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‘A lot more gold to be found’ at Cue after Musgrave delivers further bonanza-grade gold hits
Mining
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The success for Musgrave at its Cue project in WA’s Murchison continues, with drilling identifying new gold zones and returning more bonanza grades with a five-metre zone running 313.4g/t.
Musgrave Minerals (ASX:MGV) is unearthing multiple ‘Starlight’ lookalikes, with recent drilling at the Cue project revealing four potential new gold zones and one delivering an extremely high-grade and shallow gold hit.
A new target about 80m south of the White Heat prospect intersected two new parallel lodes that returned a top hit of 15m at 111.6 grams per tonne (g/t) gold from 25m, including 5m at 313.4g/t from 26m from hole 21MORC232.
Investors welcomed the news, sending Musgrave shares up over 13% to an early trading high of 38c.
Musgrave Minerals (ASX:MGV) share price chart:
The Starlight lode, part of the Break of Day deposit, was discovered when Musgrave flipped the script on the accepted wisdom regarding the orientation of gold mineralisation at Cue and decided to drill on a north-east/south-west orientation for the first time.
The breakthrough not only delivered a host of bonanza near-surface intercepts that have greatly improved Break of Day’s development prospects, but it also gave the company a new model for targeting additional discoveries within the Cue project area.
Musgrave managing director Rob Waugh is extremely bullish about the potential to find more gold at Cue, especially given the mineralisation within these new targets remains open in several directions.
“Drillhole 21MORC232 has a fantastic new high-grade result and has potentially identified two new lodes in close proximity to Break of Day,” Waugh said.
“The very high-grade intersection in 21MORC232 is near surface and only 80m south of White Heat.
“It supports our view that there is a lot more gold to be found at Cue.”
Drilling at a second ‘Starlight’-type analogue target, about 250m north of Break of Day, also intersected high-grade gold, including 1m at 16.5g/t from 73m and 1m at 14.4g/t from 90m.
Only one hole so far has tested this interpreted new lode position, with the mineralisation open to the east, west and down dip.
Meanwhile, extensional resource drilling at the White Heat prospect, 300m south of Break of Day, intersected 1m at 21.8g/t gold from 158m and 3m at 3.5g/t from 23m.
The mineralisation at White Heat remains open down plunge and has a similar strike to the Starlight lode.
Musgrave says it is also hosted within a basalt package of rocks thought to be the same stratigraphy as that hosting Starlight.
Strong resource growth potential
Importantly, all these new gold intersections are outside the current resource at the Cue project.
And Musgrave isn’t wasting any time in following up these exciting new intercepts.
“We currently only have a few drill holes testing these new lodes with further drilling planned to commence next week,” Waugh explained.
“We are expecting two additional drill rigs to arrive on site over the next week with a focus on growing the resource base and maintaining a pipeline of prospects for resource definition.”
Results from further drilling at Big Sky, Target 14 and the Evolution Mining (ASX:EVN) joint venture are expected this month.
This article was developed in collaboration with Musgrave Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
