Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) has demonstrated the potential of the flagship Cue Project in Western Australia to produce further gold ounces after hitting high-grade mineralisation outside the resource boundary at Amarillo prospect, part of the Western Trend that also includes Big Sky deposit.
Reverse circulation (RC) drilling at Amarillo, 800 metres north of Big Sky, returned relatively shallow, high-grade gold intersections, including:
- 17 metres at 2.5 g/t gold from 18 metres, including 2 metres at 12.7 g/t from 33 metres;
- 3 metres at 14.6 g/t from 60 metres;
- 12 metres at 2.0 g/t from 47 metres; and
- 9 metres at 2.3 g/t from 23 metres.
Musgrave will continue resource definition drilling at Amarillo, intending to produce a maiden mineral resource for the deposit in early 2023 and grow the Cue Project’s 927,000-ounce resource further.
Exploration method delivers
“These results further confirm that our exploration methodology at Cue is continuing to deliver,” Musgrave Minerals managing director Rob Waugh said.
“Further drilling is planned at the Amarillo discovery to support a maiden mineral resource estimate expected to be completed in early 2023.
“The regional program of aircore drilling north of Amarillo has also identified new regolith gold occurrences that require further follow-up RC drilling.
“This target area is an extension of the dolerite unit that hosts the high-grade West Island gold mineralisation on the Evolution JV (joint venture) to the north.”
Drilling along the Western Trend to the north of Amarillo has also identified several near-surface, regolith-hosted regional gold targets within the southern extension of a dolerite unit.
This same dolerite unit extends 5 kilometres north into the Evolution joint venture tenements, host to the high-grade gold mineralisation at West Island.
Five new targets within the Cue Project have been identified, interpreted by Musgrave to be dispersed gold halos above a basement source. Aircore drilling results include:
- 10 metres at 1.2 g/t gold from 102 metres to EOH;
- 1-metre at 7.1 g/t from 113 metres; and
- 6 metres at 1.3 g/t from 42 metres.
Musgrave will follow-up on these targets with the first phase of RC drilling in July.