received
- Hollandaire metallurgical 330 metres diamond drilling - assays received
- Twinned diamond and RC holes to check the mineralised intersections - completed
- Regional geochemical sampling program - commenced
- Eelya South RC Drilling Phase 1 and Phase 2 for 1,138 metres - completed
- Metallurgical test work with copper leaching occurring in first column at room temperature within one hour – underway
Casting Eye on 2020 News Flow
Investors and shareholders are keenly eyeing below updates at the Cue Gold this year-
- MGV expects to deliver a Lena resource update in Q1 2020;
- Assay results from Diamond drilling on the Evolution JV at Lake Austin North expected in February 2020;
- On the broader JV area over Lake Austin at Cue, Evolution and Musgrave are planning to do a large aircore drilling program in Q1 2020;
- Further follow-up RC drilling at Mainland is currently being planned for early Q1 2020;
- Follow-up drilling of possible link-lodes at Break of Day is planned for Q1 2020 leading towards a resource update in Q2 2020.
Entering into 2020, the company intends to maintain its focus on significantly growing its gold resources through extensional and greenfield exploration drilling and is confident that its current resource figure of 440koz of gold will grow significantly.
Further, below mentioned is the Cyprium’s Exploration Plan for the New Year:
- Further column tests have commenced, and results expected early 2020;
- Metallurgical diagnostic testing results expected;
- Regional targets assay results to be received from January 2020;
- Follow up downhole geophysics to be conducted as drilling progresses;
- Resource evaluation update to JORC Code 2012 to be completed in 2020;
- Follow up drilling at Hollandaire, Hollandaire West, Eelya South and Rapier West;
- Drilling regional targets at Mount Eelya and Colonel.
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