Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) has delivered more encouraging shallow gold results from reverse circulation (RC) drilling at the Amarillo, Big Sky and Numbers East prospects of the flagship Cue Gold Project in Western Australia’s Murchison district.
Standout assays include:
- 8 metres at 4.6 g/t gold from 34 metres, including 1-metre at 21.5 g/t from 35 metres;
- 38 metres at 1.2 g/t from 50 metres, including 1-metre at 17.4 g/t from 50 metres; and
- 2 metres at 3.3 g/t from 34 metres
In addition, the company completed a reconnaissance RC drilling program over a new target area east of the Numbers deposit on a 400-metre spaced regional drill traverse with results including:
- 1-metre at 5.7 g/t gold from 121 metres; and
- 2 metres at 2.9 g/t from 84 metres.
Musgrave is awaiting assays for Waratah and the new Break of Day North targets, which are expected in two weeks.
The company’s RC drilling has resumed at Cue this week and activities associated with the stage 1 pre-feasibility study (PFS) are continuing to advance.
"Significant amount of gold"
Musgrave managing director Rob Waugh said: “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.
“The results will enable resource growth which has the potential to inform further development studies post the delivery of the Stage 1 PFS late in March 2023.
“Drilling continues to focus on the top 120 metres of select zones at the Amarillo, Big Sky and East Numbers targets and all targets remain open at depth.”
About the project
The Cue Gold Project is about 30 kilometres south of the township of Cue in the Murchison district of Western Australia.
The current mineral resource estimate for the Cue stands at 12.3 million tonnes at 2.3 g/t gold for 927,000 ounces including the Break of Day High-Grade Trend and the Moyagee Western Trend both in the southern area of the project.
The new gold discoveries at Amarillo and along the Waratah trend are all outside the existing resource areas.
Musgrave is working towards the delivery of a stage 1 pre-feasibility study (PFS) this quarter with a focus on the technical and financial viability of the early years of the Cue Gold Project.
The study will focus on the project’s indicated mineral resources whilst exploration and resource conversion drilling will continue, aiming to extend the mine life beyond Stage 1.
Forward plan
The next steps at Cue include:
- RC drilling results for the Waratah and Break of Day North targets - expected late February;
- RC drilling of new and existing targets has recommenced with the aim of growing the current resource base;
- A regional aircore drilling program will commence in late February on new target areas at Cue; and
- Work to inform the stage 1 PFS for the Cue Gold Project is continuing with final study expected late March 2023.