Musgrave Minerals (ASX:MGV) highlights Cue Project’s gold exploration potential

Highlights:

• Musgrave Minerals has Total Mineral Resources of 6.4mt @ 3.2g/t Au for 659koz Au, and growing.
• MGV’s Cue Project is a high-grade gold project with high-value near-surface resources, including 797kt @ 10.2g/t Au for 262koz Au.
• MGV believes that the project indicates an opportunity for further discoveries and resource growth, with a resource update planned for late Q2 2022.
• MGV remains well funded amid a strong AUD gold environment and has significant news flow in the pipeline.

Musgrave Minerals Limited (ASX:MGV) is advancing with an objective to target major high-grade systems and stand-alone gold production during the year.

MGV has undertaken various works across its Cue Gold Project located in Western Australia.

The past exploration activities undertaken by MGV have delivered exciting results for the company and have enhanced the understanding of the gold systems to make new gold discoveries and expand the current resource base.

RELATED READ: Musgrave Minerals (ASX:MGV) prepares for further action after a busy March quarter

Let us learn more about MGV’s Cue Gold Project.

Focus areas at the Cue Gold project.

For the current year, MGV has planned to advance various works across its Cue Gold Project.

At its Cue Gold Project, MGV looks to systematically test targets to deliver new discoveries & grow the gold resource base. MGV further looks to conduct basement drill testing of Lake Austin gold targets on EVN JV to define a significant economic gold system.

Besides this, the pre-feasibility level studies across the present, as well as new gold deposits, will continue along with the efforts to define a clear path to maiden gold production.

Upside at Break of Day and Lena prospects

The Total mineral resource for Break of Day and Lena stands at 6.4mt @ 3.2g/t Au for 659koz Au.

Musgrave successfully increased the Mineral Resources at both Break of Day (797kt @ 10.2g/t Au for 262koz Au) and Lena (4.3mt @ 2.3g/t Au for 325koz Au) in 2020 for a total combined JORC (2012) and JORC (2004) compliant Mineral Resource for the Cue Project of 6.4Mt @ 3.2g/t Au for 659koz Au.

At Break of Day, ~85% of the gold is endowed within five main lodes in the top 200, averaging over 1,100oz per vertical metre of gold in resources in top 175m.

Source: MGV Presentation 03/05/22

MGV boasts of the new recently discovered Starlight and White Light gold lodes at Break of Day reflecting the upside discovery potential of the project. Starlight and White Light lodes host a combined 360kt @ 13.9g/t Au for 161kOz contained gold. Significant drill results within the resource include 14m @ 191g/t Au from 4m.

RELATED READ: Musgrave Minerals (ASX:MGV) reports high-grade gold intersections at Cue JV Project

MGV believes that the new discoveries at the deposit have changed the paradigm with increased search space. Moreover, there lies upside with multiple regional targets formulating pipeline, and high-grade gold has been identified across multiple prospects with potential for further discoveries.

Source: MGV Presentation 03/05/22

The new targets have more than 20,000m follow-up RC/Diamond drilling programs slated for May 2022 with a view to delivering significant resource growth potential.

Intercepts at White Heat and Mosaic lodes

White Heat and Mosaic Lodes are located only 300m south of Break of Day and are open down plunge. The prospects indicate new high-grade intercepts outside the present resource for both lodes, including the following:

White heat-

• 11m @ 19.6g/t Au from 48m (21MORC039)
• 4m @ 107.6g/t Au from 74.6m (21MODD019)

Mosaic-

• 15m @ 112g/t Au from 25m (21MORC232)

Source: MGV Presentation 03/05/22

MGV’s Cue Gold Project also comprises of two gold corridors that host extensive regolith mineralisation for which mineral resource update is currently pending.

Moreover, the Waratah trend has delivered 400m east of Break of Day and 2m @ 28.1g/t Au (21MORC359).

RELATED READ: Musgrave Minerals (ASX:MGV) reports strong assay results from Big Sky, shares up 4%

Multiple parallel gold zones at Big Sky

The Big Sky prospect extends across more than a 2.6 km strike and remains open to the east and down-dip with pending resource update.  

Source: MGV Presentation 03/05/22

Although a mineral resource for the prospect is currently pending, previous intercepts have indicated thick mineralisation, including the following:

 

MGV has identified several parallel gold zones at Big Sky, and the mineralisation remains open down-dip with all hits outside the present resource. Significant new intersections at the prospect include the following:

Source: MGV Presentation 03/05/22

RELATED READ: Musgrave (ASX:MGV) to acquire 100% interest in Mt Magnet South Project

The mineral resource estimate remains on schedule for late Q2 2022, and MGV remains optimistic that the new resource estimate will be around 120m. Additional drilling and resource growth is planned to be undertaken on high-grade shoots, and MGV will continue drilling post the resource update.

Source: MGV Presentation 03/05/22

Resource definition drilling planned at Amarillo Prospect

The Amarillo Prospect indicates two parallel, sub-vertical gold lodes with near-surface gold mineralisation. Key intercepts for the Amarillo target are as follows:

MGV has planned resource definition drilling for the Amarillo Prospect in May 2022.

PFL Level studies status

The status of various PFS level studies across Break of Day and Lena, and Big Sky and White Heat Mosaic prospects as shared by MGV is given below:

Pipeline of PFS Level Studies (Source: MGV Presentation 03/05/2022)

While a majority of the related works have been completed at Break of Day and Lena, a majority of the works at Big Sky and White Heat Mosaic are pending.

MGV’s Cue Gold Project boasts of a great location and is surrounded by major gold producers like Ramelius, Westgold, and Silver Lake. The project is serviced with excellent road infrastructure.

Moreover, MGV believes that the project indicates development options as the company strives for stand-alone operation amid a strong AUD gold price.

RELATED READ: Musgrave Minerals (ASX:MGV) reports strong drill results at Amarillo, shares up 4%  

Progress at Lake Austin, EVN JV

Under the JV with Evolution Mining (ASX:EVN) (EVN JV) , Evolution can spend AU$18 million over 5 years to earn 75% interest. If EVN fails to spend the complete amount, MGV will retain 100% ownership.

Currently, EVN is managing the JV and has increased its FY22 budget.

Source: MGV Presentation 03/05/22

Lake Austin indicates several new high-priority gold targets under variable thickness dune and lake cover. Moreover, basement gold mineralisation has been intersected at West Island and Lake Austin North targets.

Various key gold intercepts at West Island include the following:

• 3m @ 41.5g/t Au (21MODD025)
• 19m @ 4.4g/t Au (22CUDD001)
• 68m @ 1.5g/t Au (21MOAC024)

Source: MGV Presentation 03/05/22

Multiple key gold intercepts at Lake Austin North include the following:

• 84m @ 1.7g/t Au (18MORC039) including 20m @ 6.1g/t Au
• 94m @ 2.2g/t Au (18MORC057) including 29m @ 5.1g/t Au

Currently, diamond drilling is underway at West Island.  

Dolerite (favourable regional host lithology) at West Island is interpreted to extend south into MGV’s fully owned tenure. Around 4km of the strike in MGV’s fully owned ground remains poorly tested.

Source: MGV Presentation 03/05/22

Around 14,000m AC drilling program was recently completed to test this target, with assays pending. MGV believes that there are several similar untested targets on EVN JV.

Mt Magnet South Project, new tenure

New tenure, Mt Magnet South Project, further indicates good synergies with Cue Project and is aligned with exploration and resource growth strategy. MGV believes that there exists an opportunity to completely utilise exploration competencies and apply learnings from the Cue Project.

Source: MGV Presentation 03/05/22

MGV believes that this delivers a long-term pipeline of opportunities for the company as multiple targets are untested and have witnessed very limited exploration historically.

The company’s scheduled work plan across various areas is as given below:

Scheduled work plan (Source: MGV Presentation 03/05/22)

Sustainability and ESG

MGV has been focusing on sustainable exploration and setting goals that align with the ESG (environment, social & governance) norms.

On the community and social front, MGV has been making a positive contribution to the local community through working relationships, education and sponsorships, and direct and indirect employment opportunities.

MGV has shown commitment to forming and maintaining long term relationships with indigenous stakeholders and providing them opportunities.

Source: MGV Presentation 03/05/22

Furthermore, MGV prioritises its people and keeps them safe, healthy and engaged.

MGV also strives to minimise its impact on the environment and believes that there is potential to reduce future emissions through alternate power models.

Bottom Line

All in all, MGV has a total mineral resource that is still growing, with a high-grade gold project. The company has an opportunity for additional discoveries and resource growth and remains suitably funded amid a strong AUD gold price environment.

All eyes remain on MGV’s upcoming news flow, which includes mineral resource update, further drilling at Amarillo, Big Sky & Mosaic, regional drilling – new targets, EVN JV - diamond & AC drilling.

MGV stock was noted at AU$0.285 on 11 May 2022.