In a noteworthy development, the Australian gold and base metals explorer Musgrave Minerals Limited (ASX:MGV) has strengthened its financial position and shareholding in ASX-listed Legend Mining Limited (LEG).
The Company has achieved this via the sale of 7.5 million LEG shares for $1.03 million and the exercise of 10 million Legend options at a price of $0.04 per option. Consequently, the Company now holds 12.5 million ordinary shares in Legend with a market cap of about $2.3 million.
The transaction has improved the Company’s financial position, with a net cash increase of $634,000.
Funds Directed to New Starlight Gold Discovery
Musgrave notified that it intends to utilise the funds towards follow-up Reverse Circulation (RC) of the new Starlight gold discovery at Cue Gold Project, likely to commence in early May 2020.
The Company has planned to undertake follow-up RC and diamond drilling of the Starlight link-lode at Break of Day deposit on the Cue Gold Project in WA’s Murchison district. The follow-up drilling will be undertaken ahead of an expected resource update for the Break of Day deposit in the 3rd quarter of 2020.
Starlight Link-lode is a new high-grade link-lode discovery, confirmed via recently completed RC drilling at Break of Day deposit.
Currently, the Break of Day gold deposit’s resource estimate is 868Kt @ 7.2g/t Au for 199 thousand ounces of contained gold. This resource estimate is centred on two sub-parallel quartz vein lodes (Velvet and Twilight) and does not include the results from the new Starlight Link-Lode.
The identification of the Starlight Link-Lode is significant for the Company as the high-grade structure holds the potential to add shallow, high-grade gold ounces to the Break of Day resource at Cue.
Starlight Link-Lode Returned Significant Assays
Starlight Link-Lode at Break of Day returned significant assay results in RC drilling, with all intersections sitting outside the current resource boundary. The RC drilling activity at Break of Day included 13 drill holes for 2,490 metres. Below table summarises the assay results from the RC drilling:
Source: Company’s Reports
Currently, the Starlight mineralisation is interpreted to lie at least 100m long, within an east-west zone and comprise several high-grade gold veins dipping steeply to the south. The mineralisation, open up and down dip, has not yet been drill evaluated for the near surface.
Musgrave is eyeing one metre re-assay of four and six metres composite samples from Starlight, which it plans to report on receipt. The RC samples were collected as four or six metres composites for all drill holes in the recently completed RC drilling program, and 1m individual samples were immediately sent for analysis where a high likelihood of mineralisation occurs.
Moreover, the Company seems to be well on track to commence follow-up drilling in early May on the new Starlight Link-Lode, with assay results to follow.
Besides continuing drilling activities at Break of Day, the Company is also progressing well with the regional aircore drilling program on Lake Austin. The Company will report the results on completion of the drilling program and receipt of final assays.
Musgrave expects further drilling to extend the high-grade mineralisation at Starlight Link-Lode, which continues to deliver high gold grades. With Starlight remaining open near surface, the Company also anticipates confirmation of numerous individual lodes in this link position which can enhance upside potential and economics of this new discovery.
MGV closed the trading session at $0.115 on 20th April 2020.
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