Australian gold and base metals explorer Musgrave Minerals Limited (ASX: MGV) has kickstarted 2020 on a positive note amidst soaring gold prices owing to global geo-political tensions, along with the announcement of high-grade gold results from reverse circulation drilling at Lena - one of the high priority targets of Cue Gold Project located in Western Australia’s Murchison district.
In an announcement made on 13 January 2020, Musgrave announced that it has discovered more grade gold results at Lena and individual one metre re-samples from drilling at Break of Day and Mainland.
Consequently, MGV stock price witnessed a positive lift of 3.53% during the intraday trade.
It is to be noted that all three targets - Lena, Break of Day and Mainland are not part of the Evolution Joint Venture which was signed in September 2019.
The RC drill programs at all these targets consisted of a combined 29 holes for 3,568m. The company has now received final assays for this drilling with high-grade results across all three prospect areas.
The high-grade gold shoots at Lena new intercepts include:
- 5m @ 12.1g/t Au from 82m (19MORC039) including 2m @ 28.3g/t Au from 82m, within a broader interval of 46m @ 1.5g/t Au from 82m to EOH
- 9m @ 6.4g/t Au from 116m down hole (19MORC041) including 2m @ 22.3g/t Au from 121m
- 3m @ 5.4g/t Au from 113m down hole (19MORC042)
The positive results from Lena are confirming the geological interpretation which is showing good continuity of the high-grade shoots at depth and will further enhance the resource update expected later in Q1 2020.
In addition to the above, one metre re-samples have returned:
- Mainland- Consols
3m @ 38.2g/t Au from 113m down hole (19MORC018) including 1m @ 102.5g/t Au from 114m
- Break of Day
3m @ 7.2g/t Au from 128m down hole (19MORC031)
At Mainland, the positive high-grade gold results at the Consols prospect remain open to the north-east, south-west and down plunge where further drilling is planned to commence next month.
At Break of Day, the identification of the potential high-grade ‘link-lode’ structure could be significant with further drilling planned for late January 2020. It is to be noted that this is a critical step in understanding the upside potential of this linking structure. If things proceed well, this new drilling at Break of Day could lead to a Break of Day resource update in Q2, 2020.
MGV Ongoing Exploration at Cue Gold
- Musgrave is planning to deliver a Lena resource update later in Q1 2020;
- Diamond drilling on the Evolution JV at Lake Austin North is progressing well;
- Following the Christmas break, the drilling has re-commenced at Lake Austin North and will continue through to late January. The assay results are expected to arrive in March 2020;
- On the broader JV area over Lake Austin at Cue, Evolution and Musgrave are planning a large aircore drilling program in early February 2020 to further define gold targets for basement drill testing;
- Follow-up drilling of the possible ‘link-lode’ at Break of Day is scheduled to commence in late January 2020 and if successful, will enable a possible resource update in Q2 2020;
- Further follow-up RC drilling at Mainland on the Consols target is scheduled to commence in February 2020.
MGV stock was trading at a price of $0.088 with a market cap of around $34.46 million on 13 January 2020.
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