Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF)’s Cue Gold Project joint venture (JV) partner Evolution Mining Ltd (ASX:EVN) has defined a maiden mineral resource estimate (MRE) for the West Island prospect in Western Australia’s Murchison district, further unlocking the value of the project.
The JV partners have delineated 1.7 million tonnes of material in the inferred category, grading 2.6 g/t gold for a total of 142,000 ounces at a cut-off grade above 0.73 g/t gold.
A total of 251 drill holes for 41,428 metres were used for the West Island MRE, comprising 16,820 samples from drilling completed between 2019 and 2022. Of the samples, 21% were from aircore and the remaining from diamond core.
The MRE was developed using a gold price of $2,500 per ounce, which is considered to be economic after taking into account the proposed mining technique and assumed metallurgical recovery of 92%.
Evolution is the operator and manager of the West Island deposit.
The West Island MRE as of June 30.
About the Cue JV
Musgrave and Evolution entered into an earn-in exploration joint venture agreement in October 2019.
Evolution completed the A$18 million earn-in requirement to earn a 75% ownership interest in the project and the joint venture was formed on December 16 last year.
The company spent the first year completing aircore drilling of the prospective geological corridor, extending north of Musgrave’s Lena and Break of Day mineral resources within the Cue project.
The work had outlined a 7-kilometre-long gold geochemical anomaly, with diamond drilling rapidly vectoring to the West Island target.
Deeper drilling has identified multiple high-grade gold lodes, which will be explored in the future for resource growth.
Map showing Cue's location, geology and gold deposits.
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