Musgrave Minerals (ASX: MGV) has unearthed a thick intersection of gold mineralisation while drilling at the Lake Austin North prospect within its flagship Cue project in Western Australia’s Murchison region.
Drilling at the prospect’s A Zone returned 94m at 2.4 grams per tonne gold from 156m to end of hole.
The thick intersections included higher-grade intervals of 52m at 4.1g/t gold, 12m at 8.8g/t gold and 6m at 6.3g/t gold.
Additionally, the intersection ended in mineralisation, with a new diamond drilling campaign underway to better-test the extent of mineralisation in this hole and other priority targets.
A high-grade shoot has now been defined at A Zone and extends 200m with mineralisation remaining open in all directions.
“Drill hole 18MORC057 has returned another thick high-grade result and delivered our best intercept to date at A Zone and the results indicate the system is open to the south as well as to the north and at depth,” Musgrave managing director Rob Waugh said.
“Lake Austin North is proving to be a large, well-mineralised system and the current diamond drilling program will aim to further outline the size and grade of this exciting new gold discovery,” Mr Waugh added.
The hole was drilled 100m south a discovery hole that revealed 36m at 3.6g/t tonne in mid-October. The discovery hole also comprised a high-grade interval of 20m at 6.1g/t gold.
Diamond drilling across the A Zone will encompass 1,500m and a minimum of seven holes. Musgrave anticipates it will take about eight weeks to complete.
Meanwhile, drilling at the C Zone within the prospect returned 30m at 0.6g/t gold including 12m at 1.3g/t gold.
Follow up aircore drilling is planned at the C Zone to identify the orientation and extent of the mineralisation.
Additionally, a gravity survey is underway over recently granted tenements next to Cue, with Musgrave saying it was progressing well.
To-date, Musgrave has firmed up 352,000 ounces of contained gold at the Break of Day and Lena deposits at Cue.
The company is carrying out development studies at the deposits in anticipation of creating a low-cost operation that can self-fund exploration at Lake Austin North and other priority targets within the project.
By midday, shares in Musgrave had surged 32% to reach $0.078.