Musgrave Reports Promising Assays from Aircore Drill Program at Lake Austin; Stock Soars

Summary

• Musgrave has reported encouraging assays from the regional scout aircore drilling program recently finalised on Lake Austin at Cue Project.
• The results have bolstered Musgrave’s exploration model for a large mineralised gold system beneath Lake Austin, extending Lake Austin North’s gold anomalism to over 5.5km of strike.
• The aircore drilling program has also identified multiple high-priority basement gold targets for follow-up drill testing, along with robust regolith gold halos for targets at West Island and Mainland East.
• Musgrave intends to commence Phase 2 scout drilling on Lake Austin in late-July 2020 and diamond drilling program at Starlight by next week.

In a significant development, Australian-headquartered mineral explorer Musgrave Minerals Ltd (ASX:MGV) has unveiled encouraging assays from the regional scout aircore drilling program conducted on Lake Austin at its flagship Cue Project in Murchison district. The Phase 1 aircore drilling program, comprising of 249 holes for 22,879m on Lake Austin, was recently completed on the Evolution Joint Venture over Lake Austin.

Musgrave and Evolution executed $18 million Earn-in and Exploration JV over Lake Austin portion of the Cue Project in September 2019 and commenced aircore drilling as part of JV in February this year. The aim of the aircore drilling program was to secure geochemical and geological information to combine geophysical data and offer vectors for basement drilling.

As expected, the drilling program turned out to be successful, with significant composite gold assays attained by the Company.

MGV closed the trading session at $0.240, with a rise of 02.13 per cent on 5 June 2020.

Significant Assays Achieved at Lake Austin North

Validating potential for a large mineralised gold system, the aircore drilling results have extended the Lake Austin North gold anomalism to a strike of over 5.5km, where it stays open to both south-west and the north. The Company notified that this extensive gold regolith ‘halo’ chases the tonalite-mafic contact beside Lena-Break of Day shear corridor.

Significant results attained at Lake Austin North, include:

• 6m @ 4.2g/t Au from 116m (20MOAC031), including 1m @ 18.2g/t Au from 117m
• 9m @ 2.25g/t Au from 136m to EOH (20MOAC041)
• 13m @ 0.53g/t Au from 128m to EOH (20MOAC248)
• 20m @ 0.30g/t Au from 130m (20MOAC023)
• 28m @ 0.29g/t Au from 96m to EOH (20MOAC032)

It is imperative to note that the aircore drilling program also produced multiple high-priority basement gold targets for follow-up drill testing.

New Anomalies Identified at West Island and Mainland East

Aircore drilling assays have also identified robust regolith gold halos for targets at West Island and Mainland East. The regolith gold target has been extended to over 2.3km in strike at West Island within a dominantly doleritic regolith host sequence, while a regolith gold anomaly has been defined with over 1km of strike at the Mainland East target within a dominantly mafic sequence.

Musgrave has reported the following significant results at West Island and Mainland East:

• West Island
  • 2m @ 1.52g/t Au from 47m to EOH (20MOAC084)
  • 3m @ 1.15g/t Au from 99m to EOH (20MOAC095)
  • 34m @ 0.28g/t Au from 93m to EOH (20MOAC112)
  • 28m @ 0.32g/t Au from 112m (20MOAC238)

• Mainland East
  • 4m @ 0.76g/t Au from 66m (20MOAC164)
  • 4m @ 0.18g/t Au from 8m to EOH (20MOAC145)

Way Ahead

Though Musgrave has achieved all composite gold assays from aircore drilling program, the Company is waiting for complete multi-element analyses of end of hole samples. Moreover, it is now planning to commence Phase 2 follow-up aircore drilling of high priority gold targets on Lake Austin in late July 2020. The Company will evaluate diamond drill testing of selected targets after the finalisation of Phase 2 aircore program.

In addition to Lake Austin, Musgrave is also progressing with drilling activities at other areas within the Cue Project. The Company is continuing follow-up drilling on the new Starlight link-lode at Break of Day. It has already finalised ~70 per cent of RC drilling and is likely to report further assays within two weeks.

While a diamond drilling program at Starlight is scheduled to commence next week, a resource update for Break of Day is planned for late Q3, 2020.