Musgrave Minerals Lt

MGV
End-of-day quote AUSTRALIAN SECURITIES EXCHANGE LIMITED - 07/19
0.084AUD
+16.67%

Musgrave Minerals : Opportunity to Extend Lena High-Grade Resource at Cue

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07/12/2019 | 04:19 pm

Musgrave Minerals Ltd (ASX: MGV) ('Musgrave' or 'the Company') is pleased to announce that reverse circulation (RC) drilling has commenced at Lena on the Company's flagship Cue Project in Western Australia's Murchison district.

The Lena deposit has an existing JORC 2012 resource of 2,682kT @ 1.77g/t Au for 153koz Au estimated at Lena Main to a maximum vertical depth of 160m.

The Lena deposit consists of a number of gold lodes, with some having significant high-grade potential at depth. Interpretation of historical drill data has identified a high-grade southerly plunging shoot on the main lode that remains open at depth below the current JORC resource. A number of historical high-grade diamond core intercepts lie within this interpreted extension of the high-grade gold lode including: 3.1m @ 16.9g/t Au from 304.5m down hole (MGDD1) including; 1.0m @ 46.5g/t Au from 304.5m, 6.2m @ 18.6g/t Au from 372.2m down hole (MGDD2), 6.0m @ 31.1g/t Au from 354.8m (MGDD3) including; 0.6m @ 206.0g/t Au from 358.9m, 3.0m @ 25.2g/t Au from 364.9m (MGDD9), 4.3m @ 14.1g/t Au from 367.9m down hole (MGDD12), 2.0m @ 82.0g/t Au from 220.0m down hole (MGDD21)

The majority of this historical drilling was undertaken by Perilya in the 1990's. The current program will consist of a combination of RC (pre-collars) and diamond drilling to better define and infill this high-grade gold shoot below the existing resource. The aim of the program is to improve the geological confidence in the continuity of the mineralisation by reducing the drill spacing to enable an upgrade of the Lena resource estimate.

Musgrave Managing Director Rob Waugh said 'Reinterpreting the geological data from historical drilling has indicated the possibility of significant upside gold potential beneath the existing resource at Lena. The reinterpretation of the existing geology and shoot control has highlighted the potential to extend the current resource at depth.'

'The structure hosting the Lena deposit is a significant shear zone with a broad alteration halo. We believe there is significant potential to grow the high-grade component by focusing the deeper drilling on these high-grade shoots'

'Assessment of the Lena resource area is ongoing with a focus on extending the highgrade lodes below the current resource. The drilling at Lena is being undertaken concurrently with planning our next steps at Lake Austin North, where there is significant evidence of a large gold system.'

Ongoing Exploration at Mainland and Lake Austin North

The RC drilling program at Mainland has been completed with 11 RC drill holes for 1,373m testing three target areas. Assay results from Mainland are expected mid-August.

At Lake Austin North, the survey results from the recent regional airborne magnetic survey are being integrated with the geological and assay data from drilling and a detailed structural analysis to prioritise targets for the next phase of drilling. There is significant evidence of a large gold system at Lake Austin North and this analysis will allow a focused approach to the next phase of drilling.

At Lake Austin a $150,000 2019-20, Government Co-funded Drilling Grant will partially fund the next phase of drilling that is scheduled to commence in Q4 this year.

Development studies on the Break of Day and Lena gold deposits to evaluate options to optimise cash flow and maximise shareholder returns are ongoing.

THE CUE PROJECT

The Cue Project ('the Project') is located in the Murchison district of Western Australia, with key tenure wholly owned by Musgrave. The Company has defined a +28km-long prospective gold corridor that hosts the Break of Day and Lena gold resources and the new Lake Austin North gold discovery.

The Company believes there is significant potential to extend existing mineralisation and discover new gold deposits within the Project area, as demonstrated by the recent drilling success at Break of Day, Lena and Lake Austin North. Musgrave's intent is to investigate options to best develop a low-cost operation, capable of delivering strong financial returns for its shareholders. Gold deposits commonly form in camps and exploration is continuing on multiple targets with the aim to define sufficient resources to enable a profitable stand-alone gold operation.

Contact:

Rob Waugh

Tel: +61 8 9324 1061

About Musgrave Minerals

Musgrave Minerals Limited is an active Australian gold and base metals explorer. The Cue Project in the Murchison region of Western Australia is an advanced gold and copper project. Musgrave has had significant exploration success at Cue with the ongoing focus on increasing the gold and copper resources through discovery and extensional drilling to underpin studies that will demonstrate a viable path to development in the near term. Musgrave also holds a large exploration tenement package in the NiCu-Co prospective Musgrave Province in South Australia.

(C) 2019 Electronic News Publishing, source ENP Newswire

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