Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) appears to be sitting on a bonanza with assays from the newly discovered Mosaic target south of White Heat within the flagship Cue Project in Western Australia returning bonanza-grade results and driving share prices higher.
Results from Mosaic include 9 metres at 110.5 g/t gold from 42 metres and 3 metres at 307.3 g/t from 45 metres in hole 21MORC414 and 2.8 metres at 122.2 g/t from 72 metres, including 0.8 metres at 381 g/t from 74 metres in 21MODD041.
These new intersections are down dip from the original Mosaic discovery intersection of 15 metres at 111.6 g/t from 25 metres in hole 21MORC232.
Shares have been as much as 19.65% higher to $0.335 intraday while MGV's market cap is approximately A$174.3 million.
A lot more gold
The good news for the company continues with strong results from resource infill drilling at its Big Sky prospect.
Drilling is underway at both prospects, which are part of Musgrave’s 100%-owned Cue Gold Project in Western Australia’s Murchison district.
Musgrave managing Director Rob Waugh said: “Our Cue Gold Project continues to deliver with more exceptional near-surface gold results in both RC and diamond drilling.
“We think there is a lot more gold to be found in this district.
“These results again demonstrate the upside of the project. Even modest tonnages at these sort of near surface grades could have a positive impact on the future project economics.
“We currently have three drill rigs on our 100% tenure and one on the Evolution joint venture.
“The immediate focus is on building the resource base and delivering a mineral resource estimate update late in the second quarter of 2022.”
Big Sky
The Big Sky Prospect is around 2 kilometres southwest of Break of Day.
New RC drill assay results include:
- 8 metres at 4.3 g/t gold from 23 metres, including 1-metre at 30.9 g/t from 23 metres;
- 9 metres at 1.0 g/t from 60 metres;
- 7 metres at 1.0 g/t from 42 metres;
- 6 metres at 1.1 g/t from 62 metres;
- 11 metres at 2.6 g/t from 122 metres, including 3 metres at 5.7 g/t from 122 metres;
- 3 metres at 22.6 g/t from 68 metres, including 1-metre at 62.6 g/t from 69 metres;
- 2 metres at 9.1 g/t from 64 metres; and
- 9 metres at 1.1 g/t from 111 metres.
Infill reverse circulation (RC) drilling at Big Sky continues to intersect significant near-surface gold mineralisation below thin transported hardpan cover along its 7-kilometre gold corridor.
The target extends over 2.6 kilometres of strike. Infill resource definition RC drilling continues to test the continuity, grade and down dip extent of the mineralisation at Big Sky in weathered and fresh basement rock.
Three zones of higher grade gold mineralisation are being tested, with a combined strike of more than 1.5 kilometres.
The company expects to report its initial mineral resource estimate in the second quarter of 2022.
About Cue Project
The Cue Gold Project is 30 kilometres south of the township of Cue in the Murchison district of Western Australia. The Lena and Break of Day deposits are only 5 kilometres from the Great Northern Highway, approximately 600 kilometres north of Perth.
The current resource estimate for the project is 6.4 million tonnes at 3.2 g/t for 659,000 ounces including the Break of Day deposit with 797,000 tonnes at 10.2 g/t for 262,000 ounces and the Lena deposit with 4.3 million tonnes at 2.3 g/t for 325,000 ounces.