Australian gold and base metals explorer, Musgrave Minerals Limited (ASX: MGV) has resumed reverse circulation (RC) drilling at Break of Day, one of the high priority targets of the company’s Cue Gold Project located in Western Australia’s Murchison district.
In an update provided on 30 January 2020, MGV announced that it has commenced drilling at Break of Day focussed on confirming the new ‘link-lode’ hypothesis and testing for possible additional ‘link-lodes’ along the strike of the Break of Day resource.
Following this, the company intends to move the rig to Mainland (also a high priority target of Cue Gold), to undertake further drilling at Consols where high-grade gold has been intersected near surface.
Both the drilling programs at Break of Day and Mainland will consist of around 14 holes for over 2,000m, with first assays expected to arrive early in March 2020.
Prospect location plan (Source: Company’s Report)
The company continues to receive encouraging findings from its exploration program at Cue Gold.
Around two weeks back, MGV had reported high-grade gold results from RC drilling at Lena and individual one metre resamples from drilling at Break of Day and Mainland.
The encouraging Lena results confirmed the geological interpretation showing good continuity of the high-grade shoots at depth. While, the upside potential of the Mainland to host new high-grade gold mineralisation was also highlighted.
Besides, as per the company, this new drilling at Break of Day has the potential to result in resource update at Break of Day in the second quarter of 2020.
It is to be noted that, the Mainland, Break of Day and Lena areas are excluded from the Earn-in and Exploration Joint Venture with Evolution Mining Ltd (ASX: EVN) , and Musgrave holds the rights of these areas.
Previous RC Drilling at Break of Day
As announced on 3 December 2019, the RC drill program at Break of Day which consisted of 6 holes for 786m has extended the high-grade gold mineralisation to the south and identified a new high-grade ‘link-lode’ structure between the two main Twilight and Velvet gold lodes.
Notably, Drill hole 19MORC037 intersected an interpreted linking structure assaying 45m @ 11.8g/t Au from 144m down hole, including 5m @ 29.2g/t Au from 150m and 23m @ 16.2g/t Au from 166m.
MGV believes that the current follow-up drill program will confirm the strike, grade and extent of the “link-lode” intersected in 19MORC037 and also test for possible parallel ‘linklodes’ along the Break of Day system.
Mainland Previous Results
At Mainland, the high-grade Consols mineralization has been defined over a strike extent of ~ 40m and is currently open along strike and down dip.
Notable results received till now include:
- 3m @ 38.2g/t Au from 113m down hole (19MORC018), including 1m @ 102.5g/t Au from 114m
- 2m @ 55.4g/t Au from 52m down hole (19MORC0198), including o 1m @ 108.3g/t Au from 52m
According to Musgrave, the current follow-up drill program at this target is designed to confirm the strike and extent of the high-grade gold mineralisation at Consols.
Upcoming News Flow
- MGV is progressing towards delivering a Lena resource update later in the first quarter of 2020;
- Diamond drilling on the Evolution JV at Lake Austin North was temporarily halted for the Christmas break but re-commenced in January with assay results expected in March 2020;
- On the broader JV area over Lake Austin at Cue, Evolution and Musgrave are planning a large aircore drilling program to further define gold targets for basement drill testing. This drilling is scheduled to commence in early February 2020;
- First assay results from RC drilling of the ‘link-lode’ position at Break of Day and on the Consols target at Mainland are expected in March 2020.
Cue Copper Project Update
While the company continues to make progress in relation to the development of Cue Gold Project, it has also achieved substantial exploration success at Cue Copper Project as a result of the works conducted by its Joint venture partner Cyprium Metals Limited (CYM).
At the Hollandaire prospect of Cue Copper project, CYM recently intersected a significant extensional mineralisation that is 18.0 metres thick in drillhole 19HORC029 from 295m downhole including:
- 12.0m @ 2.74% Cu with 0.61 g/t Au and 6.75 g/t Ag from 295m
- 8.0m @ 3.63% Cu with 0.84 g/t Au and 8.94 g/t Ag from 296m
- 3.0m @ 6.10% Cu with 2.61 g/t Au and 16.25 g/t Ag from 296m
Stock Performance
On the stock price front, MGV has provided a return of over 18% to its shareholders in the last three months. Today, the stock price witnessed an uplift of 4.5%, following the key drilling update. At market close, the stock was trading at $0.092.
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