Musgrave Minerals higher on doubling Big Sky gold strike length to more than 2.6 kilometres

Musgrave Minerals Ltd (ASX:MGV) (OTCMKTS:MGVMF) (FRA:6MU) is higher after receiving further strong results from regional aircore drilling at Big Sky prospect along a new gold corridor southwest of Lena at the flagship Cue Gold Project in Western Australia.

The aircore (AC) drilling has further extended the regolith gold mineralisation with the strike length doubled to more than 2.6 kilometres and this remains open to the north, south and down dip.

Shares have been as much as 12% higher intra-day to A$0.38 cents.

New intersections include:

• 18 metres at 1.33 g/t gold from 36 metres;
• 42 metres at 0.46 g/t from 12 metres to end of hole (EOH), including 6 metres at 2.52 g/t from 48 metres to EOH;
• 12 metres at 0.97 g/t from 48 metres;
• 24 metres at 1.29 g/t from 78 metres to EOH, including 6 metres at 3.80 g/t from 84 metres;
• 6 metres at 0.87 g/t from 30 metres; and
• 45 metres at 1.05 g/t from 42 metres.

Potential for ”significant mineralised system”

Follow-up basement drilling has commenced with 26 RC holes completed to date and assay results pending.

Musgrave managing director Rob Waugh said: “The aircore drilling has continued to extend the strong continuous regolith gold mineralisation along the new gold corridor south-west of Lena at Big Sky.

“This new system is masked from surface by a thin veneer (1-4 metres) of transported cover.

“The grade, extent and strong continuity of the Big Sky regolith mineralisation indicates the potential to host a significant mineralised system.”

Waugh said that a large follow-up, 10,000-metre RC drill program had commenced.

Growing existing resource base

Big Sky Prospect is around 3.5 kilometres south of the Break of Day deposit and the mineralisation remains open to the north and south with the potential for two parallel zones of basement gold mineralisation.

The extensive nature and continuity of the gold mineralisation support the view that Big Sky has the potential to add to the company’s existing resource base at Cue of 6.4 million tonnes at 3.2 g/t gold for 659,000 ounces.

Plan showing Big Sky Prospect, drill hole collars and new assay results with respect to the newly identified gold corridor.

This includes the Break of Day deposit with 797,000 tonnes at 10.2 g/t gold for 262,000 ounces and the Lena deposit with 4.3 million tonnes at 2.3 g/t gold for 325,000 ounces.

If the RC drilling is successful, this will be followed by resource definition drilling.

Ongoing activities

At the company’s 100% owned tenements the following work is ongoing:

• 1-metre resamples from 6-metre composites samples of around 40 regional aircore drill holes from Big Sky and Target 14 are expected in June;
• Further RC drilling at the White Heat and Numbers prospects is continuing with assays results expected late May;
• Follow-up RC drilling to define the basement source of gold anomalism at the new Big Sky target has commenced with 26 holes completed to date – first assay results are expected early June;
• Follow-up RC drilling to define the basement source of gold anomalism at Target 14 has also commenced with first assays results expected in June; and
• Works to progress the pre-feasibility study at Break of Day and Lena are continuing with additional diamond drilling for metallurgical testing underway.

Additionally, at the Evolution JV the seven-hole, diamond drilling program to follow-up the extensive regolith gold anomalies identified in the regional aircore drilling program on Lake Austin has now been completed with assay results expected in June.

Story by ProactiveInvestors