Musgrave may have just uncovered another high-grade gold lode at Cue

Musgrave Minerals has identified a possible new high-grade lode along the Break of Day corridor – already one of Australia’s highest grade undeveloped deposits – at its Cue project in WA.

Ongoing drilling at Musgrave Minerals’ (ASX:MGV) Cue project in the Murchison region of Western Australia has hit more high-grade gold just 50m north of the Break of Day deposit.

A single reverse circulation (RC) drill hole designed to test a new target zone returned a hit of 4m at 8.2 grams per tonne (g/t) from within a broader intercept of 14m at 2.8g/t from 50m.

The potential new lode has a potential strike of up to 100m and is hosted within the high titanium basalt, a known favourable stratigraphic host at Break of Day.

“The intersection north of Break of Day may represent a new, untested high-grade lode and demonstrates the ongoing discovery opportunity within this system,” managing director Rob Waugh explained.

“This is a positive result as it bodes well for further discovery upside within the favourable Break of Day stratigraphic package.

“More drill testing is required to confirm the strike and dip extent of this new lode.”

Break of Day currently hosts a resource of 982,000 tonnes at 10.4g/t for 327,000oz of contained gold – making it one of few undeveloped gold resources in Australia with such a high grade.

Seventy per cent of the Break of Day resource is in the higher confidence indicated category.

Musgrave is working to increase Cue’s combined 927,000oz resource further this year, with Waugh saying further results from White Heat-Mosaic, White Light and the new Waratah zone all have the potential to add to the resource base.

Extensional RC drilling has delivered intercepts of 4m at 5.2g/t from 29m at the White Heat-Mosaic prospect and 2m at 34.7g/t from 84m, including 1m at 64.3g/t from 84m, from the White Light lode.

Drilling also intersected a possible new splay lode off White Light with a hit of 2m at 14.7g/t from 100m.

Both targets are located within the Break of Day system and drilling has extended them beyond the current resource boundary.

Drilling at the Waratah prospect, meanwhile, has returned 3m at 8.4g/t from 43m, 1m at 10.2g/t from 56m and 2m at 4g/t from 22m.

The Waratah trend is about 400m east of Break of Day and interpreted to extend for over 4km of strike.

Musgrave is advancing towards the release of the results of the stage one PFS in late March, 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.