Gold explorer Musgrave Minerals (ASX:MGV) grabbed the attention of investors in late 2018 with the emergence of the Lake Austin North discovery at its Cue Project in Western Australia’s Murchison region.
Musgrave’s share price surged approximately 70 per cent from late October to the end of the year, aided by the strong Australian dollar gold price, but primarily due to the release of drilling results that confirmed Lake Austin North as an exciting new gold find.
On October 29 Musgrave informed the market that it had received the best assay to date from reverse circulation (RC) drilling at Lake Austin North – a 94 metre intercept grading 2.4 grams of gold per tonne from a depth of 156 metres and ending in mineralisation – from the southernmost hole drilled at the prospect, 18MORC057.
In early December Musgrave followed up with diamond drilling at Lake Austin North where first results included another stunning intercept of 242 metres grading 1.0 gram per tonne of gold from a depth of 61 metres.
This intercept was returned from a hole drilled 50m to the south of 18MORC057 and featured a high-grade core of 45 metres grading 3.3 grams per tonne of gold from 70 metres.
Musgrave Managing Director Rob Waugh said the results suggested that Lake Austin North was a large, well mineralised system, and drilling would continue to further define the size and grade of the discovery.
He said the salt lake system at Cue under which Lake Austin North lies had always been of interest to the company as it had never previously seen any detailed exploration.
Musgrave’s initial approach to exploration of the area involved integrating geophysical surveying methods – aerial electromagnetic and gravity – with enzyme leach geochemistry and regional broad-spaced historical aircore drilling. The company used the data to identify 10 priority targets to test with detailed aircore drilling.
Lake Austin North was one of the first targets tested, with aircore drilling giving a promising indication of the prospect’s potential.
The first RC hole drilled at Lake Austin North then returned 84 metres at 1.7 grams per tonne of gold from a depth of 84 metres, including higher grade zones of 36 metres at 3.6 grams of gold per tonne from 111 metres, and 20 metres at 6.1 grams of gold per tonne from 120 metres.
“Seeing all that broad alteration in fresh rock was the trigger for us to think that this could be significant,” Waugh said.
“These are multi-million ounce targets, and quantifying what we have at Lake Austin North is really the first step.”
Musgrave planned to have two diamond drill rigs in operation at Lake Austin North from early in 2019, along with an aircore rig testing regional targets along strike to the north.
These targets all lie under the lake system in an area that has never been drill-tested.
In December, Musgrave completed a share placement to sophisticated, corporate and institutional investors, raising $5.5 million that will see it sufficiently funded to advance Lake Austin North and the regional exploration program.
This content is produced by Star Investing in commercial partnership with Musgrave Minerals. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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