Musgrave builds strong PFS case with more high-grade gold at Cue
Musgrave is gearing up to deliver the results of a stage one pre-feasibility study for its Cue gold project in Q1 2023 and is strengthening the case with further high-grade results from drilling at the White Heat-Mosaic target.
Musgrave Minerals (ASX:MGV) has found more gold at the White Heat-Mosaic prospect outside the existing resource which has extended the high-grade gold closer to surface.
The most notable intersection from this drilling was 4m at 7.6 grams per tonne (g/t) gold from just 2m.
Musgrave is also having success with infill drilling, which is confirming grade and continuity of the existing resource with top hits like 5m at 80.2g/t, including 2m at 194.5g/t, from 12m and 8m at 19.8g/t from 37m, including 3m at 49.7g/t from 38m.
Managing director Rob Waugh said these were another strong set of results that confirmed the exceptional high grades in the near-surface gold mineralisation at White Heat-Mosaic.
“The deposits, including White Heat-Mosaic along the high-grade Break of Day trend, will be a cornerstone of future development of the Cue gold project,” he said.
In total, the Cue project currently has a resource inventory of 12.3 million tonnes at 2.3g/t for 927,000oz of contained gold.
That includes 982,000 tonnes at 10.4g/t for 327,000oz of contained gold along the Break of Day Trend – one of the highest-grade structures in Australia, and 9.8 million tonnes at 1.7g/t for 541,000oz of contained gold along the Moyagee Western Trend.
The White Heat-Mosaic deposit lies within the Break of Day Trend and accounts for 185,000 tonnes at 11g/t for 65,000 contained ounces of the resource. There is plenty of exploration blue sky though, with the deposit having only been modelled down to 160m.
Musgrave’s goal is to deliver a stage one PFS in the first quarter of 2023, focusing on the technical and financial viability of the early years of the Cue project.
Meanwhile, exploration and resource conversion drilling will continue to focus on extending the mine life beyond stage one.
Musgrave is awaiting the results for 51 drill holes from infill and extensional reverse circulation drilling at the Big Sky deposit.
Diamond drilling has restarted for geotechnical analysis to better define pit wall stability at Break of Day, White Heat and Big Sky, and follow-up drilling at the Waratah, Amarillo and East Numbers targets is currently on track to begin in mid-November.
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.