Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) has unveiled assay results described as "exceptional" from a grade control drilling program at the Starlight Lode in the Break of Day trend, in Western Australia's Murchison district.
The shallow results of up to 1-metre at 780.7 g/t gold from 29 metres and 3 metres at 676 g/t gold from 31 metres have further confirmed the deposit's high-grade potential, igniting optimism for the future of the Cue Gold Project.
High average grade
Break of Day trend, which includes the Break of Day and White Heat deposits, boasts a total mineral resource estimate (MRE) of 982,000 tonnes with an average gold grade of 10.4 g/t, amounting to 327,000 ounces of gold. A significant portion of this resource, 70%, falls into the higher confidence ‘indicated’ category.
The grade control drilling program, infilled to 7.5-metre x 7.5-metre spacing, is an essential step towards de-risking the development of the project and securing permits and approvals for future mining activities.
This infill drilling produced a raft of results with highlights of:
- 19 metres (9.5 metres estimated true width) at 112 g/t gold from 27 metres, including 3 metres (1.5 metres ETW) at 676 g/t from 31 metres;
- 28 metres (13.8 metres ETW) at 68.5 g/t from 21 metres, including 4 metres (2 metres ETW) at 410.6 g/t from 34 metres;
- 16 metres (7.9 metres ETW) at 78.5 g/t from 28 metres, including 2 metres (1 metre ETW) at 520.8 g/t from 31 metres; and
- 10 metres (5.2 metres ETW) at 102.8 g/t from 25 metres, including 1 metre (0.5 metre ETW) at 780.7 g/t from 29 metres.
Strong financial metrics
Musgrave managing director Rob Waugh said: “Following the strong financial metrics of the Stage 1 pre-feasibility study in April 2023, the company has focused on extending mine life through exploration drilling, converting inferred resources within the confines of Stage 1 PFS mining envelopes as well as grade control drilling to de-risk the initial stages of open pit development.
“Grade control drilling is aligned to this strategy. These infill grade control drilling results from the Starlight Lode at Break of Day focus on the early months of development to provide added certainty in forecasting and scheduling of future gold production.
"The results support and are aligned with previous data and continue to highlight the very high-grade, near-surface nature of the Break of Day gold system.
“Ongoing field activities are focused on further grade control drilling at Break of Day (Twilight and Velvet Lodes) and the high-grade White Heat deposit together with drill testing of new high-priority gold exploration targets at Cue.”
The company aims to extend the mine life through exploration drilling and convert inferred resources within the Stage 1 PFS mining envelopes.
Off-market takeover
Musgrave Minerals also informed investors about an off-market takeover offer by Ramelius Resources Ltd, which the Musgrave directors unanimously recommend shareholders accept in the absence of a superior proposal. This development is seen as a testament to the potential value and attractiveness of the Cue Gold Project.
Further activities planned by Musgrave Minerals include grade control drilling at White Heat, with assay results expected in mid-late August.
Additionally, the company is carrying out reverse circulation (RC) drill testing of new regional high-priority exploration targets and further soil geochemical sampling is scheduled to be completed in August over high-priority targets at Mt Magnet South.