Musgrave’s Exploration Endeavours Hit Bonanza Near Surface Gold at Starlight, Stock Zooms Up

Summary

• Starlight’s near surface bonanza grade gold results are expected to strengthen resource update at Break of Day due in late Q3 2020.
• The recent drilling success sits well with the attractive commodity market scenario for gold amidst the unprecedented crisis.
• With ongoing RC drilling, Diamond Drilling is expected to commence this week.

Advancing well with its exploration at the new Starlight discovery, Musgrave Minerals Limited (ASX: MGV) further exhibited impressive drilling results concerning its flagship Cue Project. The assay results, for a further seven reverse circulation (RC) drill holes from the current Starlight-centric program, demonstrated remarkable bonanza grade gold in the near-surface drilling. 

Notably, MGV stock soared ~29% on 9 June 2020 following the significant update.

The Starlight link-lode at the Break of Day deposit is located on the company’s 100% owned ground at its flagship Cue Gold Project in Western Australia’s Murchison district.

The latest results follow the previous striking high-grade intersections at the Starlight discovery which the company witnessed last week. The series of high-grade gold results at Starlight has stimulated the attractiveness of the Cue Gold Project, while also increasing the robust resource potential at the Break of Day deposit. 

Musgrave’s Managing Director, Mr Rob Waugh highlighted the latest result as “amazing gold grades” to witness in near-surface drilling. He pointed that the deepest holes currently at 200 vertical metres still lie in high-grade mineralisation where Starlight remains open down dip. Mr Waugh believes that the bonanza grades near-surface is expected to have a considerable impact on Break of Day’s future development.

Outstanding Drilling Results 

The drilling is focused on infilling and extension of new high-grade Starlight lode where mineralisation consisting of multiple quartz lodes dips steeply to the south. A strike of more than 115 metres mineralisation at Starlight has been intersected and remains open down-dip and along strike (east and west). 

Notably, all the drill intersections sit outside but lie in close proximity to Break of Day’s current resource. From the current RC drill program at Starlight, six metres composites and one-metre individual samples combination have been analysed. All above 0.1g/t Au six-metre composite samples will be resubmitted for one-metre sample analysis. 

Significant intercepts include:

• 20MORC037- 42m @ 77.3g/t Au from 30m, including 18m @ 179.4g/t Au from 30m (including 6m @ 498.2g/t Au from 36m)
• 20MORC031- 61m @ 12.7g/t Au from 76m, including 6m @ 44.6g/t Au from 76m and 21m @ 23.6g/t Au from 106m 
• 20MORC036- 22m @ 21.0g/t Au from 2m, including 9m @ 49.2g/t Au from 8m 
• 20MORC029- 9m @ 16.5g/t Au from 225m, including 3m @ 47.6g/t Au from 225m 
• 20MORC038- 4m @ 48.2g/t Au from 85m
• 20MORC028- 2m @ 37.7g/t Au from 74m

INTERESTING READ: Musgrave Exploration In Full Swing With Drilling Recommenced At The New High-Grade Starlight Link-Lode

Backdrop to Ongoing Starlight Drilling Program

The ongoing RC drilling program, consisting of more than 36 holes for ~7,000 metres is around 80% complete. With the addition of latest drilling results, assays for 19 holes have been received to date, with near-surface high-grade mineralisation indicated by the drilling program. 

Break of Day contributes a significant deposit of 868Kt @ 7.2g/t Au for 199koz contained gold to the Cue project along, with the Lena deposit contributing 4,3Mt @ 2.3g/t Au for 325koz contained gold which is located 130 metres to the west. The two deposits form 6.45Mt @ 3.0g/t Au for 613koz resource at Cue Project.

With reference to Cue Project, Musgrave has defined prospective gold corridor of more than 28-kilometres long and includes the Break of Day, Starlight, Lake Austin North and Mainland-Consols gold discoveries.

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

Road Ahead

At Break of Day, the company is continuing with follow-up drilling on the new Starlight link-lode and expects assays within two weeks. 

For testing depth extensions to the Starlight mineralisation, diamond drilling will commence this week at Starlight, while Break of Day’s resource update including Starlight is due in late Q3, 2020. 

Numerous priority gold targets warranting follow-up drill testing have been identified through the Phase 1 regional aircore geochemical drilling program. Meanwhile, company has scheduled the Phase 2 follow-up aircore drilling of high priority gold targets to commence in late July 2020.

MUST READ: Musgrave’s Robust Management Galvanising Exploration Endeavours