The Musgrave Minerals Ltd (ASX: MGV) share price is moving on up after the company announced "thick gold intersections" at its flagship mine in Western Australia.
Shares in the gold miner touched an intraday high of 38.5 cents today before losing ground late this afternoon. At the time of writing, the Musgrave share price is trading at 37.5 cents, up 4.17%.
Let's take a closer look at today's news.
Strong assay results
In a statement to the ASX, Musgrave Minerals advised it has strong assay results from the Big Sky Prospect at its Cue Gold Project in WA.
The company described the results as "thick gold mineralisation", saying highlights from initial drilling include:
- an 84m wide ore containing 1.4g of gold per tonne
- a 42m wide ore containing 1.1g of gold per tonne
- a 36m wide ore containing 1.2g of gold per tonne, and
- a 12m wide ore containing 1.7g of gold per tonne.
The results indicated "the potential for a large well-mineralised gold system with discrete zones of high-grade mineralisation…" the company said.
Investors, it seems, are digging today's news, judging by the rise in the Musgrave share price.
Management commentary
Musgrave managing director Rob Waugh, said
The [reverse circulation] drilling has confirmed the potential for significant gold mineralisation at Big Sky and the possibility of a number of higher-grade zones within the broader anomalous trend.
The near surface nature of the oxide, regolith gold mineralisation is expected to be favourable for open-cut mining. Regional drilling will continue with the aim of defining discrete higher-grade zones for resource definition.
Gold commodity prices
Gold is currently trading at around US$1,800 per troy ounce. It is down 4.48% this week and 5.84% year-to-date. According to the website, Trading Economics, investor worries over inflation have subsided, and as such, the price of gold has fallen in recent weeks.
Gold is traditionally seen as a safe-haven asset against inflation.
Musgrave share price snapshot
The Musgrave share price has fallen 13.6% over the past 12 months. After rising a whopping 175% in the 52-weeks to April 2021, Musgrave shares have been on decline since then.
Musgrave Minerals has a market capitalisation of around $200 million.
