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Musgrave Minerals Drilling and Metallurgy Right on Cue

Thursday, April 27, 2017

THE INSIDE STORY: If there were football club-style awards for junior explorers, Musgrave Minerals (ASX: MGV) would win the award for most consistent.

Musgrave Minerals has enjoyed a run of encouraging assay results from the first stage of an RC drilling campaign at the Break of Day and Lena prospects on the Cue project in the Murchison region of Western Australia.

The Cue project is a Joint Venture with Silver Lake Resources (ASX: SLR) where Musgrave holds a 60 per cent interest and has elected to increase its interest to 80 per cent.

Infill drilling at Lena aimed to extend existing mineralisation and enable Musgrave to improve the current shallow Resource and to enhance the deposit’s open cut potential.

The Lena deposit is currently defined along a 1.6 kilometre strike length with a total combined Mineral Resource of 1.273 million tonnes at 1.86 grams per tonne gold for 76,000 ounces of gold.

Recent intersections include:

3 metres at 48.6 grams per tonne gold from 80m down hole; and

8m at 6.4g/t gold from 13m down hole.

Musgrave Minerals considers the near surface high-grade gold at Lena to have potential to be mined through open cut methods.

The prospect is very close to the Break of Day prospect, which Musgrave believes could benefit the project by enriching the economics of any potential future development at Break of Day.

High-grade gold mineralisation at Break of Day occurs in vertical to steep westerly dipping, semi-parallel quartz lodes hosting gold with minor pyrite, within a dolerite-basaltic stratigraphic sequence.

The separation of the Twilight and Velvet gold lodes varies along strike from 15 to 60 metres and the gold mineralisation is currently open along strike and down plunge.

The latest assay for Break of Day returned encouraging intersections including:

1mat 117.4g/t gold from 173m down hole, extending the high-grade gold mineralisation on the Twilight Lode a further 25m south.

2m at 16.2g/t gold from 120m down hole.

14m at 14.4g/t gold from 111m down hole, extending the high-grade gold mineralisation on the Twilight Lode a further 50m down dip and showing it is still open to the south and down plunge.

Drilling is continuing to extend the limits of the mineralisation at Break of Day.

As drilling results continued, they also heightened Musgrave’s confidence of improving the grade and increasing the gold resources at Lena and Break of Day with further drilling.

Musgrave now has Stage Two of the drill program underway, which will include both extensional and infill drilling at Break of Day and Lena focusing on the high-grade southern extension of Break of Day.

“The positive drilling results at both Lena and Break of Day have provided the ideal launching pad for us to continue to extend this high-grade gold mineralisation to grow the Resource,” Musgrave Minerals managing director Rob Waugh told The Resources Roadhouse.

“We have the next phase of drilling underway, which we hope will upgrade the Lena and Break of Day Mineral Resources in June 2017 and continuing the strong drill results that we have produced to date.”

Musgrave’s expectations for the Cue project were boosted by initial metallurgical test work undertaken at the Break of Day prospect.

Three composite fresh rock samples were collected from nine representative drill holes across the strike of the gold lodes at Break of Day.

The samples represented the various gold lodes, ore types and feed grades for potential future mining and processing activities.

The test work on the samples demonstrated very rapid leaching kinetics for all three samples used producing overall recovery of between 95.7 per cent and 96.3 per cent (average 96 per cent) to produce a maximum leaching of gold after the first eight hours.

The testing also achieved high gravity recoveries of between 80.8 per cent and 86.1 per cent (average 84.2 per cent) from a single pass through a Knelson concentrator.

The gravity recoveries rate highly when compared to typical Yilgarn gold ores.

“This was an excellent result at Break of Day and will enable us to assess multiple processing options going forward,” Waugh said.

“The exceptionally high gravity recovery will enable flexible processing and potentially reduce capital and operating costs.”

Musgrave Minerals Ltd (ASX: MGV)
...The Short Story

28 Richardson Street
West Perth WA 6005

Ph: +61 8 9324 1061


Graham Ascough, Rob Waugh, Kelly Ross, John Percival