Musgrave Minerals intersects high-grade gold during diamond campaign at Lake Austin gold target

Musgrave Minerals Ltd (ASX:MGV) has intersected high-grade basement gold mineralisation during diamond drilling at West Island target of the Lake Austin joint venture with Evolution Mining Ltd (ASX:EVN) in Western Australia’s Murchison district.

The precious metals explorer executed the drilling campaign over the Lake Austin portion of the Cue Project, which Musgrave is actively exploring alongside JV partner Evolution.

During the program, Musgrave uncovered a new, high-grade basement gold zone, spanning 400 metres of strike and remaining open to the north, south and at depth.

The ASX-lister intersected up to 11.5 metres at 3.2 g/t gold from 245 metres, including 3 metres at 10.6 g/t from 247.5 metres during the maiden diamond campaign over Lake Austin.

To follow up on the initial results and West Island’s potential, Evolution has committed a further $5 million to exploration across the JV ground over the next 12 months.

“A great early result”

Musgrave managing director Rob Waugh said: “This is a great early result from diamond drilling and a strong endorsement of the joint venture program on Lake Austin.

“We are looking forward to the re-commencement of diamond drilling in July to further test the extent and grade of the gold system at West Island.

“Evolution’s ongoing commitment is a strong affirmation of the upside potential of the project”.

A promising diamond campaign

After two regional aircore phases, comprising 436 holes for 48,895 metres, ran their course at Lake Austin, Musgrave decided to undertake a focused, seven-hole diamond drilling program.

The campaign was completed in May 2021 and covered 2,720 metres of ground, testing two regional gold targets.

Promisingly, the first four holes drilled at the West Island target intersected significant gold mineralisation while testing a 7-kilometre-long aircore anomaly.

Other highlights from the program include:

• 11 metres at 3.6 g/t from 272 metres, including 5 metres at 5.5 g/t from 276 metres;
• 5 metres at 2.7 g/t from 169 metres; and
• 0.4 metres at 23.5 g/t from 144.7 metres.

Diamond drill intercepts at the West Island gold target.

The mineralisation uncovered at West Lake is hosted within a differentiated dolerite unit, similar to that hosting the high-grade Great Fingall and Golden Crown deposits 25 kilometres to the north of West Island at Cue.

Both deposits host a combined 4.4 million tonnes of resource, grading 14.1 g/t gold for two million contained ounces.

Meanwhile, in other target areas, many of the current aircore drill holes from the regional program also terminated in anomalous gold, highlighting the possible proximity to basement gold mineralisation and the necessity for further basement drill testing.

Further investment into exploration

With the gold potential at West Lake and the broader Lake Austin region becoming increasingly clear, Musgrave JV partner Evolution is prepared to fund additional exploration.

The fellow ASX-lister will provide a further $5 million in capital over FY22 to fund more than 7,000 metres of additional diamond drilling at West Island and other basement targets.

The equity will also support a further 25,000 metres of aircore drilling to define new targets utilising knowledge developed from the work to date.

Moving forward, follow-up diamond drilling on Lake Austin is scheduled to re-commence next month, while another aircore drilling phase will kick off in late July to define additional targets for basement diamond drill testing.

Story by ProactiveInvestors