The share price of Musgrave Minerals (ASX: MGV) was up 1.47% at the close following revelations that the active gold explorer identified a new mineralised trend 400m at the Cue project in WA.
The discovery relates to a new high-grade called the ‘Waratah’ trend, which extends for over 4km of strike, with gold mineralisation identified in at least three separate zones that are individually between 200m and 400m of strike.
The company’s significant intersections include two metres at 28.1 g/t gold from 78 metres and one metre at 53.2 g/t gold from the same 78 metres.
It’s understood twenty-seven reverse circulation (RC) drill holes were drilled to test this new corridor, with mineralisation remaining open down plunge and also open to the south.
Commenting on the discovery, managing director Rob Waugh noted the new Waratah zone is only 400m east of Break of Day, one of the highest-grade near-surface, undeveloped gold deposits in Australia hosting 797,000 tonnes at 10.2g/t for 262,000 ounces of contained gold.
Break of Day is part of the Cue project which hosts 6.4m tonnes at 3.2g/t for 659,000 ounces of contained gold.
“Interestingly, Waratah was a lower priority target which coincided with the proposed waste and tailings storage facility locations in the early PFS design works,” Waugh said.
Meantime, Waugh also noted that further strong results from follow up RC drilling at the nearby Amarillo prospect, support the upside prospectivity of the Cue project.
Formerly known as Target 14 and located 1.2km southwest of Break of Day, the project delivered notable intercepts of 9m at 8.7g/t from 44m, including 2m at 35.1g/t from 51m, and 3m at 11.3g/t from 45m.
Today’s announcements follow revelations 15 December that Musgrave had intersected additional near-surface, high-grade gold at the Big Sky prospect.
A resource estimate is expected to be released late in the second quarter of 2022, following further drilling which is expected resume at Big Sky soon.
Results are also due early February for a follow up program of reverse circulation drilling at the new high-grade zone south of White Heat.
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