Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) has further validated the Cue Gold Project’s high-grade endowment through further bonanza-grade results from reverse circulation (RC) grade control drilling at the Break of Day and White Heat deposits.
Best results from the Twilight and Velvet lodes at Break of Day are 18 metres at 71 g/t gold from 7 metres, including 2 metres at 624 g/t from 14 metres in hole 23MORC318 and 10 metres at 64 g/t from 4 metres, including 2 metres at 226.7 g/t from 9 metres in 23MORC351.
White Heat returned up to 3 metres at 78.0 g/t gold from 12 metres, including 1-metre at 1,122 g/t from 12 metres in hole 23MORC225 and 10 metres at 34.4 g/t from 24 metres, including 1-metre at 267.5 g/t from 24 metres in 23MORC229.
The drilling was carried out to de-risk the project’s execution phase of development and will enable future mining studies to be delivered with greater certainty.
Near-surface endowment
Musgrave managing director Rob Waugh said: “This is another strong set of drill results which continue to support the previously reported high-grade, near-surface endowment of the Cue Gold Project.
"Following the strong financial metrics of the Stage 1 Prefeasibility Study in April 2023, and prior to the takeover, the company was focused on grade control drilling to de-risk the initial stages of open pit development.”
Ramelius reaches 82.74%
On July 3, 2023, Ramelius Resources Ltd announced an off-market takeover offer for all the ordinary shares in Musgrave and the company's directors continue to unanimously recommend that shareholders accept this offer, in the absence of a superior proposal.
On August 28, 2023, Ramelius announced the offer as unconditional and as of the close of trading yesterday, Ramelius controlled 82.74% of Musgrave shares.
Strong results
The latest results from the final batch of the drilling that began in May 2023 are inside the Stage 1 PFS open pit designs and are broadly aligned with previous data.
Other strong Break of Day results are:
- 17 metres at 16.3 g/t gold from 12 metres in hole 23MORC343 including 1-metre at 250.8 g/t from 18 metres;
- 4 metres at 44.3 g/t from 42 metres in 23MORC356 including 1-metre at 155.5 g/t from 42 metres;
- 10 metres at 12.2 g/t from 31 metres in 23MORC355; and
- 8 metres at 15.5 g/t from 25 metres in 23MORC354.
- 7 metres at 52.8 g/t gold from 20 metres in hole 23MORC233 including 1-metre at 296.2 g/t from 21 metres; and
- 6 metres at 31.7 g/t from 20 metres in 23MORC292.
Increased confidence
This grade control drilling will provide increased confidence in the resource, enable a future resource update and de-risk the development of the project.
This is the final part of a larger grade control program with Starlight lode results, at the Break of Day deposit, previously reported.
“These infill grade control drilling results provide added certainty in forecasting and scheduling of future gold production,” Waugh added.
“The broad pool of results support and are aligned with previous data and continue to highlight the very high-grade, near-surface nature of the gold system at Cue.”
About Cue
Cue Gold Project is about 30 kilometres south of the township of Cue and 40 kilometres north of Mt Magnet in the Murchison district of Western Australia.
The Break of Day and White Heat deposits are only 5 kilometres from the Great Northern Highway, around 600 kilometres north of Perth on tenure wholly owned by Musgrave.
The current resource estimate for the Cue project totals 12.3 million tonnes at 2.3 g/t gold for 927,000 ounces.