Gold and Base metal explorer, Musgrave Minerals Limited (ASX: MGV) has been progressing rapidly at its cornerstone project- the Cue Project which consists of the Moyagee Gold (including Mainland, Break of Day and Lena, along with Evolution JV at Lake Austin North) and Hollandaire Copper areas in the highly prospective Murchison province of Western Australia.
Musgrave’s joint venture partner, Cyprium Metals Limited (CYM) has been advancing base metal targets at Cue through the discovery phase, while reducing Musgrave’s holding costs and allowing it to focus solely on the gold exploration and development at the Cue Project.
Initial RC Drilling completed at Eelya South Prospect
As per the latest ASX update, CYM has completed the initial phase I and II of the Reverse Circulation (RC) drilling programme at the Eelya South prospect, totalling 1,138 metres and has also commenced a 900 metre RC drill programme at the Rapier prospect.
Interestingly, all initial phase drillholes under the RC drilling at Eelya intersected the targeted structure with altered and mineralised material observed at the supergene horizon, from a depth of around 30 metres below the ground surface — a positive achievement from an exploration perspective.
Below is the observed mineralisation and assay results of the recent rock-chip samples:
- 19.7% Cu in surface sample ES13 including 0.9 g/t Au and 32.5 g/t 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.
CYM Executive Director Mr Barry Cahill commented:
“We are very pleased to have completed the initial Reverse Circulation drilling programme at the Eelya South prospect over a strike length of approximately 500 meters and consistently intersecting the structure at a very shallow depth”
CYM has been conducting the Eelya South RC drilling programme of 2,430 metres in multiple phases (each dependent on the previous phase mineralisation results), in order to allow for the mineralisation results from the assays to be included in the planning for the subsequent drilling programmes.
It is expected that the assay results from Eelya South phases 1 and 2 will be released at the beginning of January 2020.
Hollandaire Prospect: Early Copper Leaches into solution from column test-work
As per latest ASX update, Cyprium Metals has also commenced a metallurgical column test-work at the Hollandaire Prospect on the enormous sulphide mineralisation from the Diamond Drilling (DD) program that targeted the known Cu mineralisation.
The company has been very confident to see the leaching of Cu into solution at room temperature conditions within one hour from the commencement of the test-work.
MGV advancing well on the Cue Gold Project
While CYM is busy exploring the Cue Copper Project, Musgrave has maintained its focus on the exploration of high priority gold targets at Cue, including Mainland, Lena, Break of Day and Lake Austin North.
Musgrave recently reported high-grade gold results from RC drilling at Mainland deposit, with the results similar to the early results at Break of Day, complementing the company’s assessment of the further scope of potentially significant gold discoveries in the Murchison region.
RC drilling has intersected high-grade gold at the Consols Prospect at Mainland, including:
- 2m @ 55.4g/t Au from 52m down hole (19MORC019), including 1m @ 108.3g/t Au from 52m;
- 12m @ 8.1g/t Au from 108m down hole (19MORC018), including 6m @ 14.2g/t Au from 114m;
- 3m @ 5.2g/t Au from 73m down hole (19MORC020).
Forward Plan for Cue Gold Project
Musgrave is an active explorer with multiple drill programmes currently underway. Over the coming months, the company expects to come up with results of multiple explorations works.
- 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;
- Assay results for extensional drilling at Break of Day and Lena are expected in mid-December following the completion of the recent RC drilling programme;
- Resource upgrade at Lena scheduled for Q1 2020;
- DD 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 programme to further define gold targets for basement drill testing. This drilling is expected to commence in the first quarter of next year.
With Musgrave capitalizing on its exploration strengths and accelerating drilling programmes across a range of high priority targets at Cue, it is expected that the current resource figure of 440koz of gold will grow significantly in the near future.
Notably, MGV stock price has increased by 43.86% in the past six months. On 2 December 2019, the stock was trading at a price of $0.080 with a market cap of around $33.24 million.
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