Musgrave Minerals Ltd (ASX:MGV) (OTCMKTS:MGVMF) (FRA:6MU) is higher after receiving further high-grade reverse circulation (RC) gold assay results from the new White Heat prospect, 300 metres south of Break of Day on its 100%-owned ground at its flagship Cue Gold Project in WA’s Murchison district.
Results of up to 11 metres at 19.6 g/t gold and 21 metres at 7.4 g/t saw seen shares rise more than 8.5% to A$0.38 and mineralisation remains open down plunge with further drilling scheduled to begin in two weeks.
Assays from further follow-up drilling within the new gold corridor identified west of Lena linking targets 5, 14 and 20 are expected in early April.
Consistent news flow expected
Musgrave managing director Rob Waugh said: “These high-grade, near-surface gold results from White Heat further highlight the discovery potential of the project.
“Exploration is continuing to deliver strong results and add value for our shareholders.
“Drilling will resume at White Heat in a few weeks as we continue to define the limits and plunge of the mineralisation. At a regional level, we are continuing to drill to better define the new gold corridor 800 metres west of Lena that is continuing to produce high-grade gold results in previously undrilled areas.
“Consistent news flow from these activities can be expected over coming months.”
The company's market cap is approximately A$157.3 million and this has seen the company promoted to the ASX All Ordinaries Index, which represents the 500 largest companies in the Australian equities market by market capitalisation.
White Heat Prospect
The mineralisation at White Heat, formally Target 2, has now been intersected over a strike extent of up to 100 metres with drilling at depth and along strike continuing.
Twenty-five phase 1, RC drill holes have been completed to date, with assays now received for all completed holes.
Drill holes are sited at about 40 metres intervals along 20 metres spaced traverse lines.
Significant new intercepts from 1-metre samples include:
➢ 11 metres at 19.6 g/t from 48 metres including:
- 2 metres at 94.0 g/t from 48 metres including 1-metre at 155.2 g/t from 48 metres
➢ 21 metres at 7.4 g/t from 64 metres including:
- 1-metre at 35.9 g/t from 64 metres; and
- 12 metres at 9.9 g/t from 73 metres including 3 metres at 8.7 g/t from 73 metres; and 1-metre at 84.5 g/t from 83 metres
➢ 2 metres at 6.5 g/t from 134 metres
One-metre resamples
Resamples of 6-metre composite samples at 1-metre intervals from RC drill holes at White Heat have returned results including:
- 2 metres at 5.6 g/t from 36 metres;
- 2 metres at 2.6 g/t from 38 metres; and
- 5 metres at 1.0 g/t from 77 metres;
The White Heat mineralisation has a similar strike to the Starlight lode at Break of Day, 400 metres to the north, and is hosted within a basalt package, thought to be the same stratigraphy as that hosting Starlight.
A leached near-surface zone is present where gold is depleted in the upper saprolite and the mineralisation is open down plunge.
The combination of 6-metre composites and 1-metre individual samples from the RC holes drilled in the current program have been analysed.
An additional RC drill rig has been sourced and will begin drilling early next month to follow up on these high-grade, near-surface results.
Musgrave 100%-owned tenements
The first phase of RC drilling at the White Heat target is now complete to about 125 metres vertical depth and further drilling will start in two weeks.
Follow-up aircore drilling is underway to define the strike extent of gold anomalism within the new gold corridor identified west of Lena, with assays expected in mid-April.
An additional RC drill rig has been sourced and will commence in two weeks.
This drilling will focus on defining the basement source of gold anomalism at Targets 5, 14 and 20 and is scheduled to begin in early April.
Works for the pre-feasibility study at Break of Day and Lena are underway with a focus on long lead-time items.
Evolution joint venture
Diamond drilling to follow-up the extensive regolith gold anomalies identified in the regional aircore drilling program on Lake Austin as part of the joint venture with Evolution Mining Ltd (ASX:EVN) has commenced.