Musgrave Minerals (ASX:MGV) reports action-packed June 2022 quarter

Highlights

• Musgrave Minerals’ Total Mineral Resources at the Cue Gold Project increased by 41% during the June quarter.
• MGV is continuing regional exploration drilling, with AC and RC drilling assays pending for several new target areas.
• MGV has also received significant intercepts from the recent work and is continuing exploration activities across various locations.
• MGV appointed Mr Anthony Buckingham as General Manager – Development.

Musgrave Minerals Limited (ASX:MGV) is an Australian explorer and developer committed to developing a sustainable and profitable gold mining business. The company has reported its progress for the quarter ended 30 June 2022.

In June quarter, MGV updated resource at the Cue Gold Project, with a 41% increase in resources to 12.3 Mt @ 2.3g/t Au for 927,000 oz gold.

This represents 47% of the total project Mineral Resources and provides a boost to MGV’s resource confidence.

Significant developments during the June quarter

Throughout the quarter, MGV continued exploration and resource drilling and received further favourable results from the Amarillo target north of Big Sky.

New target areas also witnessed first pass AC drilling, final assays for which are currently pending. This drilling was focused on high titanium basalt unit hosting the high-grade Break of Day and White Heat-Mosaic deposits.

Source: © 2022 Kalkine Media®

MGV looks to continue development studies to integrate these MREs in Q1 FY23 with a focus on high-margin opportunities.

Additionally, MGV is continuing several works that can form the basis for the conversion of the Exploration Licence to a Mining Lease at Big Sky.

The company has initiated a Resource conversion drilling (Inferred to Indicated) at White Heat-Mosaic and Big Sky with a focus on the top 120m. The initial phase of resource infill and conversion drilling at Break of Day and Lena comprising RC pre-collars with diamond tails has been completed, and assays are currently pending.

Plan showing Cue prospect locations (Source: MGV Announcement 28/07/2022)

Key findings at Amarillo and Western trend

MGV also concluded a regional AC drilling program including 318 holes for around 10,000m to cover numerous new regional targets. The company is yet to receive the assays for this drilling.

At Amarillo, significant near-surface gold mineralisation has been intersected through RC drilling, and new intersections include the following:

Source: © 2022 Kalkine Media®

MGV has now kicked off additional follow-up drilling to conclude an initial maiden MRE at Amarillo in early 2023.

MGV has identified five new targets on the Western Trend to date with the following new intersections:

• 10m @ 1.2g/t Au from 102m to EOH (22MUAC048)
• 1m @ 7.1g/t Au from 113m (22MUAC265)
• 6m @ 1.3g/t Au from 42m (22MUAC094)

Work in progress at Evolution Mining JV

EVN has drilled 13 diamond holes for 6,100m, and several new lodes have been identified adjacent to the positive dolerite host unit at West Island. Currently, assays for five diamond drill holes are pending, and notable new diamond core intercepts at West Island include the following:

Image Source: MGV | Data Source: MGV Announcement 28/07/2022

EVN will continue diamond drilling throughout the September quarter. At Lake Austin, EVN has drilled 235 AC holes, of which assays are pending for most of these drillings and targets in the northern zone are yet to witness basement drill testing.

Besides this, MGV has purchased and processed multi-client aeromagnetic data and also completed a regional gravity survey over selected areas of the tenements. The company is currently engaged in integrating datasets with present geological data to enhance targets for follow-up field checking and surface geochemical sampling.

Ongoing work across projects  

MGV is continuing various activities across its 100% projects, while EVN is continuing work across the areas under the EVN JV. These activities include:

Data Source: Company update, Image: © 2022 Kalkine Media®

Key appointment and ESG focus

During the quarter, MGV appointed Mr Anthony Buckingham, an experienced mining engineer, as General Manager – Development with effect from early July. Mr Buckingham will initially focus on development studies and delineating an optimal development path for MGV’s wholly owned Cue Gold Project.

MGV is committed to ensuring that its sustainability goals are being met now as well as in the future. Key areas to focus throughout the business have been identified through a Sustainability Review undertaken by an external consultant.

MGV seeks to advance further to deliver exploration success in a safe and responsible manner. The explorer is committed to developing a profitable gold mining business with ESG considerations combined into its decision-making.

Cash position and investment stance

The June quarter saw MGV remain in a strong financial position, with AU$10.6 million held in cash at the end of the quarter.

Besides this, MGV’s investment in Legend Mining Limited (ASX:LEG) was valued at ~AU$0.6 million based on holding 12.5 million shares at the price of AU$0.05 per share. In addition, MGV’s holding in Cyprium Metals Limited (ASX:CYM) is valued at around AU$0.1 million based on a price of AU$0.10 per share.

MGV stock was noted at AU$0.240 on 28 July 2022.