Musgrave Welcomes Glittering Hopes As High Grade Gold Intersected Link-Lode At Break Of Day; Stock Soars

  • Feb 28, 2020 AEDT
  • Team Kalkine
Musgrave Welcomes Glittering Hopes As High Grade Gold Intersected Link-Lode At Break Of Day; Stock Soars

The Australian Explorer, Musgrave Minerals Limited (ASX: MGV) is witnessing a positive nudge to its existing exploration program at the 100% owned Break of day deposit, as the Reverse Circulation (RC) drilling delivered high-grade gold results. The Cue Gold Project, which is Musgrave’s flagship project in WA’s Murchison district, hosts these exciting deposits.

As per the company, first follow up drill hole confirmed the high-grade link-lode position at Break of Day, intersecting 6m @ 51.7g/t Au from 228m down hole (20MORC001).

The geological interpretation is reinforced through the positive results at the Break of Day. Meanwhile, link-lode remains open in all directions since the down dip, East and west limits of the lode remain undefined.

The possibility of the presence of the other linking structures in the region would consequentially open a sizeable new search space for exploration. Identification of the high-grade ‘link-lode’ structure holds significance owing to its potential to add high-grade gold ounces to the resource without the necessity for deeper drill.

Drilling Results at Break of Day

The Break of Day gold deposit consists of the resource of 868kT @ 7.2g/t Au for 199koz contained gold. The resource estimate for the Break of the day is based on Twilight and Velvet, which are two sub-paralled quartz vein lodes.

The vein lodes remain open at depth and to the south where the drilling program at the southern end of Break of Day and outside the current resource boundary has earlier intersected:

  • 3m @7.2g/t Au from 128m (19MORC031)
  • 3m @ 13.9g/t Au from 53m (19MORC017)

The previous discovery of the new link-lode intersected 45m @ 11.8g/t Au (19MORC037) at Break of Day has the potential to further enhance the resource through further drilling.

Latest RC Drilling Results

The first follow-up drill hole in the recent program (20MORC001) confirmed the high-grade link-lode at 228m down hole and returned 6m @ 51.7g/t Au.

Moreover, drilling through the Twilight Lode outside the current resource boundary and in the previously untested locations intersected:

  • 20MORC001 intersected the Twilight Lode- 6m @ 81.7g/t Au from 72m down hole
  • 20MORC002 intersected the Velvet Lode- 2m @ 7.8g/t Au from 61m
  • 20MORC004 intersected the Twilight Lode- 18m @ 3.0g/t Au from 18m

The assay results of the current drilling program from further eight holes is expected in late March 2020.

About Cue Project

The Cue Project incorporates the gold exploration program in the Murchison district of Western Australia for deposits such as Lake Austin North, Break of Day, Mainland and Lena.

The project hosts the total resource of 6.45Mt @ 3.0g/t gold, incorporating Lena’s mineral resource of 4.3Mt @ 2.3g/t gold for 325,000 ounces of contained gold.

Over the Lake Austin portion, a Joint venture with Evolution Mining Ltd (ASX: EVN) has been executed by Musgrave.

Moreover, Cyprium Australia Pty Ltd has acquired 80% interest in the non-gold rights at Cue’s Northern Tenure, with Musgrave retaining 20% free-carried interest alongside the 100% of the gold rights.

Ongoing Exploration by Musgrave Minerals

  • Assay results testing the new ‘link-lode’ position from the eight remaining RC drill holes at Break of Day are expected in next three weeks.
  • Follow-up RC and diamond drilling at Break of Day on the new link-lode is currently being planned and would resume in April.
  • A resource update will be scheduled for early Q3, 2020, if the follow-up drilling on the new link-lode at Break of Day is successful.
  • The first assays of the six drill holes at Console’s high-grade gold discovery are expected in mid-March 2020.
  • The assay results from the Lake Austin North’s initial diamond drilling program are awaited.
  • First assays of the regional aircore drilling program on Lake Austin is expected in April 2020.

Stock Update

On 28 February 2020, MGV’s shares traded at $0.100, up by 4.17%. Notably, for the past three and six months, the share price have risen by 28% and 26.32% respectively.

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