The only way is up for the Cue project’s gold resource. Pic: Via Getty Images
Musgrave continues to demonstrate scale potential at Cue with more shallow, high-grade gold
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Musgrave Minerals’ Cue project continues to reveal the significant untapped gold potential with drilling at the Amarillo, Big Sky and Numbers East prospects delivering still more shallow, high-grade gold outside of the existing resource.
Musgrave Minerals (ASX:MGV) is setting the stage for further resource growth at its Cue project in Western Australia, with drilling yielding more shallow, high-grade gold at three prospects.
One of the company’s main goals is to define a maiden resource for the Amarillo prospect, further boosting the Cue project’s current 927,000oz resource.
The latest results from drilling at Amarillo comprise 8m at 4.6 grams per tonne (g/t) gold from 34m, including of 1m at 21.5g/t from 35m.
Meanwhile, Big Sky drilling returned a top hit of 38m at 1.2g/t, including 1m at 17.4g/t from 50m, and 5m at 3.3g/t from just 7m. Big Sky North results included 2m at 3.3g/t from 34m.
Reconnaissance drilling at Numbers East, where no previous basement drilling has been undertaken, produced hits of 1m at 5.7g/t from 121m and 2m at 2.9g/t from 84m.
“These latest assay results continue to demonstrate the significant amount of gold in the district and highlight the upside discovery potential on the Cue gold project,” managing director Rob Waugh noted.
“The results will enable resource growth which has the potential to inform further development studies post the delivery of the stage one PFS late in March 2023.
“Drilling continues to focus on the top 120m of select zones at the Amarillo, Big Sky and East Numbers targets and all targets remain open at depth.”
Musgrave plans to include the Amarillo results into a 3D resource model to determine the strike and true width of the mineralisation, the results of which would then be incorporated in a maiden resource slated for release in the second half of the year.
The results from Big Sky highlight the strong potential to shift more of the resource into the higher confidence indicated category for inclusion in the next resource update.
This has the capacity to further enhance the resource and future pit designs.
Musgrave noted that that there were now a significant number of drill intersections located outside the optimised pit design that was based on the May 2022 resource, but that these intersections would not be included in the stage one prefeasibility study (PFS) scheduled for delivery in late March 2023.
Results from drilling at the Waratah and Break of Day North prospects are expected in a couple of weeks.
Break of Day is one of the highest-grade, undeveloped gold trends in Australia with a resource of 982,000oz at 10.4g/t for 327,000oz of contained gold.
It gives other gold deposits a run for their money, with very few undeveloped gold resources in Australia having as high a grade as Break of Day.
Musgrave is gearing up to deliver the results of the stage one PFS by the end of the current quarter, focusing on the technical and financial viability of the early years of the Cue gold project.
The study will focus on the project’s current indicated resources, while exploration and resource conversion drilling continues with the goal of extending the mine life beyond the first stage.
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.
