Musgrave Minerals Ltd (ASX:MGV) is focused on gold and base metal exploration in Australia, developing its flagship Cue Gold Project in WA and its silver-lead-zinc Corunna joint venture project in SA.
Drilling at Cue is continuing to define the scope of the new Lake Austin North gold discovery and has potential to make additional discoveries and extend mineralisation at the Break of Day and Lena prospects.
The company is also advancing development studies at Break of Day and Lena to evaluate options for cash flow optimisation and to maximise shareholder returns.
A share placement of nearly 60 million shares was made during the quarter, raising $5.5 million to advance drilling at Lake Austin.
During the quarter Musgrave completed a seven hole 1,950-metre diamond drilling program at Lake Austin North, confirming and extending the discovery’s thick, high-grade basement gold mineralisation.
The drilling included a substantial intersection of 242 metres at 1 g/t gold from 61 metres.
Speaking to Proactive Investors last month, Musgrave managing director Rob Waugh said the company had seen thick mineralisation at the project, lots of alteration and “some really good signs”.
He added: “We want to focus our work on the Lake going forward and that’s where we think there is potential for these multi-million-ounce type deposits, the really big ones.
“That will be our focus for exploration over the next 6-12 months.”
Lake Austin North is about 3 kilometres north of Break of Day and Lena and sits within a 28-kilometre-long prospective corridor called A-zone that also hosts the Break of Day and Lena gold resources.
Break of Day contains 868,000 tonnes at 7.15 g/t for 199,000 ounces of gold and Lena has 2.682 million tonnes at 1.77 g/t for 153,000 ounces.
Total project resources at Cue are 4.83 million tonnes at 2.84 g/t for 441,000 ounces of gold.
The southern area of Cue hosts most of this resource, with a combined JORC 2012 and 2014-compliant resource of 3.87 million tonnes at 3.07 g/t containing 382,000 ounces across four deposits.
Cue's project location
Mineralisation at Lake Austin North has substantial strike potential and is open to the south, north and down-dip.
The A-zone is on a highly-prospective tonalite-mafic contact and is a new gold discovery with early results, suggesting a significant gold system.
Musgrave believes the basement mineralisation is extensive and the limits are yet to be defined below a large 800-metre-long regolith gold halo.
The basement mineralisation is now defined over more than 350 metres of strike and was intersected in the northern-most and southern-most basement holes at A-zone.
A new diamond drilling program has begun to further extend the strike extent of A-zone’s mineralisation and to better define the depth potential of the system.
This program will consist a minimum of 15 holes for about 4,000 metres and will continue until April.
While progressing Cue’s main prospects, the company also advanced regional exploration during the quarter, completing an 82-hole aircore program to test gold and base metal targets on the northern Cue tenements.
These targets included the Laterite Hill and Lady Stardust gold targets and the Hollandaire North and Mt Eelya West base metal targets.
Drilling is also being undertaken at Vostock, 2 kilometres east of the Westgold Resources Ltd (ASX:WGX) Comet mine, to test an induced polarisation and soil geochemical anomaly.
Negotiations with Westgold regarding a mining and processing profit sharing agreement over Cue’s existing resources is ongoing.
The proposed arrangement does not include Lake Austin North or new targets.
Situated in the Gawler Craton region in South Australia, Musgrave’s Corunna joint venture project was drill tested during the quarter for prospective silver-lead-zinc targets.
Petratherm can earn up to 75% in the Corunna project through staged expenditure of $1 million over 2.5 years.
Best results included: 12 metres at 20 g/t silver, 0.8% lead and 0.2% zinc from 20 metres; 20 metres at 12 g/t silver, 0.3% lead and 0.2% zinc from 12 metres; and 12 metres at 9 g/t silver, 0.5% lead and 0.3% zinc from 20 metres.