ASX RELEASE 9 November 2016
ASX: MGV
Exceptional Results Continue at Break of Day
Musgrave Minerals Ltd ("Musgrave" or "the Company") (ASX: MGV) is pleased to report further strong assay results from reverse circulation ("RC") drilling at Break of Day on the Cue Project in the Murchison region of Western Australia.
Drill hole 16MORC052 intersected 2m @ 41.5g/t Au (uncut) from 190m down hole (Figure 1) and extends the high grade gold mineralisation a further 45 metres down dip on section 13300mN (Figure 4). The intersection is interpreted to be within the Twilight Lode and is open down plunge.
Drill hole 16MORC053 intersected 3m @ 7.9g/t Au from 124m down hole in the projected position of the Twilight Lode. Drill hole 16MORC056 intersected 4m @ 6.1g/t Au from 68m down hole also in the projected position of the Twilight Lode. This intersection is shallow and opens the potential for further shallow high grade gold mineralisation to extend to the south where the mineralisation is currently open (Figure 2).
These assay results continue to enhance the geological understanding at Break of Day and increase the potential for further shallow high grade gold mineralisation to be discovered to the south of 16MORC056. The mineralisation also remains open at depth and down plunge.
A diamond and RC pre-collar drilling program is due to commence later this week at Break of Day to confirm geological interpretations and to obtain preliminary rock density data required for future resource estimation.
28 Richardson Street, West Perth WA 6005 Telephone: (61 8) 9324 1061 Fax: (61 8) 9324 1014
BREAK OF DAY
A total of 32 RC drill holes were completed for over 7,265 metres as part of the recent drill program at the Break of Day Prospect and assay results have now been received for all 32 drill holes. The most recent assay results are shown in Table 1.
The mineralisation at Break of Day is interpreted to occur in vertical to steep westerly dipping, semi-parallel quartz lodes hosting high grade gold with minor (1-2%) pyrite, within a basaltic stratigraphic sequence. The separation of the Velvet, Middle and Twilight gold lodes is varying along strike from 15 to 60 metres. The gold mineralisation is currently open along strike (Figure 1 and 2) and down plunge (Figure 2 and 3).
Sampling was undertaken on one metre intervals in visible quartz lodes and four metre composites outside these zones.
Figure 1: Surface plan of Break of Day drill hole collar locations showing projected surface trace of mineralisation and high grade intersections
Figure 2: Break of Day long section of the Twilight gold lode (a long section or longitudinal section is a section along the plane of the lode and in this instance shows gold grade x thickness variability with depth of the Twilight Lode). Due to the high variability in gold grade a zone of high grade is depicted rather than contours.
Figure 3: Break of Day long section of the Velvet gold lode
Figure 4: Break of Day cross section 13300mN - local grid (vertical section through mineralisation)
OTHER TARGETS
A surface EM survey is continuing at the Cue Project to identify basement conductors that may reflect massive copper-gold sulphide mineralisation. The ground survey will cover up to 15 separate targets identified from the airborne versatile time-domain electromagnetic ("VTEM") survey flown earlier in 2016.
ABOUT THE CUE PROJECT
The Cue Project ("The Project") is a Farm-In and Joint Venture Agreement with Silver Lake Resources Limited ("Silver Lake") (ASX: SLR) where Musgrave can earn up to an 80% interest. The Project consists of the Moyagee Gold and Hollandaire Copper Resources (see ASX announcement 25 November 2015, "Musgrave Secures Advanced Gold and Copper Project") and surrounding tenure in the highly prospective Murchison province of Western Australia (Figure 5). The Company has met its minimum expenditure commitment for the Cue Project and has commenced the Stage 1 Earn-In to acquire a 60% Joint Venture interest in the Project.
The Company believes there is significant potential to extend existing mineralisation and also discover new mineralisation within the Project area, shown by the recent success at Break of Day.