Musgrave Minerals (ASX:MGV) intersects further high-grade gold; shares up ~4.2%

Highlights

• The diamond drilling at the West Island prospect has helped in identifying new gold lodes with significant intercepts returned.
• Diamond drilling is underway to test basement targets, and AC drilling is progressing to delineate new basement target areas.
• An additional AU$5 million worth of exploration expenditure is proposed by EVN for the JV in H1 FY23.

In the latest key development, Musgrave Minerals Limited (ASX:MGV) has announced that it has received another strong set of assay results from the diamond and air core (AC) drilling programs at the Cue Joint Venture (JV).

After the key announcement, MGV shares were up by ~4.2% during the early hours of trading on 21 July 2022. MGV shares were trading at AU$0.250.

Results from the drilling

The high-grade gold results from diamond drilling have continued to support the identification of several new lodes within the favourable dolerite host unit at West Island.

Following assays were returned from the diamond drilling:

Source: MGV Announcement 21/07/2022

The company plans to advance diamond drilling through the September quarter to identify the potential scale of the mineral system at West Island.

Continuing drilling work

MGV is continuing diamond drilling to intersect possible ore grade intersections within a dolerite basement host unit at the West Island Prospect.

Besides this, the company is also continuing AC drilling at a regional scale to identify additional extensions to the favourable host dolerite stratigraphy, and most of the AC assays are yet to be received.

Source: MGV Announcement 21/07/2022

The West Island zone is part of a broad regional 7km-long anomalous gold corridor within the joint venture with Evolution Mining Ltd (ASX:EVN). EVN has drilled 13 diamond holes for 6,100m to date since electing to manage the JV in January 2022.

Key observations and current stance of MGV  

MGV believes that the gold mineralisation is related to a series of shear zones that obliquely crosscut a possible dolerite host unit. Moreover, the company has identified several separate mineralised shears in basement rocks along a 1.6km-long mineralised trend at West Island.

At present, assay results for five diamond drill holes are yet to be received, and MGV plans to continuously undertake follow-up diamond drilling to focus on understanding the possible scale of the mineralised system.

West Island location plan (Source: MGV Announcement 21/07/2022)

Under the Lake Austin AC drilling program, EVN has drilled 235 AC holes for around 23,782m to date. AC assay results are pending, and additional targets are yet to be basement drill tested.

Besides this, the AC drilling has also focused on the sedimentary and felsic sequences adjoining the favourable host dolerite at West Island. Assays are pending for this drilling.

Source: MGV Announcement 21/07/2022

EVN has put forward further AU$5 million exploration expenditure on the JV for H1 FY23, with two drill rigs presently on site.