Musgrave’s Quarterly Report Card Highlights Significant Discoveries and Developments

Australian gold exploration company, Musgrave Minerals Ltd (ASX:MGV) appears to be taking long strides in its various project-related endeavours. The quarterly report ending 31 March 2020 released by the company highlighted high-grade gold discoveries at its Cue Gold Project, which are serving to enrich Musgrave’s success story.

Cue Project located in WA’s Murchison Province tends to foster the gold exploration objectives of Musgrave Minerals. Post the significant resource update at Lena in February 2020, the total Gold Resource at Cue Project stands at 6.45Mt @ 3.0g/t Au for 613koz Au.

Musgrave has discovered Starlight link-lode at Break of Day which is high-grade gold link lode of over 100 metres strike length and opening to the West and down dip. The company also holds tenements in South Australia’s Musgrave Province.

In the meantime, Pro-actively responding to the coronavirus crisis, MGV has aligned its operational plans and procedures with the government directives and official health advice. In the face of the pandemic, the company has also tightened its expenditures while remaining an active explorer focussed on Starlight Link-Lode and Evolution JV in near term.

With this backdrop, let us catch a glimpse on the varying exploration, corporate and investment activities undertaken by Musgrave in the March Quarter 2020.

Break of Day Demonstrating High-Grade Mineralisation

Starlight: Post the further extensional drilling, the drill holes successfully intersected high-grade gold which sits outside the JORC resource boundary.

The new high-grade Starlight link-lode discovery remains the key highlight. The significant intercepts having the potential to grow the current Break of Day resource significantly include:

• 20MORC018- 42m @ 6.8g/t Au, including 4m @ 65.9g/t Au
• 20MORC013- 42m @ 5.6g/t Au, including 5m @ 12.6g/t Au and 5m @ 32.2g/t Au
• 20MORC012- 6m @ 55.8g/t Au
• 20MORC014- 7m @ 7.0g/t Au
• 20MORC001- 4m @ 10.3g/t Au

Further, diamond drilling will follow the RC drilling, which is planned to commence in May, paving way for the resource update in Q3 2020.

ALSO READ: Musgrave Riding High Backed by High-Grade Gold Results at Break of Day’s New Starlight Lode

Twilight: South of the existing Twilight Lode resource, high-grade mineralisation was intercepted lying outside the current resource boundary. Significant intercepts are:

• 20MORC001- 3m @ 118.4g/t Au from 72m, including 1m @ 351.2g/t Au from 73m
• 20MORC002- 2m @ 7.8g/t Au from 61m
• 20MORC003- 1m @ 6.3g/t Au from 182m
• 20MORC004- 17m @ 3.7g/t Au from 19m, including 9m @ 5.1g/t Au from 21m

Significant Resource Upgrade at Lena

The assay results from the last RC drill holes,which were the part of the Lena resource drilling program has led to a significant upgrade in the Resource base. The intercepts include:

• 19MORC039- 5m @ 12.1g/t Au from 82m, including 2m @ 28.3g/t Au from 82m, within a broader interval of 46m @ 1.5g/t Au to EOH from 82m
• 19MORC041- 9m @ 6.4g/t Au from 116m, including 2m @ 22.3g/t Au from 121m

The resource update has more than doubled the Lena Mineral Resource and has also increased the gold grade. The company since the previous resource update has increased the Mineral resource by 112% at Lena, by adding 172,000 ounces of gold while improving the deposit’s overall grade to 2.3g/t gold, up by 28%.

Besides, the higher confidence, Indicated Resource category has increased by 72% post the update.

Currently, the total (Indicated and Inferred) Lena’s Mineral Resource is 4.3Mt @ 2.3g/t Au for 325,000 ounces of contained gold. The table below summarises the updated mineral resource at Lena.

Notable Exploration Endeavours at Mainland and Lake Austin Region

Mainland

During the March Quarter at Mainland, Musgrave completed the RC drilling program where high-grade intercepts were returned at the Consols Prospect. Over a strike extent of ~100 metres, the high-grade shoot is defined.

Over the northern part of the Mainland project area, where the minimal cover thickness is suggested by regolith interpretation and has no historical drilling, the company is continuing the soil geochemical survey.

Lake Austin

An element of the Evolution Earn-in and Exploration Joint Venture, the significantly underexplored Lake Austin area demonstrate high gold potential.

As a part of the initial diamond drilling program completed during the quarter, two holes were drilled for 574 metres. Regolith anomalism was confirmed by the assay results. However, for the geochemical gold halo targeted with the drilling, the definitive basement source remains undefined.

Furthermore, to the end of the quarter over Lake Austin, a large regional aircore drilling program has commenced with 138 holes drilled for 14,382 metres. The aircore program remains focussed on defining geochemical anomalies related to gold undercover. The drilling for the program is underway, and the assays are pending.

Glimpse at Corporate and Investment Activities

On 2 April 2020, Cyprium Metals Ltd notified Musgrave that it had earned 80 per cent interest in the base metal rights over the northern tenements at the Cue Project including the Hollandaire deposit. Consequently, MGV retains 100 per cent gold rights while 20 per cent interest in the base metals is free carried to completion of a definitive feasibility study.

After the March quarter-end, the company exercised 10 million Legend options at 4c/option using the part of the proceeds that involved selling 7.5 million Legend Mining Ltd shares. It has culminated in the net gain of $634,000 cash for Musgrave, which now holds 12.5 million Legend shares valued at around $2.3 million.

Meanwhile, the company also owns 1,308,750 ordinary Cyprum shares which are escrowed until June 2020 and current are valued ~$0.13 million

Ongoing Exploration

• From four and six-metre composite samples, the company is awaiting the one-metre samples, which would be reported following the receipt.
• Follow-up drilling will resume in May and will be followed by the assay results.

Evolution JV

The company is advancing with the regional aircore drilling program on Lake Austin, the results of which will be reported post the program completion and final assays receipt.

MGV stock last traded at $0.115 per share. The stock has generated a positive return of 36.90% and 79.69% in the past three months and one year, respectively.