Musgrave Minerals Ltd (ASX:MGV) (OTCMKTS:MGVMF) (FRA:6MU) has returned thick intersections in reverse circulation (RC) drilling at Big Sky prospect along a new gold corridor southwest of Lena deposit at the Cue Project in Western Australia.
Drilling has revealed thick oxide gold mineralisation, with intersections including:
- 84 metres at 1.4 g/t from 24 metres, including 12 metres at 6.6 g/t from 66 metres;
- 42 metres at 1.1 g/t from 30 metres;
- 36 metres at 1.2 g/t from 30 metres; and
- 12 metres at 1.7 g/t from 108 metres to EOH.
The thick intervals of gold mineralisation indicate the potential for a large well-mineralised gold system with discrete zones of high-grade mineralisation along >2.6 kilometres of strike and the mineralisation remains open to the north, south and down dip.
“Possibility of higher-grade zones”
Musgrave managing director Rob Waugh said: “The RC drilling has confirmed the potential for significant gold mineralisation at Big Sky and the possibility of a number of higher-grade zones within the broader anomalous trend.
“Drill traverse line spacing remains at more than 100 metres for much of the target area and assays are pending for more than 50 RC drill holes.
“The mineralisation is masked from surface by a thin veneer of transported hardpan cover."
He said the near-surface nature of the oxide, regolith gold mineralisation was expected to be favourable for open-cut mining.
“Regional drilling will continue with the aim of defining discrete higher-grade zones for resource definition.”
RC drilling ongoing
A 15,000-metre follow-up RC drilling program to define the extent of gold mineralisation in the regolith and basement rock beneath is continuing with 74 RC drill holes completed to date.
Assays are pending for more than 50 drill holes.
A diamond drilling program is set to begin in late June at Big Sky.
Plan showing Big Sky Prospect, drill hole collars and new assay results.
The current resource estimate for the Cue Gold Project totals 6.4 million tonnes at 3.2 g/t gold for 659,000 ounces including the Break of Day deposit with 797,000 tonnes at 10.2 g/t for 262,000 ounces and Lena deposit with 4.3 million tonnes at 2.3 g/t for 325,000 ounces located 130 metres to the west of Break of Day.
Ongoing activities
The following activities are ongoing on 100%-owned Musgrave tenements:
- Phase one diamond drilling at White Heat and Big Sky has commenced;
- Works to progress the pre-feasibility study at Break of Day and Lena are continuing with additional diamond drilling for metallurgical testing and geotechnical analysis completed and analysis of the core and samples has commenced;
- Hydrological drilling will commence next week; and
- Heritage surveys on new target areas will commence next week.
In addition, assay results from the seven-hole, diamond drilling program to follow-up the extensive regolith gold anomalies identified in the regional aircore drilling program on the Lake Austin JV with Evolution Mining Ltd (ASX:EVN) has been completed with assay results expected in late June.