- Impressive intersections at Starlight are expected to positively impact the resource update of Break of Day, due in late Q3 2020.
- The discoveries seem to be enriching the positioning of Cue Project given the potentially attractive gold scenario amidst COVID crisis.
- While RC drilling is ongoing, market participants may gauge the progress of Diamond Drilling expected to commence next week.
Australian yellow metal explorer, Musgrave Minerals Ltd (ASX: MGV) further gained market attention by reporting striking assay results for the first twelve Reverse Circulation (RC) drill holes at flagship Cue Gold Project. The ongoing exploration program at the new Starlight gold discovery returned robust near-surface gold assay results.
The drilling is geared towards extending and infilling the new high-grade lode where high-grade Starlight mineralisation has been intersected over a strike length of more than 115 metres and remains open down dip.
MGV stock settled the day’s trade 73% up to $0.260 on 3 June 2020 following the significant mineralisation update.
Referring the results as a great start to the program, Musgrave Managing Director Rob Waugh indicated that the intersection “confirms the current model extending the mineralisation both up dip where it approaches the surface and down dip where it remains open”. He also asserted that while the bonanza high-grade, near-surface mineralisation would accentuate the deposit’s open cut development potential, the deeper mineralisation would augment its underground potential.
RC Drilling Program Marks 60% Completion
The ongoing RC Drilling Program is undertaken at the new Starlight Link-lode at Break of Day deposit which is located at Musgrave’s wholly owned ground at Cue Project in WA’s Murchison District. Notably, the RC program consisting of more than 36 holes for ~7, 000 metres is approximately 60% complete.
Significantly, the intersections in all drill holes sit outside but interpreted to lie proximal to the current resource at Break of Day, within an east-west mineralised zone.
The mineralisation comprises of multiple quartz lodes dipping steeply to the south and has now been defined over a 115 metres strike extent and remains open down plunge. Besides, extremely high-grade mineralisation is shown by the new drilling where it approaches the surface.
Aiding with Starlight’s ongoing assessment, Musgrave is expected to receive $150,000 as its application was successful for a grant under the Western Australian Government’s 2020-21 Exploration Incentive Scheme (EIS). The fund, as part of the EIS’s Co-funded Drilling Program, is directed towards diamond drilling deep extensions to the mineralisation.
Lens Through the Results
A combination of one-metre individual samples and six-metre composites have been analysed from the RC holes drilled in the ongoing Starlight Program. All 6 metre composite samples above 0.1g/t Au will be re-submitted for individual 1 metre sample analysis.
Significant Intercepts include:
- 20MORC033- 12m @ 112.9g/t Au from 36m, including 6m @ 143.0g/t Au from 42m
- 20MORC032- 48m @ 4.4g/t Au from 30m, including 4m @ 41.8g/t Au from 30m, and 2m @ 13.5g/t Au from 76m
- 20MORC025- 7m @ 13.7g/t Au from 114m, including 4m @ 22.9g/t Au from 116m
- 20MORC021- 6m @ 5.7g/t Au from 81m
- 20MORC022- 6m @ 5.2g/t Au from 176m
Currently, Break of Day deposit contributes 868Kt @ 7.2g/t Au for 199koz contained gold to the total resource of 6.45Mt @ 3.0g/t Au for 613koz hosted by the Cue Gold project. The Cue project also includes 4,3Mt @ 2.3g/t Au for 325koz contained gold from Lena Deposit which is located 130 metres to the west.
Musgrave 100% tenements
- Follow-up drilling is underway at Break of Day’s new Starlight link-lode.
- 60% completion of initial RC drilling with further assays expected within two weeks.
- Commencement of diamond drilling program at Starlight due next week.
- Break of Day’s resource update scheduled for late Q3, 2020.
The regional aircore geochemical drilling program (phase 1) on Lake Austin completed. Results to be reported on receipt of final assays.
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