Musgrave Minerals (ASX: MGV) confirms drilling at the Break of Day target within its flagship Cue project in WA continues to deliver strong gold intercepts including a bonanza hit grading 884.7 grams per tonne gold.
Assays from five reverse circulation holes at the new Starlight lode at Break of Day have demonstrated the high-grade nature of the discovery, with a best result of 14m at 191.1g/t gold from 4m, including 3m at 884.7g/t from 5m, and 1m at 2,518.8g/t from 6m.
Diamond drilling continues to test the depth extent of Starlight below 250m and has returned intercepts of 16m at 13.7g/t gold from 18m, including 4m at 40.8g/t from 18m, and 9m at 6.1g/t from 25m; and 0.5m at 25.4g/t gold from 269.5m.
All of the intercepts are outside of the existing resource estimate for Break of Day, which has been reported as 868,000t at 7.2g/t gold for 199,000oz contained gold.
The resource sits within a current indicated and inferred resource for the Cue project of 6.45Mt at 3.0g/t gold for 613,000oz.
The associated Lena deposit, located 130m to the west, has a resource estimate of 4.3Mt at 2.3g/t gold for 325,000oz.
The Starlight and White Light gold lodes lie proximal to Break of Day within separate south-east to north-west parallel mineralised zones approximately 75m apart, and are being explored for their potential to grow the resource.
Both lodes have a strike extent of over 100m and are open to the south-east and down plunge.
White Light’s best results from this round of drilling are 3.8m at 40.5g/t gold from 100.2m, including 0.75m at 203.3g/t from 100.2m; and 1m at 22.6g/t gold from 115m.
Managing director Rob Waugh said the latest assays confirm the potential of mineralisation at Starlight, which Musgrave discovered in June.
“[This lode] continues to produce stunning gold results in near-surface drilling [and] further RC drilling is underway to infill and extend the mineralisation with the aim of completing a resource update this year,” he said.
“Diamond drilling is also continuing to test for depth extensions of Starlight below 250 vertical metres and to further define White Light.”
Drilling will also test for new lodes within the Break of Day-Lena mineralised corridor with a third drill rig due onsite in mid-August.
The Cue project is located in WA’s Murchison district and has been defined by a 28km-long prospective gold corridor which includes the Break of Day-Starlight, Lake Austin North and Mainland-Consols gold discoveries.
In February 2019, Musgrave entered into a joint venture with Cyprium Metals (ASX: CYM) whereby Cyprium can earn 80% interest in the non-gold rights over the northern tenure at Cue, including the Hollandaire copper deposit.
Musgrave retains all of the gold rights and a 20% free-carried interest in the non-gold rights to completion of a definitive feasibility study.
In September, Musgrave entered into a separate earn-in and exploration joint venture with Evolution Mining (ASX: EVN) over the Lake Austin portion of the project – excluding Break of Day, Starlight, Lena and Mainland.
Under the terms of that agreement, Evolution can earn 75% in the joint venture by sole funding $18 million over five years with a minimum expenditure of $4 million within the first 24 months.
If Evolution does not meet the entire expected spend, Musgrave will retain full ownership of Lake Austin.
At midday, shares in Musgrave were trading 11.59% higher at $0.77.