Musgrave Minerals soars 17pc on high-grade gold drilling results
Mining & Resources
My pretty ... Musgrave Minerals shares spike on drilling results. Picture: Getty
With gold hitting 10-month highs, it seems every ASX-listed gold play is out spruiking its assets and basking in the high price of the precious metal.
Musgrave Minerals has been the pick of today’s crop, delighting investors after announcing none too shabby drill results including best intersection so far at its Break of Day deposit.
The Perth-based company (ASX:MGV) intersected high-grade gold south of the current resource at Break of Day of 11 metres at 54 grams per tonne gold including 5 metres at 109.6 grams per tonne and 4 metres 10.9 grams per tonne.
Investors were pleased with the results, lifting the stock’s share price to an intraday high of 8.4c, up 17 per cent, in morning trade.
The shares had settled back to 7.9c in lunchtime trade — up 10 per cent.
Musgrave managing director Rob Waugh said high-grade gold mineralisation at Break of Day remained open to the south and down plunge.
This drilling shows that the mineralisation at Break of Day extends to the south and is still open,” he said.
“We are yet to find the edges of the deposit and Break of Day deposit is proving to be a significant high- grade mineralised gold system.”
The current drill program at Break of Day includes 14 new drill holes largely targeted to extend the mineralisation beyond the current resource boundaries.
Break of Day hosts a combined (Indicated and Inferred) mineral resource of 868,000 tonnes at 7.15 grams per tonne gold for 199,000 ounces. Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
These new high-grade gold results will support the growth of the current mineral resource.
To date, assays have been received for four drill holes at Break of Day with further gold assay results from the remaining holes expected over the next four weeks.
The Break of Day gold deposit forms part of Musgrave’s Cue project which lies in the highly prospective Murchison region of Western Australia.
The rise and rise of gold
Rising geopolitical tensions following North Korea’s nuclear test has pushed up the price of gold as investors scramble for the haven allure of the precious metal.
The metal has recently crossed over the $1300 an ounce mark, the first time in 10 month. Overnight, gold was trading at $1338.90 an ounce.