Is this a case of Starlight repeating for Musgrave?
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Special Report: Musgrave Minerals may be onto another rich zone of gold at its Cue project in Western Australia similar to the Starlight discovery that drove a 1000% rise in the company’s share price earlier this year.
The Starlight lode, part of the Break of Day deposit, was discovered when Musgrave (ASX: MGV) flipped the script on the accepted wisdom in regards to 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, it also gave the company a new model for targeting additional discoveries within the Cue project area.
Musgrave applied the model in planning a regional aircore/reverse circulation drilling program testing for Starlight analogues along trend from the discovery.
Assays from the first 49 aircore/reverse circulation (RC) holes completed as part of that program were announced on Thursday and suggest the company is onto something very interesting 400m to the south of Starlight.
Two holes drilled 20m apart at “Target 2” returned 5m at 13.4 g/t Au from 28m including 2m at 30.9 g/t Au from 28m and 8m at 8.4 g/t Au from 41m including 4m at 15.4 g/t Au from 44m respectively.
“This is a great start to the regional program,” Musgrave managing director Rob Waugh said.
“Any significant gold anomalism on these new targets is encouraging but to get these high grades from this reconnaissance program is a very exciting result.
Follow-up drilling at Target 2 is being planned and is expected to start in late October.
Drilling at targets 1, 3 and 7 also returned anomalous gold results from the regolith (weathered zone above the fresh rock), with further assessment required before follow-up drilling.
To date, approximately 12,000m has been drilled as part of the 17,000m-plus regional program. Sixteen of the initial 21 targets identified have been tested.
Musgrave is expected to announce a resource update for Break of Day including the Starlight and White Light discoveries in late October.
The deposit currently contains a resource of 868,000 tonnes grading 7.2 g/t Au for 199,000 ounces and is part of the broader resource at Cue, which stands at 6.45 million tonnes at 3.0 g/t Au for 613,000 ounces.
Musgrave shares were trading at 7.4c in March this year before the Starlight discovery and a surging gold price helped send them soaring to as high as 76c in early August.
They were trading at 51.5c on Wednesday.
This story was developed in collaboration with Musgrave Minerals, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.