Emerging gold and base metal explorer Musgrave Minerals Limited (ASX: MGV) is focused on the exploration at its cornerstone project- the Cue Project, located in the Murchison Province of Western Australia. The Project, with JORC compliant copper and gold resources, hosts four operating gold plants including Westgold’s Tuckabianna plant.
High-grade copper surface samples reported at Cue Copper Project
Musgrave Minerals optioned the copper rights to Cyprium Metals earlier this year by executing a Binding Term Sheet, allowing Musgrave to retain 100 per cent of the gold rights while advancing base metal targets through the discovery phase and reducing the company’s holding costs.
So far, the exploration activities conducted by Cyprium Metals at the project has revealed some exciting observations, with the results reinforcing the potential copper endowment of the Cue Copper Project.
Post the successful completion of the Phase 1 drilling at the Hollandaire and Hollandaire West deposits, Cyprium recently announced the results from a regional field mapping and surface sampling programme at the Cue Copper Project’s Eelya South prospect wherein the review and field inspection was conducted on the regional prospects to prioritise targets for the next phase of drilling.
Apart from confirming that the rock chip surface samples and observed surface mineralisation at the Eelya South prospect are very encouraging, Cyprium Metals reported high-grade copper samples from a shear occurring at surface beyond 500m in length.
Best mineralisation assays at Eelya South Surface Sampling include:
- 7% Copper (Cu) in surface sample ES13 including 0.9 g/t Au and 32.5 g/t Ag,
- 5% Cu in surface sample ES11 including 2.7 g/t Au and 14.0 g/t Ag,
- 4% Cu in surface sample ES15 including 0.7 g/t Au and 55.5 g/t Ag,
- 6% Cu in surface sample ES12 including 4.1 g/t Au and 47.5 g/t Ag,
- 2% Cu in surface sample ES08 including 0.8 g/t Au and 19.5 g/t Ag.
Cyprium has planned a RC drilling programme at the Eelya South prospect during November - December 2019, parallel to the RC drilling at the Rapier prospect and Hollandaire deposit.
The campaign is expected to be conducted in three stages, each dependent on the previous mineralisation results. The drilling will commence upon receiving the expected approval of Programme of Works application lodged with the Department of Mines, Industry Regulation and Safety.
MGV’s 2019 Progress Report at Cue Copper Project
- Hollandaire resource extension phase 1 of 4,038 metres of RC drilling, assays received;
- Hollandaire metallurgical drilling 330 metres diamond drilling, assays received;
- Twinned diamond and RC holes to check the mineralised intersections commenced;
- Regional geochemical sampling programme commenced;
- Eelya South surface samples assays received
- Rapier West geochemistry infill sampling underway
- Geophysical review
Forward Plan for Cue Copper Project
- Metallurgical diagnostic testing results- expected in November 2019;
- Twinned RC and diamond drill holes assay results as well as Geochemical sampling results- expected in November;
- Hollandaire resource extension phase 2 RC drilling - to commence in November 2019;
- Regional targets initial drilling to be conducted - November 2019;
- Follow up downhole geophysics to be conducted as drilling progresses;
- Resource evaluation update to JORC Code 2012 - to be completed in 2020
Meanwhile, Musgrave is also continuing with its exploration programme at the Cue Gold project, with an objective to expand the gold resource.
Recent Development Progress at Cue Gold Project
- High-grade gold assay results received from diamond drilling at the Lena deposit;
- High-grade rock-chip sample identified at Mainland in areas with no previous drilling;
- RC drilling commenced at Mainland to follow-up previous high-grade gold drilling results and surface rock chip assays;
- Additional RC drilling is planned for Break of Day and Lena following completion of the Mainland programme;
- Musgrave executed an $18 million Earn-in and Exploration Joint venture with Evolution Mining Ltd (ASX: EVN) over the Lake Austin portion of the Cue Project.
Musgrave Forward Plan for Cue Gold Project
- First assays on the follow-up RC drilling of recent high-grade gold drill results and surface rock-chip samples at Mainland - expected in late November;
- Further RC drilling at Lena and Break of Day to extend and grow the existing resources - scheduled for early November;
- Lena resource update - expected to be delivered in the first quarter of 2020;
- On the new JV area over Lake Austin at Cue, Musgrave and Evolution Mining are planning follow-up drilling programmes at Lake Austin North and other lake targets with evidence of a potential large gold system.
At market close on 15 November 2019, MGV was trading at a price of $0.069, up by 1.471% with a market cap of $27.57 million.
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