Musgrave (ASX:MGV) reports new gold intercepts from drilling at Cue

Highlights

• Musgrave Minerals has released another set of encouraging gold assays from reverse circulation (RC) drilling at Cue
• The company says that RC drilling at Amarillo, Big Sky and Numbers East has returned new gold intercepts from shallow depths
• MGV is planning additional follow-up drilling at these prospects
• Further drill assays for Waratah and Break of Day North are expected in two weeks
• The project is located almost 30km south of the Cue town in Western Australia, with Stage 1 Pre-feasibility Study in progress

Musgrave Minerals (ASX: MGV), an Australian explorer and developer of gold, has updated the market on latest results from drilling program completed across its Cue gold project in December 2022. 

The company states that reverse circulation (RC) drilling at the project areas -- Numbers East, Amarillo, and Big Sky -- has delivered new gold intercepts from shallow depths. Separately, drilling results from the prospects, namely Break of Day North and Waratah, are expected in a fortnight.

Below are more details related to the latest drill assays for the company’s flagship Cue Project. 

Amarillo Prospect

At this prospect, infill reverse circulation drilling has continued to hit regolith gold mineralisation.

Few of the new intersections (Data source: company update)

MGV plans to incorporate the assays into a 3-D resource model. This would help in ascertaining the strike and true width of the mineralisation.

The company asserts that these latest drilling results are a part of a resource definition drill program, which focuses on paving the way for a maiden Mineral Resource for the prospect in the latter half of this year.

Big Sky and Big Sky North deposits

At the Big Sky prospect as well, infill reverse circulation drilling continued to hit significant gold mineralisation. This mineralisation, MGV states, is located under thin transported hardpan cover. The latest infill drilling has continued to ascertain and also enhance the near-surface Au endowment along the trend.

New intersections (Data source: company update)  

MGV asserts that the intersections establish upside potential at the deposit and are expected to facilitate resource conversion, thereby leading to further resource enhancement and future pit designs.

Besides, drilling of an isolated aircore intercept at Big Sky North also intersected Au, returning 2m @ 3.3g/t Au from 34m from 22MORC361.

East Numbers Target

At this target, a reconnaissance reverse circulation drilling program was completed, and the aircore drilling has detected a gold anomaly of 1.3 km length within Archaean regolith. First basement drilling in the area included six holes for 786m drilled on three 400m spaced traverse lines.

Early-stage basement gold intersections (Data source: company update)  

What’s next?

MGV is awaiting drill results for the Waratah and Break of Day North targets, with assays expected by end of February.

The company has also recommenced RC drilling of new and existing targets towards boosting the current resource base.

A regional aircore program is set to begin this month on new target areas at the flagship Cue Project. Final Stage 1 Pre-feasibility Study is expected by late March 2023.

MGV shares traded at AU$0.190 on 14 February 2023.