Major update, Musgrave (ASX:MGV) increases Mineral Resource for Cue Project to 927,000 ounces

Highlights

• Musgrave Minerals has increased the total Mineral Resources at the Cue Project to 12.3Mt @ 2.3g/t gold for 927,000 ounces.
• MGV’s resource confidence continues to enhance with a 44% growth in total Indicated Resources to 435,000 ounces of gold.
• MGV is continuing drilling programs to define additional near-surface gold deposits on the Break of Day trend, and three rigs are currently active on the project.

In a latest development, Musgrave Minerals Limited (ASX:MGV) has announced a substantial Mineral Resource estimate (MRE) update on its fully-owned tenure at the flagship Cue Gold Project, located in the Murchison district of Western Australia.  The total Cue Project Mineral Resource Estimate has now grown to 12.3Mt @ 2.3g/t Au for 927,000 ounces of contained gold with the high-grade Mineral Resources hosted in the Break of Day trend totalling 982kt @ 10.4g/t Au for 327,000 ounces of contained gold.

Subsequent to this key update, MGV shares were noted in the green zone during the early hours of trading on 31 May 2022. MGV stock was trading at AU$0.310, up by 3.333% on 31 May 2022.

MGV believes that the latest increase in Mineral Resources enhances the future development potential of the project. MGV remains optimistic that it can continue to expand its resource base as exploration drilling continues to intersect high-grade gold on new regional targets.

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Source: MGV Presentation 03/05/22

The updated MRE comprises significant additions from the new White Heat Mosaic and Big Sky deposits. Drilling to date at these deposits has focussed on the top 100 to 160m. The maiden MREs for both prospects are as follows:

• 185kt @ 11.0g/t gold for 65,000 ounces for White Heat-Mosaic
• 65Mt @ 1.2g/t gold for 173,000 ounces for Big Sky

MGV anticipates this near-surface high-grade part of its total resource base to drive significant future value. Moreover, the Company’s exploration efforts will continue to focus on identifying and testing near-surface, high-grade gold targets to further grow the resource base.

Source: MGV Announcement 31/05/22

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Updated MREs for other deposits

MGV’s resource confidence continues to enhance, with a 44% growth in overall Indicated Resources to 435,000 ounces of gold.

MGV also updated MREs for numerous satellite deposits, including Numbers, Leviticus, Rapier South, Jasper Queen and Gilt Edge. Although the resource estimates for these deposits witnessed no material changes to the total ounces, they, however, can now be reported as complying with JORC 2012 reporting.

Source: MGV Presentation 03/05/22

MGV believes that the Mineral Resources at the Cue Project are some of the highest grade, undeveloped gold resources in Australia. Moreover, the near-surface nature of the resources indicates the amenability of a significant component of all deposits to open-pit mining methods.

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Expansion of Pre-feasibility Studies

MGV has been parallelly undertaking pre-feasibility level studies on the Break of Day and Lena deposits. These studies included numerous vital works and have delivered overwhelmingly positive results to date.

Based on the latest resource upgrade and the findings to date from the pre-feasibility level studies, MGV believes the Cue Project to have attained the critical resources required to continue on the standalone development pathway.

Source: MGV Presentation 03/05/22

Currently, MGV is looking to expand the studies to integrate the White Heat-Mosaic and Big Sky deposits. However, there exist challenges of reliable estimate cost inputs and schedules to a suitable standard.

MGV expects the current work being undertaken to offer a comprehensive technical understanding of the Cue Project. This will also put the project in a sweet spot to fast-track progress through to full feasibility and towards a decision on mine development when cost conditions have returned to a more stable level.

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Current and upcoming engagements

Going forward, MGV plans to continue undertaking further regional, extensional and infill drilling programs to continue to grow resources at the Cue Project. Major focus will remain on the very high-grade Break of Day stratigraphic trend hosting the Break of Day and White Heat-Mosaic deposits.

MGV’s current engagements include the following:

Source: MGV Announcement 31/05/22

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Multiple new mineralised, near-surface, moderate to high-grade gold zones have been identified through regional drilling, including Amarillo and the Waratah trend. MGV believes that the resource estimates are yet to be defined at these zones and warrant further drilling.