The flagship Cue Gold Project continues to shine for Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF), which has fielded assay results highlighting high-grade mineralisation within and outside the Leviticus deposit during reverse circulation (RC) drilling.
Leviticus deposit has a total mineral resource estimate (MRE) of 42,000 tonnes at 6.0 g/t gold for 8,000 ounces gold, all in the inferred category.
The company drilled 46 RC holes for 2,799 metres at Leviticus during the current drill program – a combination of infill and extensional drilling.
Leviticus rising
The infill drilling was aimed at converting the resource within the stage one pre-feasibility study (PFS) open pit design into the higher confidence indicated category.
The infill intersections within the current MRE and the current stage one PFS open pit design include:
- 4 metres at 20.9 g/t gold from 38 metres; and
- 3 metres at 3.5 g/t from 51 metres.
The extensional drilling, conducted outside the current pit design, will potentially add tonnes for the stage two PFS. Current drilling has extended the mineralisation and a potential new lode has been identified in one drill hole.
Intersections outside the current MRE but inside the current pit design include:
- 2 metres at 41.5 g/t gold from 22 metres, including 1-metre at 79 g/t from 22 metres; and
- 3 metres at 2.5 g/t gold from 17 metres.
Potential new lode
Of particular note was one hole drilled at a high angle to the known mineralised trend which intersected a potential new lode, returning 3 metres at 7.3 g/t gold from 30 metres, including 1-metre at 18.2 g/t from 30 metres.
This new high-grade mineralised position is outside the current MRE and open pit design. This mineralisation is open in all directions and follow-up drilling is being planned.
The company will need to probe further to determine the strike and dip potential of this new lode, but recent drilling confirms the continued high-grade prospectivity along this trend.
Follow-up drilling is being planned with full assay results and drill hole details from the current program.
Musgrave managing director Rob Waugh said: “The strong gold results continue at Cue with this drilling at the Leviticus deposit aimed at extending the mineralisation and converting the inferred resource to the higher confidence indicated category.
“The Leviticus deposit is only 1.5 kilometres south of White Heat and is being considered as an early mining option to enable the pit to be utilised for either water storage or in-pit tailings in the subsequent years of development, thus reducing capital costs.”
Cue Gold Project
The project is some 30 kilometres south of the township of Cue in the Murchison district of Western Australia. The southern area gold deposits are only 5 kilometres from the Great Northern Highway, around 600 kilometres north of Perth on tenure wholly owned by Musgrave.
The current mineral resource estimate for the Cue Gold Project is 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.