The Musgrave Minerals Ltd (ASX: MGV) share price is starting the trading week off with a bang after the small-cap ASX miner revealed bonanza grades in near surface drilling.
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.
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).
Why the Musgrave Minerals share price is surging
This morning, Musgrave reported assay results for a further 7 reverse circulation (RC) drill holes from the current program at the new Starlight gold discovery.
This follows the announcement of assay results for the first 12 RC drill holes last week which sent the Musgrave share price flying.
Significant intercepts from today's announcement include:
- 42 metres at 77.3 g/t gold from 30 metres, including:
- 18 metres at 179.4 g/t gold from 30 metres
- 61 metres at 12.7 g/t gold from 76 metres, including:
- 6 metres at 44.6 g/t gold from 76 metres
- 21 metres at 23.6 g/t gold from 106 metres
- 22 metres at 21.0 g/t gold 2 metres, including:
- 9 metres at 49.2 g/t gold from 8 metres
- 9 metres at 16.5 g/t gold from 225 metres, including:
- 3 metres 47.6 g/t gold from 225 metres
- 4 metres at 48.2 g/t gold from 85 metres
- 2 metres at 37.7 g/t gold from 74 metres
The Starlight link-lode is located at the Break of Day deposit within the Cue Gold Project. The intersections in all drill holes sit outside, but in close proximity to, the current resource at Break of Day.
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:
"These are amazing gold grades to see in near surface drilling. Our deepest holes to date are still in high-grade mineralisation at 200 vertical metres where Starlight remains open down dip. The bonanza grades near surface will have a significant positive impact on future development at Break of Day."
The current reverse circulation drilling program at Break of Day is now approximately 80% complete and consists of more than 36 holes for around 7,000 metres.
Assays have been received for 19 holes to date, with further assays expected within 2 weeks.
In addition, a diamond drilling program at Starlight to test depth extensions to the Starlight mineralisation is due to commence this week.
After flying 45.83% at the open, the Musgrave Minerals share price is currently sitting 39.58% higher at 33.5 cents per share. This takes its market capitalisation at the time of writing to around $155 million.
