The Musgrave Minerals Ltd (ASX: MGV) share price has surged more than 20% in today's trading before ending the session 6.5% up. The increase in the Musgrave Minerals share price came after the company reported 'bonanza-grade' drilling results.
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Bonanza drilling results
Earlier today, Musgrave Minerals reported promising drilling results from its Starlight gold discovery at the Break of Day corridor. The company's drilling report included results from 5 reverse circulation (RC) drill holes and 5 diamond drill holes. Results from the report were highlighted by bonanza-grade results of up to 3 metres at 884.7 g/t gold from 5 metres.
Musgrave also provided additional results from the 5 RC holes which included; 22 metres at 5.8 g/t from 15 metres (including 3 metres at 26.2 g/t from 31 metres); 5 metres at 14.3 g/t from 90 metres, and 6 metres at 5.3 g/t from 232 metres. Highlights from the diamond drill holes included; 16 metres at 13.7 g/t from 18 metres (including 4 metres at 40.8 g/t from 18 metres, 9 metres at 6.1 g/t from 25 metres, and 0.5 metres at 25.4 g/t from 269.5 metres).
According to Musgrave's management, the drilling results confirm the high-grade nature of the Starlight and White Light discoveries. The company noted that further drilling is underway to extend the Starlight mineralisation site, with aims to complete a JORC (Joint Ore Reserves Committee) resource update late in the third quarter of 2020.
How has the Musgrave Minerals share price performed?
Musgrave Minerals is a gold and metals explorer and has 100% ownership of its flagship Cue Gold Project located in Western Australia. Both the Starlight and White Light sites at the Break of Day gold corridor are located in the Cue project.
The company has an $18 million earn-in and exploration joint venture with Evolution Mining Ltd (ASX: EVN) over the Lake Austin portion of the Cue Project. In late April, Musgrave completed a $6 million capital raise to accelerate drilling at the Starlight gold discovery site and to test similar targets along the Cue Project. Including today's price action, the Musgrave Minerals share price has surged 390% since late May.
Foolish takeaway
The Musgrave Minerals share price soared more than 20% higher in early trade, hitting an intra-day high of 83 cents. At the close of trade, the company's shares have dipped to around 73.5 cents and are trading 6.5% higher for the day.
