Musgrave Minerals (ASX: MGV) has found the link joining two main gold lodes at its wholly-owned Break of Day deposit within its Cue project.
The company carried out a six-hole for 786m drilling program at the deposit and uncovered numerous thick high-grade intersections.
Drill hole 19MORC037 comprised 45m at 11.8 grams per tonne gold from 144m, including 4m at 29.2g/t gold from 150m, and 23m at 16.2g/t gold from 166m.
To the south of Break of Day, a further hole unearthed 6m at 5.6g/t gold from 126m.
“Drill hole 19MORC037 was drilled to test a new hypothesis and structural interpretation and is a fantastic high-grade result for Break of Day on intersecting a potential new link lode,” Musgrave managing director Rob Waugh said.
“This result opens numerous possibilities and opportunities to discover additional lodes and grow the Break of Day resource,” he added.
The link lode is between Twilight and Velvet gold lodes and remains open along strike and at depth where it is expected to intersect the Velvet lode.
Musgrave is planning follow up drilling which will kick off in the next quarter, with a resource upgrade scheduled before the end of June.
The current Break of Day resource sits at 868,000 tonnes grading 7.15g/t gold for 199,000 ounces.
Evolution Mining joint venture
Musgrave has pointed out the Break of Day area is excluded from the joint venture with Evolution Mining which was executed in September and is focused on the Lake Austin area of the project.
Evolution can secure a 75% in Cue by sole funding $18 million on exploring the project over five years.
As part of the deal, Evolution also subscribed for $1.5 million worth of Musgrave shares, giving Musgrave some cash to drill Break of Day, Lena and Mainland.
Assays from Musgrave’s extensional drilling at Lena are due mid-month – along with results from the remaining drill hole at Mainland.
Today’s link discovery news spurred Musgrave’s share price up more than 12.5% by mid-afternoon to trade at $0.09.