All praises for the Australian gold explorer Musgrave Minerals Limited (ASX:MGV) that has confirmed additional high-grade gold at Break of Day deposit on its flagship Cue Gold Project.
In a significant development, Musgrave has recently reported further high-grade gold assay results from its reverse circulation (RC) drilling program at the wholly owned Starlight Link-Lode (at Break of Day) on the Cue Project.
The Company has released the assay results and drill collars for the final four Break of Day RC drill holes, drilled as a part of RC drilling program consisting of 13 holes for 2,490m.
Post the key update, MGV’s stock rallied ~7.9 per cent to $0.096 on 1st April 2020.
Below table summarises the assay results received for a further four RC drill holes, which includes three from the Starlight Link-Lode:
Note: The portion highlighted in pink colour represent significant assays from the latest drilling results.
Ins and Outs of RC Drilling Program
Musgrave’s RC drilling program has been conducted to test the new high-grade link-lode (Starlight) at the Break of Day deposit, which currently has a resource of 868Kt @ 7.2g/t Au for 199koz contained gold.
At present, the Break of Day resource estimate is based on two sub-parallel quartz vein lodes (Velvet and Twilight) and does not include the results from the new Starlight Link-Lode. The Company believes that the Starlight Link-Lode structure holds the potential to augment high-grade, shallow gold ounces to the existing resource.
Moreover, the Company expects the presence of other linking structures within the region which will unlock a new large search space for exploration and improve the likelihood of expanding the resource base.
All the intersections returned from Starlight Link-Lode stand outside the existing resource boundary.
Additionally, the latest results haveconfirmed the Starlight Link-Lode over a strike length of 100m, with the high-grade mineralisation remaining open to the west and down-dip.
The recent drilling results are in line with the Company’s previously reported assays for the other nine holes drilled as part of the RC drilling program. Below table summarises the previous RC drill assay intervals from Break of Day:
The Company notified that the Starlight mineralisation remains open up and down dip but is yet to be drill tested near surface.
Musgrave has planned to commence a further program of follow-up RC drilling in May 2020, assuming no exploration drilling restrictions regarding the COVID-19 pandemic are currently in place. The Company will finalise this follow-up drilling along with a diamond drilling program before the resource update for Break of Day,which is planned for Q3 2020.
Moreover, the Company is awaiting one metre re-assay of some anomalous four and six metre composite samples, which will be reported on receipt.
Besides focussing on its wholly owned Starlight Link-Lode at Break of Day, the Company will also emphasize on the Evolution Mining (ASX:EVN) funded joint venture over Lake Austin in the near-term. As per the company, the regional aircore drilling program is progressing well on Lake Austin, with 138 holes completed for 14,382m to date.
The Company also informed that the four diamond drill holes for 1,578.3m over four separate targets identified by Archaean regolith gold anomalies in aircore drilling program have been completed and their results will be reported following the completion of assays.
In addition to these ongoing exploration activities, the Company is progressing with on going regional soil geochemical sampling at Mainland to delineate additional targets for drill testing.
Musgrave is ideally positioned to complete its planned exploration activities on time, supported by a strong cash position and a highly efficient leadership team. The Company’s speedy progress noted in finalisation of the RC drilling program validates the potential for the same.
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