Gold: Musgrave reignites Murchison hunt with 112.9g/t intercept, Exore recommends Perseus takeover
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Musgrave Minerals (ASX:MGV) has hit very high, thick and shallow gold at the new ‘Starlight’ discovery, part of its flagship 613,000oz Cue gold project in WA’s Murchison district.
Intercepts like 12m at 112.9 grams per tonne (g/t) gold 36m from surface (including 6m at 143g/t) sent the stock up +50 per cent to all-time highs in morning trade.
Starlight — consisting of multiple, steeply dipping quartz lodes — sits outside, but close to, the existing 199,000oz resource at Break of Day.
It has been defined over a ‘strike’ extent of 115m and remains ‘open’ down plunge – which means the explorer doesn’t know where the gold ends yet.
It is also very high grade where it approaches the surface, Musgrave says.
This current 36-hole, 7000m drilling program at Break of Day is about 60 per cent complete, but follow-up drilling at Starlight is already underway.
A diamond drilling program is due to kick off next week, which will culminate in a resource update for Break of Day (including Starlight) in late Q3 this year.
“This is a great start to the program and confirms the current model extending the mineralisation both up dip where it approaches the surface and down dip where it remains open,” Musgrave managing director Rob Waugh says.
“The bonanza high-grade, near surface mineralisation will enhance the open cut development potential of the deposit while the deeper mineralisation will enhance the underground potential.”
That implies a price of $10.5c per Exore share; a 69 per cent premium to the stock’s closing price of 6.2c on the 2nd of June.
Exore was up +40 per cent to 8.7c in morning trade. The board “unanimously recommends the scheme”.
In 2018, the explorer picked up 80 per cent of the Bagoe and Liberty projects in Côte d’Ivoire from WA goldie Apollo Consolidated (ASX:AOP).
Exore has now elected to exercise its pre-emptive right to acquire the remaining 20 per cent interest in the Bagoe and Liberty projects from Apollo, which blocks a previous deal with Perth-based Ibaera Capital Fund.
Perseus — which has two producing mines and another in development — is on track to produce more than 500,000oz of gold per year.
But the Sissingué operation Côte d’Ivoire currently has a mine life of three years. That’s where Exore comes in.
“With the acquisition of Exore’s land package, including defined mineral resources at the Bagoe project, we have the option of developing the Bagoe project into a new gold mine potentially using the Sissingué infrastructure, or alternatively, delineating further mineral resources that can be economically mined and trucked to our Sissingué plant for processing,” Perseus managing director Jeff Quartermaine says.
“Either option provides an opportunity to continue creating value for Perseus’s shareholders.”