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High-grade gold intersected at Lena

Materials
ASX:MGV      MCAP $230.5M
19 August 2019 22:22 (AEST)

Musgrave Minerals has intersected highly encouraging results from two prospects within its Cue Gold Project in Western Australia.

Assays from the first reverse circulation (RC) holes at Lena have been received as well as those from its maiden drilling program at Mainland.

The Lena deposit has an existing JORC 2012 resource of 2682kT at 1.77g/t gold for 153,000 ounces of gold.

Lena consists of a number of gold lodes, with some having significant high-grade potential below the existing resource.

Three RC drill holes were completed at Lena with one of the holes intersecting two separate high-grade lodes. Both of these intercepts are below the existing resource estimate.

Better results include 1 metre at 42.8g/t gold from 153 metres and 1 metre at 25.7g/t gold from 110 metres.

This new drilling supports the re-interpretation of historical drill data and has identified a high-grade southernly plunging shoot that remains open.

A number of historical high-grade diamond core intercepts lie within this extension of the high-grade gold lode.

The second hole in this program was drilled 110 metres, along strike, to the north of Break Day.

Results of 1 metre at 8g/t gold and 3 metres at 3.9g/t gold were intersected and it’s interpreted to be a potential northern extension of Break Day and will require follow up drilling.

“The upside at Lena is significant with drilling confirming high-grade gold mineralisation below the existing resource,” Managing Director at Musgrave, Rob Waugh, said.

“Our reinterpretation of the geology and shoot control has highlighted the excellent potential to extend the current Lena resource and we look forward to further strong results as drilling continues.”

Diamond drilling has now begun at Lena to test for further extensions to the mineralisation below the existing resource.

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