Musgrave Minerals Share Price Up on First Gold Extension of 2021
The share price of Musgrave Minerals Ltd [ASX:MGV] has received a slight bump today thanks to its first gold extension of the year.
The rise of MGV’s share price last year was due to its frequent release of drilling results as it aggressively explored its flagship Cue Gold Project in WA.
MGV shares are looking like they have begun to bottom out, finding a new floor around the 36-cent mark.
With the announcement of another shallow, high-grade find at their tenements, the MGV share price is up 1.33% to trade at 38 cents per share.
Break of Day continues to grow
MGV today announced further strong assay results from regional drilling across numerous targets at its Cue Gold Project.
Further strong, near-surface gold hits were received across a number of targets near the Break of Day deposit with Target 5 being the highlight.
Results from Target 5 include:
- 6m at 10.62 grams of gold per tonne (g/t) from 30m
- 6m at 5.23g/t from 24m, within a broader interval of 18m at 1.97g/t from 24m
- 6m at 4.56g/t from 36m
Source: Musgrave Minerals
Further near-surface gold intersections were also recorded at Target 14 and Target 20, including:
- 2m at 7.30g/t from 73m (Target 14)
- 7m at 1.39g/t from 51m (Target 14)
- 12m at 1.36g/t from 18m (Target 20)
- 6m at 1.02g/t from 36m (Target 20)
Mineralisation at Target 5 is interpreted as two almost parallel zones, over a strike extent of more than 120 metres and remains open.
Drilling at Target 20 extended the near-surface gold along strike for 140 metres where it remains open both north for 500 metres and south for 1.5 kilometres.
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Source: Musgrave Minerals
So, some decent results out of MGV today. Although, the action in the share price doesn’t elicit a sense of excitement around the news.
What’s 2021 looking like for 2021?
Today’s share price action shouldn’t be too much of a concern, in my opinion.
MGV hit some nice gold intervals, which will make for strong targets in further drilling scheduled for next month.
With the current information we have at Target 5 and 20, it is difficult to gauge just how extensive the gold mineralisation is and how it will factor into the prefeasibility studies.
Which is why there may have only been a slight bump in the share price today.
MGV say as well as drilling on high-priority targets 5, 9, 14, 15, 17, 20 and 21 next month, drilling at the White Heat target has commenced to follow-up previous high-grade results.
Drilling of new structural and geological targets at Cue is currently being planned and will commence late in Q1.
Along with prefeasibility studies at Break of Day and Lena being planned and quotes assessed for commencement of development studies in February.
So, 2021 looks somewhat similar to 2020 in that we can expect to see plenty of activity out of MGV’s project.
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