Musgrave Minerals Share Price Rebounds Thanks to More Gold
After a turbulent past week, Musgrave Minerals Ltd’s [ASX:MGV] share price has rebounded on news of its latest results from the Cue Gold Project.
Fresh results from its latest round of drilling has revealed some very high-grade gold intercepts close to the surface.
It appeared investors were disappointed last week when the explorer announced the discovery of the White Light gold lode 75m south of the Starlight lode.
The reaction to this morning’s announcement is more positive.
At time of writing the MGV share price is up 8.33%, or four cents, to trade at 52 cents per share.
The development of the Break of Day deposit is working towards a promising gold resource.
This is particularly true at the Starlight gold lode.
Early last month MGV delivered some very high-grade gold intercepts, which sent the share price soaring.
Though the share price hasn’t climbed as high today, the results are still promising.
Highlights from the latest eight drilling holes completed at the MGV project include:
- 85m at 11.6 grams of gold per tonne (g/t) from 7m including; 8m at 99.0 g/t from 7m including; 3m at 254.2 g/t from 8m
- 68m at 5.9 g/t from 21m
- 9m at 10.7g/t from 52m
- 6m at 32.3 g/t from 61m
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The cross-section below helps to visualise the resource development:
Source: Musgrave Minerals
Starlight remains open to the southeast and down dip where drilling is continuing, according to MGV.
The explorer also said that all intercepts reported in the current drilling program are outside the existing Break of Day resource estimate.
Break of Day is already thought to host a resource of 199,000 ounces of gold.
With a resource update expected late in the third quarter of this year, we could see Break of Day get an upgrade.
Drilling at Starlight is now 75% complete, with the last few results expected in the coming weeks.
Diamond drilling to test the depth of Starlight will produce results in the next three to four weeks.
Additional drilling on the disappointing White Light lode will commence next week.
Musgrave Minerals shows promise
The development of MGV’s resource over the past few weeks shows good potential.
MGV’s investors have reaped the rewards, with the MGV share price returning 640% over the past 12 months.
If we continue to see similar results (or better) like today’s, the share price could push higher.
A higher gold price would certainly be a major driving force as well.
If you want to learn about the five factors that could play a significant role in pushing the gold price higher in 2020, you can learn about that in a detailed report right here.
For The Daily Reckoning Australia