The Musgrave Minerals Ltd (ASX: MGV) share price has charged out of a trading halt this morning on the back of drilling results at its flagship Cue Project.
Musgrave Minerals is an active Australian gold and base metals explorer. Its cornerstone project is the Cue Gold Project in the Murchison Province of Western Australia. The company also has a big footprint in the Musgrave Province, one of the least explored exploration frontiers in the country.
At the end of FY19, Westgold Resources Ltd (ASX: WGX) was Musgrave Minerals' largest shareholder, owning 16.78% of shares. Musgrave's shareholder base also comprises other big ASX names like Evolution Mining Ltd (ASX: EVN) and IGO Ltd (ASX: IGO).
Why the Musgrave Minerals share price is spiking
This morning, Musgrave reported assay results for the first 12 reverse circulation (RC) drill holes from the current program at the new Starlight gold discovery. The Starlight link-lode is located at the Break of Day deposit within the Cue Gold Project.
For a bit of background, the Cue Gold Project hosts total resources of 6.45 million tonnes at 3.0 grams per tonne (g/t) gold for 613,000 ounces. This includes the Break of Day deposit (868,000 tonnes at 7.2 g/t gold for 199,000 ounces of contained gold) and the Lena deposit (4.3 million tonnes at 2.3 g/t gold for 325,000 ounces of contained gold).
Significant intercepts announced this morning from the initial RC drill holes at Starlight include:
- 12 metres at 112.9 g/t gold from 36 metres;
- 48 metres at 4.4 g/t gold from 30 metres;
- 7 metres at 13.7 g/t gold 114 metres;
- 6 metres at 5.7 g/t gold from 81 metres; and
- 6 metres at 5.2 g/t gold from 176 metres.
The drilling is focused on infilling and extending the new high-grade lode where mineralisation has been intersected over a strike of more than 115 metres.
Commenting on the results, 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."
The current RC drilling program at Break of Day is approximately 60% complete and consists of more than 36 holes for around 7,000 metres.
After flying as much as 93.33% higher in early trade, the Musgrave Minerals share price is currently sitting 53.33% higher for the day at 23 cents per share. This takes its market capitalisation at the time of writing to around $106 million.
