Special report: Musgrave Minerals’ hopes of discovering a major gold system at its Cue Project in Western Australia’s Murchison region have been bolstered by the latest results from the promising Lake Austin North prospect.

Musgrave announced today that recent drilling targeting the A Zone at Lake Austin North had returned thick intercepts of gold mineralisation including 157 metres at 0.55 grams of gold per tonne from a depth of 90 metres and 144m at 0.5 grams of gold per tonne from 84 metres.

Two holes drilled at the C Zone at Lake Austin North returned intercepts not quite as thick but still significant: 66 metres at 0.85 grams of gold per tonne from a depth of 72 metres and 54 metres at 0.71 grams of gold per tonne from 84 metres.

Within all these broad zones of mineralisation were higher grade intervals.

Musgrave Managing Director Rob Waugh said: The thick, extensive gold intercepts continue to support the company’s view that Lake Austin North is a large, well-mineralised gold system and a new gold discovery.

“The Lake Austin North A and C Zones both have high-grade cores and drilling is continuing to piece together the geology to trace the strike and dip of the higher-grade gold lodes. The mineralisation is open north, south and down dip.”

Lake Austin North is one of 10 new high priority targets identified by Musgrave at Cue earlier this year through a gravity survey.

It sits under shallow salt lake cover, meaning it is a “blind” target, and is defined by a strong aircore gold anomaly more than 1km long.

Musgrave has had a fair degree of exploration success at Cue to date, particularly with the discovery of the high-grade Break of Day deposit, three kilometres to the south of Lake Austin North.

Break of Day contains an indicated and inferred resource of 868,000 tonnes at 7.15 grams of gold per tonne for 199,000 ounces of gold and is part of the broader Cue gold resource, which is 4.83 million tonnes at 2.84 grams of gold per tonne for 441,000 ounces of gold.

Musgrave has executed a non-binding term sheet to negotiate a mine management and profit sharing agreement with major shareholder Westgold Resources that is likely to lead to the commercialisation of the existing Cue resources.

The agreement doesn’t pertain to Lake Austin North or the other new regional prospects Musgrave is exploring.

Slower than anticipated progress with reverse circulation drilling at Lake Austin North has prompted the company to end the program ahead of time and switch to diamond drilling, which will allow for deeper penetration and provide better geological information.

Shares in Musgrave were up 0.1c to 6.5c in mid-morning trade on Monday.


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