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Australian Gold explorer Musgrave Minerals Limited (ASX:MGV) reported a significant exploration upside concerning the Reverse Circulation (RC) drilling at 100% owned Break of Day’s Starlight Link-Lode on its flagship Cue Project.
Adding richness to its portfolio, the assays from one-metre re-samples of six metres composites have confirmed high-grade gold results at Break of Day from the Starlight and Twilight lodes.
Following the announcement, MGV stock surged ~ 8.7% to $0.125 on 21 April 2020.
The drilling success at Break of Day, Lena and Lake Austin North has validated the company’s ability to further extend its existing drilling potential while discovering new gold deposits within the project area.
Musgrave’s Cue Project is located in the WA’s Murchison district, and hosts total mineral resource of 6.45Mt @ 3.0g/t gold for 613,000oz contained gold. Notably, the recent high-grade results would further bolster the resource growth for the company.
ALSO READ: Another Notch on Musgrave’s Belt: High-Grade Assays Noted at Break of Day in RC Drilling
RC Drilling Program at Break of Day
Musgrave undertook the RC drilling program centred at new high-grade link-lode where the mineralisation has been confirmed over a strike length of more than 100 metres, while the high-grade mineralisation remains open to the west and down dip.
The Break of Day’s recent drilling program consisted of 13 holes for 2,490 metres. While the company has previously reported the composite assays for all the holes, the receipt of the one-metre individual samples of the composite intervals has been confirmed by the recent results.
Significant results from new one metre individual samples at Starlight include:
- 20MORC001- 3m @ 118.4g/t Au from 72m, including 1m @ 351.2g/t Au from 73m
- 20MORC001- 4m @ 10.3g/t Au from 225m
- 20MORC004- 17m @ 3.7g/t Au from 19m, including 9m @ 5.1g/t Au from 21m
- 20MORC015- 55m @ 2.8g/t Au from 97m, including 1m @ 61.4g/t Au from 97m and 8m @ 9.2g/t Au from 127m
Significantly, all the intersections returned from Starlight lies outside of current Break of Day’s resource. Many drill holes also intersected the Twilight lode’s southern extension, which is also outside the current resource boundary.
Furthermore, Twilight lode has been further extended to 100m south of the existing Break of Day resource by the drilling, as reported by the company earlier. The significant intercepts include:
- 20MORC001- 3m @ 118.4g/t Au from 72m, including 1m @ 351.2g/t Au from 73m
- 20MORC003- 1m @ 6.3g/t Au from 182m
- 20MORC004- 17m @ 3.7g/t Au from 19m, including 9m @ 5.1g/t Au from 21m
Ongoing Exploration and Plans
Musgrave 100% tenements: Further program of follow-up drilling at Break of Day on the new Starlight link-lode is scheduled for early May. This, along with the diamond drilling program, will be completed together ahead of an anticipated resource update for the deposit in late Q3, 2020
Evolution JV: The regional aircore geochemical drilling program on Lake Austin is advancing well. The company would report the results post the program completion and final essays receipt.
Stock Performance
By the end of the trading session on 21 April 2020, MGV closed at $0.125, up by 8.69% intraday. The stock has generated a positive return of 49.35% and 79.69% in the past six months and one year respectively, and likewise, on a year-to-date basis, it has shown an increase by 26.37%.
