Musgrave Minerals share price jumps 40% after revealing bonanza gold results

The Musgrave Minerals Ltd (ASX: MGV) share price is flying after the small-cap ASX miner revealed bonanza grades in near surface drilling.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Musgrave Minerals Ltd (ASX: MGV) share price is starting the trading week off with a bang after the small-cap ASX miner revealed bonanza grades in near surface drilling.

Musgrave Minerals is an active Australian gold and base metals explorer. Its cornerstone project is the Cue Gold Project in the Murchison Province of Western Australia. The company also has a big footprint in the Musgrave Province, one of the least explored exploration frontiers in the country.

For a bit of background, the Cue Gold Project hosts total resources of 6.45 million tonnes at 3.0 grams per tonne (g/t) gold for 613,000 ounces. This includes the Break of Day deposit (868,000 tonnes at 7.2 g/t gold for 199,000 ounces of contained gold) and the Lena deposit (4.3 million tonnes at 2.3 g/t gold for 325,000 ounces of contained gold).

Why the Musgrave Minerals share price is surging

This morning, Musgrave reported assay results for a further 7 reverse circulation (RC) drill holes from the current program at the new Starlight gold discovery.

This follows the announcement of assay results for the first 12 RC drill holes last week which sent the Musgrave share price flying.

Significant intercepts from today's announcement include:

  • 42 metres at 77.3 g/t gold from 30 metres, including:
    • 18 metres at 179.4 g/t gold from 30 metres
  • 61 metres at 12.7 g/t gold from 76 metres, including:
    • 6 metres at 44.6 g/t gold from 76 metres
    • 21 metres at 23.6 g/t gold from 106 metres
  • 22 metres at 21.0 g/t gold 2 metres, including:
    • 9 metres at 49.2 g/t gold from 8 metres
  • 9 metres at 16.5 g/t gold from 225 metres, including:
    • 3 metres 47.6 g/t gold from 225 metres
  • 4 metres at 48.2 g/t gold from 85 metres
  • 2 metres at 37.7 g/t gold from 74 metres

The Starlight link-lode is located at the Break of Day deposit within the Cue Gold Project. The intersections in all drill holes sit outside, but in close proximity to, the current resource at Break of Day.

The drilling is focused on infilling and extending the new high-grade lode where mineralisation has been intersected over a strike of more than 115 metres.

Commenting on the results, managing director Rob Waugh said:

"These are amazing gold grades to see in near surface drilling. Our deepest holes to date are still in high-grade mineralisation at 200 vertical metres where Starlight remains open down dip. The bonanza grades near surface will have a significant positive impact on future development at Break of Day."

The current reverse circulation drilling program at Break of Day is now approximately 80% complete and consists of more than 36 holes for around 7,000 metres.

Assays have been received for 19 holes to date, with further assays expected within 2 weeks.

In addition, a diamond drilling program at Starlight to test depth extensions to the Starlight mineralisation is due to commence this week.

After flying 45.83% at the open, the Musgrave Minerals share price is currently sitting 39.58% higher at 33.5 cents per share. This takes its market capitalisation at the time of writing to around $155 million.

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

A person smashes a wall with a hammer, sending bricks flying.
Resources Shares

Why did the BHP share price get hammered again in November?

ASX 200 investors sent BHP shares tumbling in November. Let’s find out why.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Is Fortescue stock a buy for its monstrous 10% dividend yield?

We should always be careful about a high dividend yield on a mining stock.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Resources Shares

Which ASX mining shares make it into the passive income elite globally?

Clue: BHP isn't one of them.

Read more »

Mining worker wearing hard hat and high vis vest holds thumbs up and smiles
Resources Shares

2 of the best ASX 200 mining stocks to buy now

These stocks are highly rated by analysts at Bell Potter. Let's see what the broker is saying about them.

Read more »

Miner holding cash which represents dividends.
Resources Shares

Could a maiden dividend soon be on the cards for this ASX mining stock?

Reinvestment in growth projects has been the company's priority up to this point

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Resources Shares

Pilbara Minerals shares: What the AGM revealed and what's next

Investors have plenty to digest, from updates on growth projects to the company's evolving strategy.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Resources Shares

Why this expert says it's time to sell Lynas shares

Lynas shares have come under heavy selling pressure in recent weeks.

Read more »

Business people standing at a mine site smiling.
Resources Shares

Forget Fortescue shares and buy this miner

A leading broker expects these two mining shares to trade in opposite directions.

Read more »