Another Exciting Discovery For Musgrave Minerals: New Gold Lode Identified Within Break Of Day

Summary

• The newly discovered gold lode known as ‘White Light’ is striking parallel to the Starlight gold lode and sits ~75 metres to the south.
• The Break of Day RC drill program has been extended following the second lode discovery, which along with Starlight returned intersections outside the current resource boundary of Break of Day.
• New White Light and Starlight lodes would underpin resource update planned in late Q3 2020 for Break of Day.

Staying ahead of the curve, Australian Gold explorer Musgrave Minerals Limited (ASX:MGV) appears to behold significant developments, fostering the robustness of its 100% owned Cue Gold Project based in Western Australian Murchison district.

Reverse circulation (RC) drilling, continuing to reinforce Starlight discovery, has also confirmed a new gold lode named “White Light”, which is approximately 75 metres to the south and strikes parallel to Starlight.

The new lode confirmed from RC drilling with new intercepts aligning with several historical isolated gold intersections has a strike extent of over 100 metres. Notably, the intersections of both Starlight and White Light lodes sit outside the existing Break of Day resource and remain open to the southeast and down plunge where drilling is continuing.

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The high-grade gold intersection along with the exciting discoveries from Starlight seems to be bolstering the strategic gold-centric endeavours of the company. Commenting on the recent discovery, Musgrave Managing Director Rob Waugh indicated it to be another positive result for Musgrave as it moves ahead to build the high-grade gold resource base at its Cue Project.

He further stated that as the drilling is continuing, the company is confident of extending the lodes and making discoveries on the back of growing geological knowledge of the system.

Following the new White Light discovery, the company has extended its RC drill program, eyeing for a resource update late in Q3 2020.

Glimpse at the Break of Day RC Drilling Program

Musgrave Minerals is advancing well with ongoing drilling at Starlight and White Light lodes, stationed at Break of Day on the company’s flagship Cue Gold Project. The Starlight and White Light mineralised gold lodes lie in proximity to the existing Break of Day resource within separate southeast-northwest parallel mineralised zones.

The mineralisation typically dipping steeply to the south consists of quartz lodes, hosted within a foliated and altered basaltic stratigraphic sequence.

The ongoing drilling at both lodes have a focus on infilling and extending the high-grade gold mineralisation and will also pursue testing for new lodes within the Break of Day and Lena system.

The current RC drilling program, which thus far has completed a total of 42 RC holes with assay results for 31 holes received, has been extended following the discovery of the new White Light lode.

One metre individual sample for drill holes up to 20MORC038 has been obtained with composite assays received for RC holes up to 20MORC051. Up until now, three diamond drill hole tails have been completed with assays pending.

Musgrave expects further assays within two weeks.

Recent Drilling Results

Analysis has been carried out for a combination of six-metre composites and one-metre individual samples from the RC holes drilled in the current program. The high-grade gold results at Starlight has been confirmed by one-metre individual samples assays, which are received for previously reported intersections based on six-metre composites.

Musgrave reported assay results for an additional 12 RC drill holes from the existing program at the new Break of Day-based new Starlight gold discovery. The company will resubmit all 6m composite samples above 0.1g/t Au for individual 1m sample analysis. The significant new intercepts include:

Starlight lode

• 20MORC040- 6m @ 35.8g/t Au from 131m
• 20MORC048- 5m @ 7.2g/t Au from 230m

White Light lode

• 20MORC050- 6m @ 54.4g/t Au from 211m
• 20MORC048- 6m @ 5.4g/t Au from 111m
• 20MORC004- 9m @ 5.1g/t Au from 21m

Notably, the new mineralised intercepts at White Light align with several previously reported intercepts.

Road Ahead

Musgrave 100% tenements

• Musgrave continues to progress with the follow-up drilling on the Starlight lode at Break of Day. The initial RC drilling at present is 90% completed, while further assays expected within two weeks.
• The company will commence further drilling next week on the newly discovered White Light lode at Break of Day.
• The diamond drilling program at Starlight for testing depth extensions to the mineralisation is advancing well with first assays expected in four weeks.
• Musgrave has planned a resource update for Break of Day which would include Starlight and White Light for late Q3 2020

Evolution JV

• The FY20-21 budget has been approved by Evolution, and the Phase 2 follow-up aircore drilling of high-priority gold targets is slated to start in late July 2020.

MGV stock closed at $0.460 on 29 June 2020, noting the return of 540% in the last three months.