It continues to be a very busy time for Australian gold and base metal explorer, Musgrave Minerals Limited (ASX: MGV), as it builds on the success of its 2019 exploration programs into 2020 as well. The company is strongly progressing towards its objective of increasing the copper and gold resources at its Cue Project, located in the Murchison Province of Western Australia.
Cue Gold Project - High-grade gold results intersected at Mainland
At its Cue Gold Project, Musgrave has reported high-grade gold results from Reverse Circulation (RC) drilling at the Consols Prospect at Mainland, supporting the company’s view that there are significant gold discoveries still to be made in the Murchison.
In the month of March 2019, Musgrave executed an Option Agreement to obtain the Mainland tenements. Subsequently, the company completed an initial RC drilling program and encountered mineralisation: 3m @ 5.4g/t Au from 74m down hole (19MORC008) at the Consols target.
Follow-up RC drilling consisted of 12 holes for 1,006m across three targets and has extended the Consols gold mineralisation along strike and down dip where it remains open and untested. Drill sampling involves a combination of six metre composite and one metre individual samples.
To be noted that the Mainland area is not a part of the Evolution Mining Ltd (ASX:EVN) Earn-in and Exploration JV at the Lake Austin North.
Assay results from Mainland RC drill program
The assay results returned high-grade gold intersections in adjacent holes at the Consols Prospect where the mineralisation remains open at depth and along strike to the west, as summarized below:
- Drill hole 19MORC018, drilled 35m down dip of the previous gold intercept in 19MORC008 (3m @ 5.4g/t Au), returned a high-grade result of 12m @ 8.1g/t Au from 108m down hole including 6m @ 14.2g/t Au from 114m from 6m composite samples.
- Drill hole 19MORC019, collared 25m to the north-east of 19MORC008, intersected 2m @ 55.4g/t Au from 52m down hole (1m individual samples), including 1m @ 108.3g/t Au from 52m.
- Drill hole 19MORC020, collared 25m to the southwest of 19MORC008, returned 6m @ 3.3g/t Au from 70m down hole including 3m @ 5.2g/t Au from 73m (1m individual samples).
- Assay results for a fourth RC hole, drilled a further 25m to the south of 19MORC020, are awaited together with one metre individual assay results for six metre composite samples for drill hole 19MORC018.
The company is planning an additional follow-up drilling which will be scheduled for Q1 2020.
Importantly, the holes drilled by the company are demonstrating good continuity of mineralisation with variable high grades consistent with the historical underground production records. The results are not so different from the early results at Break of Day with the gold mineralisation remaining open to the west and down dip.
Forward Plan for Cue Gold Project
- Remaining RC drill assay results and re-assays of anomalous 6m composite samples at one metre intervals from Mainland are expected in mid-December;
- Further follow-up RC drilling at Mainland is currently being planned for Q1 2020;
- In early December, the initial composite assay results for RC drilling at Lena and Break of Day are expected to extend and expand the existing resources;
- Diamond drilling on the Evolution JV at Lake Austin North is progressing well with drilling expected to continue into late December and assay results expected in February 2020.
- On the broader JV area over Lake Austin at Cue, EVN and Musgrave are planning a large aircore drilling program to further define gold targets for basement drill testing. This drilling is expected to commence in the first quarter of next year.
Cue Copper Project - RC Drilling Commenced at Eelya South Prospect
At Cue Copper Project, Musgrave along with its Joint venture partner Cyprium Metals Limited (CYM) is busy accelerating the exploration and expansion of copper resource base, with the Eelya South prospect being located only 5 km to the south of the Hollandaire copper mineralisation.
As announced on 26 November 2019, after getting the approval from the WA Department of Mines, Industry Regulation and Safety, CYM has commenced a regional RC drilling program at the Eelya South prospect. The program will include 2,430 metres drilling in three phases; and each phase will be dependent on the mineralization results of the previous phase.
This RC drilling program follows the completion of surface sampling program where the company had observed high-grade copper samples from a shear occurring at surface for more than 500m length, as summarized below:
- 19.7% Copper (Cu) in surface sample ES13 including 0.9 g/t Gold (Au) and 32.5 g/t silver (Ag),
- 14.5% Cu in surface sample ES11 including 2.7 g/t Au and 14.0 g/t Ag,
- 11.4% Cu in surface sample ES15 including 0.7 g/t Au and 55.5 g/t Ag,
- 9.6% Cu in surface sample ES12 including 4.1 g/t Au and 47.5 g/t Ag,
- 9.2% Cu in surface sample ES08 including 0.8 g/t Au and 19.5 g/t Ag.
Cue Copper Project - Metallurgical column test-work Commenced the Hollandaire Prospect
On 27 November 2019, Cyprium Metals announced that it has begun the metallurgical column test-work on the massive sulphide mineralisation from the DD (Diamond drilling) program that focused on the Hollandaire Prospect’s existing copper mineralisation. This test-work aims to determine the optimal copper extraction method.
The company was very confident to see the leaching of copper into solution at room temperature conditions within one hour from the initiation of the test-work.
The results from the metallurgical diamond drill holes included:
- 10.4m @ 14.9% Cu in drill hole 19HOMET003 from 84.5m downhole, including:
- 4.5m @ 21.9% Cu with 1.2 g/t Au and 46.4 g/t Ag from 90.4m;
- 19.1m @ 1.3% Cu in drill hole 19HOMET002 from 85.9m downhole, including:
- 6.4m @ 2.1% Cu with 0.5 g/t Au and 10.5 g/t Ag from 98.6m;
- 27.9m @ 1.1% Cu in drill hole 19HOMET001 from 45.7m downhole, including:
- 9.0m @ 1.6% Cu with 0.1 g/t Au and 2.3 g/t Ag from 63.2m.
Forward Plan for Cue Copper Project
- CYM is expected to start an RC drilling program at the Rapier prospect and the second phase of the Hollandaire RC drilling program, post completing the initial Eelya South RC campaign.
- CYM aims to timely inform the market with assay results from the RC drilling programs at the Cue Copper Project.
At market close on 27 November 2019, MGV stock was trading at a price of $0.075, up by 5.6% intraday, with a market cap of $28.78 million. The stock has soared by ~10.3% in the last two days.Notably, MGV has provided a decent return of 24.6% in the past six months.
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