Australian exploration company Musgrave Minerals Limited (ASX: MGV) has been progressing well to expand gold and copper resources at its flagship Cue project. The success MGV achieved through its exploration programs in 2019 is expected to aid its journey further in 2020.
Musgrave has been marking key developments at Cue with significant copper discoveries at Hollandaire Prospect and Eelya South Prospect (via earn-in partner Cyprium Metals) and gold discoveries at Mainland, Break of Day, Lena and Evolution JV at Lake Austin North.
Cyprium Metals Limited (CYM) has been continuously conducting test works at Cue Copper Project which includes Mineral Resources at Hollandaire and high priority drill targets. CYM recently released an Investor presentation providing key development updates.
Lens Through Cue Copper Project
- The project was acquired with a copper Mineral Resource;
- Increasing scale of Mineral Resources whilst undergoing metallurgical test-work;
- Originally explored by Silver Lake Resources who discovered Hollandaire in 2011;
- Minimal base metals exploration undertaken by previous mineral explorers as they were more focused on gold;
- Initial review of the mineralogy indicates that it is favourable to sulphide heap leach processing techniques;
- The Hollandaire Mineral Resource remains open in multiple directions;
- A number of high priority exploration targets to pursue.
Upping The Copper Exploration Initiatives In 2019
Under the Joint Venture agreement, CYM has undertaken and completed several explorations works at the Cue Copper Project in 2019, including:
- Hollandaire resource extension phase 1 of 4,038 metres of Reverse Circulation (RC) drilling, assays received;
- Hollandaire metallurgical drilling - 330 metres diamond drilling, assays received;
- Twinned diamond and RC holes to check the mineralised intersections completed;
- Regional geochemical sampling program commenced
- High Grade Eelya South copper surface samples recorded; assays received
- Rapier West geochemistry infill sampling underway
- Geophysical review commenced;
- Metallurgical test work underway with copper leaching occurring in first column at room temperature within one hour;
- Completed Eelya South RC Drilling Phase 1 and Phase 2 for 1,138 metres;
- Eelya South drilling conducted in multiple phases, to allow for the mineralisation results from the assays to be included in the planning for the subsequent drilling program;
- Ongoing review of regional tenements at Mount Eelya to add to mineral resources.
Eyeing 2020 for significant developments at Cue Copper
Given the exploration momentum at Cue Copper Project in 2019, the next year seems to be a promising one with the below mentioned expected developments:
- Further column tests have commenced, and results expected early 2020;
- Metallurgical diagnostic testing results;
- Regional targets assay results to be received from January 2020;
- Regional drilling program at the Eelya South prospect;
- Regional drilling program at the Rapier prospect;
- Follow up downhole geophysics to be conducted as drilling progresses;
- Resource evaluation update to JORC Code 2012 to be completed in 2020;
- Follow up drilling Hollandaire, Hollandaire West, Eelya South and Rapier West;
- Drilling regional targets Mount Eelya and Colonel.
Update on Cue Gold Project
While CYM is busy exploring the copper rights at Cue, MGV stays focused on increasing the gold resources at the project.
Musgrave recently reported high-grade gold results from RC drilling at Break of Day and has also identified a new high-grade ‘link-lode’ structure between the two main Twilight and Velvet gold lodes, opening various possibilities and opportunities to discover additional lodes and grow the Break of Day resource.
Ongoing Exploration Work at 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;
- Initial composite assay results for RC drilling at Lena and one metre individual samples from Break of Day to extend and grow the existing resources are expected in mid-December;
- Lena resource update expected in Q1 2020;
- 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, Evolution and Musgrave are planning a large aircore drilling program, scheduled to commence in Q1 2020, to further define gold targets for basement drill testing;
- Heritage surveys are currently being organised prior to the commencement of this aircore program;
- Further follow-up RC drilling at Mainland is currently being planned for early Q1 2020;
- Follow-up drilling of possible link-lodes at Break of Day is planned for Q1 2020 leading towards a resource update in Q2 2020.
Notably, MGV stock price has increased by 71.15% in the last six months. The stock traded at a price of $0.090 on 16 December 2019, up by 1.12%.
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