Australian gold and base metal exploration company, Musgrave Minerals Limited (ASX: MGV) continues to focus on the flagship Cue Project, located in the well-endowed and gold-producing Murchison region of Western Australia, with the main objective to significantly grow its gold resources through extensional and greenfield exploration drilling.
In March 2019, Musgrave struck a deal with a wholly-owned subsidiary of Cyprium Metals Limited (ASX: CYM), pursuant to which, an option has been granted by Musgrave to earn-in and joint venture for an 80 per cent interest in the non-gold rights over the tenements at the Cue Copper Project.
Consequently, in the past few months, Cyprium Metals conducted significant exploration work at the project that has revealed encouraging findings.
Progress Report at the Cue Project’s Eelya South prospect
On 4 November 2019, CYM released a progress report wherein it revealed the results from recently conducted regional field mapping and surface sampling programme at the Cue Project’s Eelya South prospect, that witnessed minimal drilling activities earlier. The Eelya South prospect is situated ~ 5 km to the south of Hollandaire copper mineralisation. The aim of the regional programme at the Cue Copper is to increase CYM’s copper resource base.
Executive Director of CYM, Mr. Barry Cahill commented:
“We are extremely pleased to report these high-grade copper samples from a shear occurring at surface for more than five hundred metres in length”
“The results received to date have reinforced the potential copper endowment of the Cue Copper Project”
Notable Intercepts include:
- 19.7% Copper in surface sample ES13 including 0.9 g/t Au and 32.5 g/t Ag
- 14.5% Copper in surface sample ES11 including 2.7 g/t Au and 14.0 g/t Ag
- 11.4% Copper in surface sample ES15 including 0.7 g/t Au and 55.5 g/t Ag
- 9.6% Copper in surface sample ES12 including 4.1 g/t Au and 47.5 g/t Ag
- 9.2% Copper in surface sample ES08 including 0.8 g/t Au and 19.5 g/t Ag
Upcoming RC Drilling at Eelya South prospect
The RC drilling programme will be conducted in three phases, each dependent on the mineralisation results from the preceding phase. Cyprium Metals is eyeing Programme of Works application approval from the Department of Mines, Industry Regulation and Safety in November, following which the drilling will commence at Eelya South.
Location of Eelya South at the Cue Copper Project tenements (Source: Company’s Report)
In mid-November 2019, an RC drill rig will be mobilised to site which will undertake:
- Phase II drilling campaign at the Hollandaire deposit,
- Regional drilling campaign at the Rapier prospect,
- Regional drilling campaign at the Eelya South prospect.
Cyprium Metals Exploration work
Previously, Cyprium Metals had conducted metallurgical diamond drilling programme at Hollandaire and Hollandaire West deposits, both part of the Cue Copper Project. After successfully completing the Phase I drilling and metallurgical drilling at both the deposits, the company is now planning to undertake Phase II drilling programme at the Hollandaire deposit during November and December.
Progressing on its objective to grow its gold resources, Musgrave recently recommenced drilling at Mainland to follow-up previous high-grade gold drilling results and surface rock chip assays. Following the completion of the Mainland program, additional RC drilling is planned for Break of Day and Lena deposits.
It is to be noted that, Lena, Break of Day and Mainland are all 100 per cent owned by Musgrave and are excluded from the recently announced Lake Austin Earn-in and Exploration JV with Evolution Mining Ltd.
Ongoing exploration work
- Musgrave is working towards delivering a Lena resource update in Q1 2020;
- RC drilling at Lena and Break of Day to extend and grow the existing resources is scheduled for early November;
- Follow-up RC drilling of recent high-grade gold drill results and surface rock-chip samples at Mainland has commenced;
- On the new JV area over Lake Austin at Cue, Musgrave and Evolution are planning follow-up drilling programs at Lake Austin North and other lake targets where there is evidence of a potential large gold system.
Expiry of Unlisted Options
On 4 November 2019, Musgrave advised that the number of options on issue has decreased by 2.5 million as a result of the expiration of unlisted options issued to Directors. As at 4 November 2019, Musgrave had 17.25 million unlisted options on issue.
At market close on 5 November 2019, MGV stock was trading at a price of 0.071. Over past six months, the stock has provided a decent return of 27.6%.
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