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- Musgrave Minerals reported a significant increase in Break of Day's mineral resource.
- The Cue project's regional drilling program has been quite a success, with anomalous gold demonstrated by 80 per cent of the targets tested.
- Exploration on Lake Austin is also advancing at right pace.
Gold exploration by Musgrave Minerals Limited (ASX: MGV) has scaled new heights at the Cue Project, where it has met with phenomenal drilling success. The impressive drilling results came at a time when the world was witnessing an impeccable gold rally, adding to the lustre of gold-related investments.
All in all, the ongoing market conditions have been complementing the Company’s active engagement across its robust gold project portfolio. Let us explore some critical developments made during the six months ending 31 December 2020, which became an integral part of the Company's progress.
Resource Upgradation at Break of Day
The exceptionally positive outcomes from 2020 reverse circulation (RC) and diamond drilling (DD) programs resulted in the Break of Day resource update. Several gold lodes remain open down plunge both at Lena and Break of Day, highlighting the scope for further expansion of the resources.
The recent resource update at Cue vis-à-vis July 2017 Mineral Resource delivered the following:
- Total contained ounces- An increase of 31 per cent
- Indicated Resources- A rise of 58 per cent to 175,900 ounces of gold
- Gold grade- A surge of 42 per cent to 10.2g/t Au
A sizeable regional drilling program
Musgrave's 100% owned tenure at Cue recently witnessed an extensive regional drilling program to test 25 new gold targets. As part of the regional drilling program, the Company completed 445 aircore holes for over 25,000 metres. Significantly, 20 out of the 25 targets exhibited anomalous gold in the regolith.
White Heat (Target 2)
- 20MUAC008- 5 metres @ 13.4g/t Au from 28 metres
- 20MUAC009- 8 metres @ 8.4g/t Au from 41 metres
- 20MUAC233- 2 metres @ 30.3g/t Au from 41 metres
- 20MUAC236- 5 metres @ 8.3g/t Au from 23 metres
- 20MUAC332- 1 metres @ 12.0g/t Au from 28 metres
- 20MUAC397- 6 metres @ 10.6g/t Au from 30 metres
- 20MUAC412- 6 metres @ 5.2g/t Au from 24 metres
- 20MUAC407- 6 metres @ 4.6g/t Au from 36 metres to EOH
- 20MUAC396- 6 metres @ 3.2g/t Au from 36 metres to EOH
- 20MUAC210- 4 metres @ 3.5g/t Au from 43 metres to EOH
- 20MUAC402- 30 metres @ 1.1g/t Au from 12 metres to EOH
Significant drilling results from other targets are illustrated below:
Source: Copyright © 2021 Kalkine Media Pty Ltd, Data Source: MGV ASX update, dated 12 March 2021
The Company intends to test the depth and strike extent of all the twenty targets, with follow-up RC drilling undertaken at the White Heat prospect in January 2021, yielding strong early results.
Exploration Progress at Lake Austin
Two phases of aircore (AC) drilling were effectively wrapped up at Lake Austin (under the Evolution Joint Venture), with 436 holes drilled for approximately 49,000 metres. Multiple regolith gold anomalism zones were identified, which suggest the presence of substantial mineralised systems in the underlying bedrock.
The company has kicked off a diamond drilling program focused on testing the basement for the primary source of the regolith gold anomalism.
A Snapshot of Corporate Activities
In December 2020, Musgrave successfully raised AUD 16 million before costs through a share placement, which received firm support from institutional, corporate and sophisticated investors. The company raised an additional AUD 3.5 million from an SPP (Share Purchase Plan) completed in January this year.
The company's unlisted options have undergone several changes during the period, with Musgrave exercising 12.85 million unlisted options to raise approximately AUD 1.47 million.
Musgrave holds over 1.3 million ordinary shares in Cyprium Metals Limited and 12.5 million shares in Legend Mining Limited.
At the end of the period, the Company had cash and cash equivalents of more than AUD 22 million.
MGV shares closed at AUD 0.335 on 12 March 2021.