ASX RELEASE 03 November 2016
ASX: MGV
High Grade Results Continue at Break of Day
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RC drilling continues to intersect high grade gold at Break of Day
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Significant results from the latest assays received include:
o 5m @ 33.0g/t Au from 154m (16MORC048) including;
1m @ 134.4g/t Au from 155m,
o 2m @ 10.6g/t Au from 157m (16MORC045)
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The mineralisation is open along strike and down plunge
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Further assay results are expected within the next fortnight
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Diamond drilling to commence next week
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 16MORC048 intersected 5m @ 33.0g/t Au (uncut) from 154m down hole including 1m @ 134.4g/t Au from 155m down hole (Figure 1 and 4). The intersection is interpreted to be in the Middle Lode between the projected positions of the Twilight and Velvet Lodes and 25m north of drill hole 16MORC001 (2m @ 22.0g/t Au).
Drill hole 16MORC045 intersected 2m @ 10.6g/t Au from 157m down hole in the projected position of the Twilight Lode. This extends the mineralisation approximately 50m up dip of previous drill hole 16MORC026 (1m @ 21.6g/t Au).
These assay results continue to enhance the geological understanding at Break of Day and increase the potential of further gold mineralisation being discovered with additional drilling as the geological model continues to develop.
A Diamond drilling program is due to commence next 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 27 drill holes. Assay results for the remaining 5 drill holes will be received within the next fortnight and will be reported as they become available. 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 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 Velvet 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 Velvet Lode)
Figure 3: Break of Day long section of the Twilight gold lode
Figure 4: Break of Day cross section 13325mN - local grid (vertical section through mineralisation)
OTHER TARGETS
A surface EM survey has commenced on 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.