Emerging gold and base metals explorer Musgrave Minerals Limited (ASX: MGV) envisions to remain focused on its cornerstone project- the Cue Project for the foreseeable future. Musgrave continues to plan and conduct extensional and greenfield exploration drilling to grow its gold resources at Cue, with valuation underpinned by existing 440k oz JORC resource.
MGV’s Current Drill Programs to Generate New Intersections
The company is confident that its current drill campaigns possess the potential to extend previously identified mineralised zones to grow its resource base.
At 2019 Annual General Meeting (AGM), Musgrave highlighted various achievements in relation to the development of Cue Gold Project, including:
- High-grade gold extensions identified down plunge at Lena and along strike at Break of Day;
- New gold intersection identified for follow-up and high-grade rock-chip samples assayed at Mainland for further drill testing;
- Large gold halos identified under transported lake cover on Lake Austin that require basement drill testing.
Musgrave’s Chairman, Mr Graham Ascough commented:
“Given the ongoing drilling success at Cue, we remain confident that the current resource figure of 440koz of gold will grow significantly”
Following high-grade surface rock-chip samples and gold drill results, MGV is conducting Reverse Circulation (RC) drilling campaign at Mainland, with first assays expected in late November.
Further, drilling has recently been completed at Lena and Break of Day with assays expected in December. With the encouraging results obtained to date, MGV is further planning to update the Lena resource next quarter.
MGV Progressing at Evolution Earn-in JV
In addition, Musgrave has recently commenced drilling at Lake Austin North, in pursuant to the Evolution Earn-in and Exploration Joint Venture (JV( agreement under which Evolution Mining Ltd (ASX:EVN) can earn up to a 75% interest by spending $18 million over the next five years.
The Drilling at Lake Austin North will focus on identifying the basement gold source of large geochemical halos defined by aircore drill results that include:
- 50m @ 1.1g/t Au (19MOAC173)
- 17m @ 0.27g/t Au to EOH (19MOAC015)
- 26m @ 0.62g/t Au to EOH (19MOAC017)
- 4m @ 1.09g/t Au to EOH (19MOAC007)
At the AGM, Mr Graham Ascough emphasized that this JV does not include areas that host known gold resources and that Musgrave has retained a 100% interest in gold tenure totalling 172km2 that includes the Lena, Break of Day and Mainland areas.
Musgrave is the initial operator of the JV with technical inputs from EVN. Importantly, the JV has allowed Musgrave to accelerate exploration activities at Cue with a strong focus on drilling and discovery.
Major Highlights of Evolution Earn-In JV
- JV agreement reinforces confidence in project’s upside gold potential
- EVN to fund $18M over 5 years to earn 75%
- Minimum spend of $4M within the first 2 years (& $2M in first 7 months)
- MGV to manage during the initial earn-in period
- Brings in EVN technical expertise
- >14km of unexplored shear zone beneath lake cover at variable depths (40m to 120m)
- Additional funding - EVN have subscribed for $1.5M of shares at $0.08/share;
- MGV to retain 100% of all known gold resources and approximately 11km of the prospective shear zone (including all near surface – non covered zones)
MGV charting out Future Plan for Cue Gold Project
At the AGM, Musgrave also shared its 2020 Objectives for Cue Gold Project, which are as follows:
- Grow gold resource base
- Obtain approval for mining proposal for Break of Day and Lena
- Make new gold discoveries on 100% ground
- Determine the extents of the Lake Austin North gold mineralisation and define the potential size of the system
- Continue to drill test basement targets on Lake Austin with the aim of defining a large economic gold resource
- Continue to expand gold land holding at Cue
Musgave’s management is committed to progressing by advancing targets towards discovery and development through high-quality exploration and technical studies for the benefit of shareholders. Taking into consideration the exploration success at Cue project and strong AUD$ gold price environment, it can be said that the well-funded Musgrave its exploring gold at the right time at the right place.
In the last six months, MGV’s stock has generated a return of ~19%. At market close on 21 November 2019, MGV stock was trading at a price of $0.070, up 1.5% with a market cap of $27.97 million.
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