Musgrave Minerals’ Share Price Rises on Gold at New Target
The Musgrave Minerals Ltd [ASX:MGV] share price has made a big upwards swing thanks to hitting high-grade gold at its new target at the Cue Gold Project in WA.
The MGV share price has been in a slow decline since coming off its high in August.
Which could be blamed on the recent slide in the gold price in USD terms.
The last time we visited the MGV share price, not even an increase in resource was enough to get it moving in the right direction.
At time of writing, shares in MGV are up 6.5 cents or 12.62% to trade at 58 cents per share.
Could Starlight be looking at an extension?
MGV’s latest results come from drilling targeting a new zone just 400 metres south of the Starlight gold discovery at the Break of Day deposit.
- 5m at 13.4 grams of gold per tonne (g/t) from 28m, including 2m at 30.9g/t from 28m
- 8m at 8.4g/t from 41m, including 4m at 15.4g/t from 44m
MGV said the new zone is highly encouraging and highlights the potential for Starlight repeats along strike.
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MGV Managing Director Rob Waugh said:
‘This is a great start to the regional program. Any significant gold anomalism on these new targets is encouraging but to get these high-grades from this reconnaissance program is a very exciting result. We’re currently planning further follow-up drilling to commence in late October.’
Source: Musgrave Minerals
The results highlighted today come from Target 2, shown in the figure above, and forms part of MGV’s regional exploration program.
To date, a total of 220 holes have been completed in the regional program with assays received for 49 holes across five targets.
The program is focused on exploring the potential for high-grade gold mineralisation on structures crosscutting stratigraphy similar to that seen at Starlight.
What does this mean for the project?
MGV said that follow up drilling at Target 2 is currently being planned and is expected to commence in late October.
Further drilling to test the possible new lode 100 metres to the south of White Light is scheduled for November.
So, plenty going on.
However, the Break of Day resource update including the Starlight and White Light lodes, is scheduled for late October.
But MGV did not specify whether the latest results would tie in with this update.
In my opinion, given the geological accuracy needed for resource updates, these latest results probably won’t be.
Not to worry though.
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For The Daily Reckoning Australia