Musgrave Minerals reports high-grade gold at West Island; EVN takes up management of JV

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Musgrave Minerals reports high-grade gold at West Island; EVN takes up management of JV

MGV Cue Project
Image source: MGV Presentation, dated 18 November 2021

Highlights

  • The diamond drilling at Cue Joint Venture confirms the potential for multiple high-grade basement gold lodes within the dolerite sill at West Island.
  • JV partner Evolution Mining has elected to act as Earn-in Manager from 1 January 2022 and has increased its exploration budget in H2 2022.
  • Diamond drilling is continuing at West Island to test the basement beneath regolith gold mineralisation on Lake Austin.

Musgrave Minerals Limited (ASX: MGV) has reported high-grade gold results at West Island on the Cue Join Venture over Lake Austin. The Western Australia-based Cue JV is jointly owned by Musgrave Minerals and Evolution Mining Ltd. The current diamond drilling returned high-grade basement gold mineralisation on West Island prospect where aircore results continue to extend the large regolith gold mineralisation.

ALSO READ: Musgrave Mineral (ASX:MGV) buoyed on further high-grade results at West Island

The West Island zone is part of a broader regional 7km-long anomalous gold corridor within the Cue JV tenements. The mineralisation at West Island is hosted within a differentiated dolerite intrusive sill, similar to that hosting the high-grade Great Fingall and Golden Crown deposits (combined 4.4Mt @ 14.1g/t Au for 2.0Moz gold) 25km to the north at Cue.

Musgrave Minerals on consistent success in gold exploration and more!- Expert Talks Mr Robert Waugh

Lake Austin Diamond Drilling Program Results

The diamond drilling results continue to identify multiple, new northwest trending lodes which are oblique to the favourable dolerite host unit at West Island.

Significant diamond core intercepts from the December 2021 quarter include:

  • 26m @ 41.5g/t Au from 160.74m (21MODD025) including:
    • 0.41m @ 400.2g/t Au from 160.74m
  • 6.0m @ 2.7g/t Au from 125m (21MODD033)

The intersections are associated with extensive gold in regolith mineralisation which AC drilling has extended for at least 1.6km of strike length at West Island. The results above also confirm the geological model developed at West Island.

ALSO READ: Musgrave (ASX: MGV) reports gold success at Amarillo Prospect and Waratah Zone

The diamond drilling to date has only tested a small area of basement at West Island where the mineralisation remains open along strike and at depth. Musgrave Minerals highlighted that diamond drilling at West Island has recommenced and will progress through the March quarter 2022. The results are currently pending for a further five diamond holes.

Diamond drilling is aimed at delineating the potential scale of mineralisation at West Island whilst it has begun to focus on the economic potential of previously identified gold bearing structures.

Lake Austin Aircore Drilling Program Results

The third phase of regional aircore drilling has been completed on Lake Austin under the Musgrave – Evolution Joint Venture. The results continue to delineate the favourable dolerite host sill along strike which is important for hosting the better grades at West Island. Results from a further 72 aircore holes are pending.

ALSO READ: Potential new gold lodes bolsters Musgrave Minerals gold quest at Cue

Recent aircore results at West Island

Source: Copyright © 2022 Kalkine Media®, Data Source: MGV Update, dated 27 January 2021

Evolution Mining assumes management of Cue JV

Evolution has elected to act as the Earn-in Manager from 1st January 2022 and has increased its budget for exploration. The recent development will free-up Musgrave’s personnel to accelerate activities on Musgrave’s 100% tenure. Evolution, that initially committed to AU$5 million exploration budget to fund further drilling at Cue in FY22 have now increased the JV budget for H2 2022.

Evolution’s recent decision is driven by the following intent:

  • For accelerating exploration and delineating the scale of the gold system at West Island
  • For testing further gold-in-regolith aircore anomalies and defining new diamond drilling targets through aircore drilling.

The revised and accelerated budget adds an additional AU$3-6 million for a revised minimum total budget of AU$8 million for FY22.

ALSO READ: Musgrave Minerals’ (ASX: MGV) significant exploration progress expediting near-term gold production

Ongoing exploration at Cue JV

Source: Copyright © 2022 Kalkine Media®, Data Source: MGV Update, dated 27 January 2021

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