It’s not surprising there is so much interest in Musgrave Minerals’ flagship Cue gold project when drilling just keeps delivering eyewatering gold grades and providing further evidence it is one of the highest grade undeveloped projects in Australia.

Musgrave Minerals’ (ASX:MGV) extensive drilling in the Murchison region of Western Australia has thrown up multiple high-grade hits above the current resource grade of 10.2 grams per tonne (g/t) at the Break of Day deposit.

Standout intersections within the current resource and stage one prefeasibility study open pit design included 1m at 845.1g/t from 24m from within a broader 15m at 60.3g/t from just 14m.

Another stellar hit comprised 2m at 248g/t from 36m from within 9m at 61.4g/t from 36m.

“These are fantastic results and continue to demonstrate the exceptional quality of the Cue gold project,” managing director Rob Waugh said.

“This and ongoing work is focused on further enhancing the project economics by growing resources, de-risking the project and adding to the initial five-year mine life.”

The stage one PFS showed the Cue project would be a very high margin, low-cost operation running for an initial five years and delivering a pre-tax net present value of $235m and pre-tax internal rate of return of 95%, with a quick nine-month payback.

The Break of Day deposit currently hosts a resource 797,000t at 10.2g/t for 262,000oz of gold.

The stage one PFS includes 668,000t at 7g/t for 149,300oz in open pit mining and a subsequent underground mine inventory of 484,000t at 4.8g/t for 75,200oz at Break of Day.

“Following the strong financial metrics of the stage one prefeasibility study in April 2023, the company has continued drilling to progress resource conversion and growth,” Waugh noted.

“This drilling is continuing to deliver excellent results at the Cue gold project in both extensional and infill drilling.”

Other very high-grade hits from Break of Day drilling included 17m at 35.7g/t from 40m, 7m at 20.2g/t from 94m, and 5m at 21.2g/t from 66m, including 1m at 84.3g/t from 67m.

The reverse circulation (RC) drilling at Break of Day was aimed at converting more of the resource to the indicated category, with 70% already in the higher confidence category.

Meanwhile, extensional drilling on the new Break of Day North lode, located about 50m north of Break of Day and outside of the existing resource, struck 1m at 19.5g/t from 62m.

The new high-grade lode is hosted within the high titanium basalt, a known favourable stratigraphic host at Break of Day.

Drilling at the Lena deposit also returned new high-grade intercepts inside the resource but outside the stage one PFS design, including 16m at 7.7g/t from 62m.

Regional drilling has also identified new targets of interest with upside potential, Musgrave noted. Further drilling is planned to begin in a couple of weeks.

The company is working to increase Cue’s combined 927,000oz resource further, with an update slated for release in the second half of this year.




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.