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Emerging gold and base metal explorer, Musgrave Minerals Limited (ASX: MGV) marks another tick on its exploration success at Cue Gold Project, located in Western Australiaâs Murchison district.
The company has been advancing swiftly at its flagship project- the Cue Project, with significant gold discoveries at Cue Gold projects including Mainland, Break of Day, Lena and Evolution JV at Lake Austin North, along with copper discoveries at Eelya South Prospect and Hollandaire Prospect (via its earn-in partner Cyprium Metals).
High-grade gold results at Break of Day
A week after reporting high-grade gold results from reverse circulation (RC) drilling at Mainland on the Cue Gold Project, Musgrave has now revealed high-grade gold results from RC drilling at Break of Day, also a part of Cue Gold.
Following the release of this news, MGC stock zoomed up by 20% during the dayâs trade. Excluding todayâs substantial increase in the share price, MGV has already risen over 40% in the last six months. At market close on 3 December 2019, MGV was trading at a price of $0.096.
It is to be noted that, the Break of Day area is excluded from the Earn-in and Exploration Joint Venture with Evolution Mining Ltd (ASX:EVN) with Musgrave retaining 100% interest in gold tenure totalling 172km2.
As per the announcement, the RC drilling at Break of Day has intersected high-grade gold in a âlinkâ position joining the two main gold lodes at Break of Day.
Drill hole 19MORC037, drilled to confirm a high-grade thicker section of the Break of Day system and test a new structural interpretation, has identified a quartz dominant linking structure and gold lode assaying:
- 45m @ 11.8g/t Au from 144m down hole including;
- 11m @ 14.0g/t Au from 144m down hole including;
- 5m @ 29.2g/t Au from 150m and
- 11m @ 14.0g/t Au from 144m down hole including;
- 23m @ 16.2g/t Au from 166m down hole.
The strike and dip extent of this possible âlink-lodeâ has not been drill tested but has the potential to add significant upside to the high-grade gold resource at Break of Day.
Further extensional drilling to the south of Break of Day has intersected 6m @ 5.6g/t Au from 126m down hole (19MORC031).
New high-grade âlink-lodeâ intersected
The RC drill program at Break of Day consisted of 6 holes for 786m and has extended the high-grade gold mineralisation to the south, while identifying a new high-grade âlink-lodeâ structure between the two main Twilight and Velvet gold lodes.
These new high-grade âlink-lodeâ structure could be a significant thing for the company with the potential to improve the economics of the deposits by increasing ounces per vertical metre within sections of the deposit.
Summary of New MGV Drill Assay Intervals from Break of Day
These encouraging results are taking Musgrave closer its objective of expanding its Gold resource base at Cue. Further, the recent results of Break of Day have opened several possibilities and opportunities to discover additional lodes and grow resource base at this target.
Forward Plan
As announced by Chairman Mr Graham Ascough at 2019 AGM, Musgraveâs focus will continue to be on the Cue Project for the foreseeable future.
- Initial composite assay results for one metre individual samples from Break of Day to extend and grow the existing resources are expected in mid-December;
- Musgrave is planning an additional follow-up drilling for Break of Day, scheduled for Q1 2020 which will lead to a resource update in Q2 2020;
- The company is also undertaking a detailed 3D analysis for Break of Day to help define the potential for additional possible link positions.
- The company now expects assay results for extensional drilling at Lena and the remaining drill hole at Mainland in mid-December;
- Further follow-up RC drilling at Mainland is currently being planned for early Q1 2020
- Lena resource update is 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 in Q1 2020 to further define gold targets for basement drill testing.
Considering the exploration success witnessed by Musgrave at Cue Gold, the company believes it to be highly likely for the resource figure of 440koz of gold at Cue to grow significantly in the near future.
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