The Musgrave Minerals Ltd (ASX: MGV) share price is ticking higher in afternoon trade as the mining company unveils a new update from its Cue Gold project.
At the time of writing, shares in the minerals company are now changing hands at 39 cents apiece, a 4% gain on the day.
Musgrave shares are on the move as the company released a key announcement regarding a prospect at its flagship Cue Gold Project in Western Australia.
Here are the major details.
What was announced?
Musgrave reported "further strong assay results" from its reverse circulation (RC) drilling program at the Big Sky prospect at the Cue Gold site.
RC drilling at the site along the "new 7km long gold corridor on [the company's] 100% owned ground" continues to intersect significant gold mineralisation around 1-6m below ground at Big Sky.
The company also advised that infill RC drilling had intersected a "bonanza" gold grade of 28m @ 35.9g/t Au from 49 metres.
Within that strike is another 1 metre @ 898g/t Au from 49 metres, with "coarse gold in quartz in RC drill chips".
Both results are supported by repeat assays and the presence of coarse visible gold, according to the announcement.
Furthermore, Musgrave also identified an additional new high-grade gold position in the footwall to Big Sky via a dolerite zone, which it says is "open and untested along strike and down dip".
For reference, dolerite, or diabase as it is also known, is a rock-type associated with non-alluvial gold mining throughout certain regions in WA.
Alongside these finds, Musgrave confirmed that resource delineation drilling is continuing at Big Sky, coupled with infill and RC drilling at additional targets along the prospect.
Aside from the data presented today, Musgrave still has assay results pending for a "large number of drill holes across the Cue project".
In addition to the Big Sky prospect, the Cue project also has additional resource estimates of 262,000 ounces at one "Break of Day Deposit" and another 325,000 ounce gold estimate at the "Lena Deposit".
What did management say?
Speaking on the announcement today, Musgrave Minerals managing director Rob Waugh said:
This is a very good result and highlights the highgrade potential at Big Sky over the broader 2.6km of strike. It is unusual on the Yilgarn to see such coarse gold in RC drill chips and the results validate our belief that there are high grade zones within the Big Sky trend.
Regarding the discovery of a dolerite discovery, Waugh added:
The identification of a new dolerite hosted zone in the footwall of Big Sky is also a positive. This could be the southern extension of the same dolerite unit identified to the north on the Evolution JV. Gold can be hosted in many different rock types on the Yilgarn but dolerites are one of the most prolific host lithologies for large deposits.
Musgrave Minerals share price snapshot
After rallying 45% in the last month, the Musgrave Mining share price has managed to step into the green and post a year to date return of 4%.
Depsite this, it lays 24% in the red over the past 12 months. That's well behind the benchmark S&P/ASX 200 Index (ASX: XJO)'s return of around 21% in that time.
