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Musgrave Minerals aims for the blue sky at Big Sky following positive gold assay results

Last updated: 01:42 12 Aug 2021 BST, First published: 01:31 12 Aug 2021 BST

Musgrave aims for the blue sky at Big Sky following positive assay results
RC drilling is ongoing at Big Sky testing the 2.6-kilometres long, well-mineralised system.

Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) continues to define consistent, near-surface, gold mineralisation at its Big Sky prospect.

Big Sky is becoming an integral part of Musgrave’s 100%-owned flagship Cue Gold Project in Western Australia’s Murchison district and provides the potential for resource growth

This prospect sits along the new gold corridor southwest of the Lena deposit (4.3 million tonnes at 2.3 g/t for 325,000 ounces of contained gold) and Break of Day deposit (797,000 tonnes at 10.2 g/t for 262,000 ounces of contained gold).

In total, the current resource estimate for the Cue Gold Project totals 6.4 million tonnes at 3.2 g/t gold for 659,000 ounces.

Musgrave hopes to add to resource

Musgrave has been conducting RC drilling to better define the gold mineralisation at Big Sky. 

The prospect is part of a 15,000-metre RC drilling program, which has now been extended to 20,000 metres.

Drilling at Big Sky has continued to intersect gold mineralisation below thin transported cover (1-10 metres) in areas that previous explorers had left untouched. 

The Big Sky gold anomaly is defined over 2.6 kilometres of continuous strike where it remains open to the north and south. 

RC drilling is underway to test the continuity, grade and down dip extent of the mineralisation in oxide and fresh basement rock.

Positive results

So far, the results have been positive. 

Musgrave today released assays from 35 RC drill holes with new intersections including:

  • 12 metres at 1.1 g/t gold from 126 metres; 
  • 12 metres at 1.1 g/t from 42 metres; 
  • 18 metres at 2.0 g/t from 18 metres; 
  • 12 metres at 1.9 g/t from 54 metres; 
  • 18 metres at 1.2 g/t from 18 metres; 
  • 24 metres at 1.7 g/t from 24 metres; 
  • 48 metres at 0.8 g/t from 30 metres, including 6 metres at 3.5 g/t from 30 metres;
  • 30 metres at 1.0 g/t from 30 metres; and 
  • 12 metres at 1.0 g t from 54 metres. 

Results for infill drilling are still pending.

“Big Sky is proving to be a significant large-scale gold system and the RC drilling continues to return strong results of near-surface gold mineralisation within the 2.6-kilometre-long corridor," Musgrave managing director Rob Waugh said.

“The continuity of the broad near-surface gold mineralisation intersected to date is very encouraging and demonstrates we are onto a large gold system at Big Sky with the potential to deliver a significant near-surface resource.”

Waugh said that while assay turnaround had been slow, it was starting to improve. 

Musgrave is still awaiting assays for more than 57 RC drill holes from Big Sky and will update the market accordingly.  

The company also reported all composite intervals assaying above 0.5 g/t, which it considers significant where they occur over broad widths. 

One metre sample results due

There is plenty for investors to look forward to with regard to Musgrave’s coming news flow.

One-metre samples from anomalous gold composites have been submitted for individual analysis with results expected in September-October. 

However, the company does note that a number of the deeper drill holes steepened from the planned dip and failed to intersect the projected target. 

RC drill holes are spaced 40 metrres apart along 40-100-mmetre spaced traverse lines with further drilling underway. 

Musgrave’s focus is on the higher grade and thicker intervals of gold mineralisation intersected to date. 

The extensive nature and continuity of the gold mineralisation supports the view that the Big Sky prospect has the potential to add to Musgrave’s existing resource base at Cue. 

A multi-element assaying campaign is also underway to provide geochemical data, which will help guide the geological interpretation and fingerprint the gold and pathfinder element associations in this highly weathered corridor to aid further targeting. 

One-metre resamples of previously reported six-metre composites from 24 resource definition RC drill holes at the Big Sky Prospect have confirmed the results from the six-metre composite sampling. 

Upcoming events

  • Musgrave is continuing its RC drilling program to better define the gold mineralisation at Big Sky prospect. So far approximately 129 holes have been completed, with further assay results expected in early September;
  • Follow-up RC drilling to define the basement source of gold anomalism at Target 14 is also continuing with further assays expected in early September;
  • One-metre resamples from six-metre composite samples of approximately 55 RC drill holes from Big Sky and Target 14 are expected in mid-September;
  • Diamond drill hole assays from the high-grade White Heat prospect are expected in mid-late August; and 
  • Works to progress the pre-feasibility level studies at Break of Day and Lena are continuing with additional metallurgical and geotechnical test work underway. First phase hydrological drilling has been successfully completed. 

Evolution JV progressing well

While Musgrave focuses on Big Sky, its joint venture agreement with Evolution Mining Ltd (ASX:EVN) over the Lake Austin portion of the Cue Gold Project is progressing well, with plenty of assays to come from this portion of the project as well.

The JV is conducting follow-up diamond drilling at the West Island and Austin North prospects on Lake Austin. 

Four holes have been completed in the current program, with assays now pending. 

Aircore drilling on Lake Austin is also continuing to define additional targets for basement diamond drill testing.

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