Australian gold and base explorer, Musgrave Minerals Limited (ASX: MGV) continues to capitalise on its exploration strengths and accelerate drilling programs across a range of high priority targets at its Cue gold Project which is located in the well-endowed, gold producing Murchison region of Western Australia.
Musgrave’s exploration programs till now have helped it to achieve its main objective of significantly growing its gold resources through its exploration programs at Break of Day, Mainland, Lena and Lake Austin North.
Lena Mineral Resource More Than Doubles
Musgrave has reported a significant resource update at its 100% owned Lena gold deposit, one of the high priority targets at Cue, wherein the company advised that it has added 1,72,000 ounces of gold at Lena deposit, with the Mineral Resource now growing to 4.3Mt @ 2.3g/t Au for 325,000 ounces of contained gold.
The updated Mineral Resource represents 112% increase in total contained ounces at Lena and 28% improvement of the overall grade of the deposit. Further, it also delivers 72% increase in Indicated Resources to 121,000 ounces gold.
The update includes the results of highly successful reverse circulation and diamond drilling programs completed over the past six months.
The updated total Inferred and Indicated Mineral Resources for the Cue Project, including the Break of Day and Lena deposits along with numerous smaller deposits, now totals at 6.45Mt @ 3.0g/t Au for 613k contained gold ounces.
It is to be noted that reported Mineral Resource for the Lena deposit has increased substantially since the last estimate in 2017, mainly due to the greater depth extent of the current model, a number of high grade intersections in the deeper lodes in the recent drilling and more constrained interpretation methodology to better define the lodes at depth.
Current Drilling Programs
Musgrave is present undertaking drilling at Break of Day and recent results demonstrate significant intercepts including 45m @ 11.8g/t Au related to ‘link lodes’ that have not yet been integrated into the total resource. Assays from the Break of Day drilling program are anticipated by mid-March.
Following this, the company intends to move to Mainland (also a high priority target), to undertake further drilling at Consols where high-grade gold has been intersected near surface. Both the drilling programs at Break of Day and Mainland will consist of around 14 holes for over 2,000m with first assays expected to arrive early in March 2020.
With the ongoing drilling at the Mainland-Consols and high-grade Break of Day deposits, the company anticipates more exciting results.
As announced on 5 February 2020, an aircore drilling at Lake Austin has recently been started as part of the Musgrave’s Earn-in and Exploration Joint Venture with Evolution Mining Ltd (ASX:EVN) , as per which four target areas and the bedrock interface in various drill holes will be tested to know the true gold potential of this area. EVN will be funding the drilling program.
Musgrave’s another joint venture partner Cyprium Australia Pty Ltd, which has non-gold rights over the northern base metal tenements at the Cue Project, has completed extensional and infill drilling at Hollandaire during the last quarter with a highlight infill intercept of 10.4m @ 14.9% Cu from 84.5m (19HOMET003) in an infill drill hole for metallurgical test work, including 4.5m @ 21.9% Cu, 1.2g/t Au and 46.4g/t Ag from 90.4m.
Along with the exploration success, Musgrave continues to expand the wealth of its shareholders as its stock price has risen by around 44% in the past three months.
By AEDT 2:27 PM on 17 February 2020, MGV stock was trading at $0.105, up 7.143% intraday, with a market cap of around $42 million.