Musgrave Minerals Finds Gold Near Surface, Share Price Up (ASX:MGV)

Musgrave Minerals Finds Gold Near Surface, Share Price Up (ASX:MGV)

Musgrave Minerals Ltd [ASX:MGV] shares are up 61.33% today. At the time of writing, the MGV share price is trading at 24 cents after a trading halt, up from 15 cents on Friday.

Musgrave Minerals is an Australian gold and base metals exploration company. Their main focus is the Cue Project in the Murchison region in Western Australia. Musgrave Minerals holds 100% interest in Cue, which is an advanced gold and copper project. The project holds total mineral resources of 6.45 million tonnes at 3.0 g/t gold for 613,000 ounces.

What happened with Musgrave Minerals today?

The company released their drilling results for the first 12 reverse circulation (RC) holes today from their drilling program at Starlight gold discovery at the Break of Day deposit, which is at Cue Gold Project.

Results included: 12m at 112.9 grams per tonne of gold from 36m including 6m at 143 g/t Au from 42m. Other results were 48m at 4.4 g/t Au from 30m including 4m at 41.8 g/t Au from 30m and 2m at 13.5 g/t Au from 76m. Also, 7m at 13.7g/t Au from 114m including 4m at 22.9 g/t Au from 116m and 6m at 5.7g/t Au from 81m.

The company confirmed that Starlight link-Iode mineralisation extends over a strike length of more than 115m.

The company’s Managing Director Rob Waugh said:

This is a great start to the program and confirms the current model extending the mineralisation both up dip where it approaches the surface and down dip where it remains open. The bonanza high-grade, near surface mineralisation will enhance the open cut development potential of the deposit while the deeper mineralisation will enhance the underground potential.

What’s next?

The initial RC drilling program at Break of Day which includes over 36 holes is now 60% complete.

Year to date, Musgrave Minerals shares have gained over 165%.

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Selva Freigedo,
For The Daily Reckoning Australia