Musgrave Minerals Ltd: High-grade near surface gold extended at Target 5, Cue

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) is pleased to report further strong assay results from regional aircore drilling across numerous targets on its 100% owned ground at its flagship Cue Gold Project in Western Australia's Murchison district (Figure 1)*.

Musgrave Managing Director Rob Waugh said: "This is another excellent set of results from our regional drilling program where we continue to have success with our gold exploration. Further strong, early stage, near surface, gold hits were received across a number of targets with Target 5 being the highlight. Target 5 is open along strike, both to the north and south, with significant potential to extend the mineralisation. We are back drilling again at the White Heat Prospect and will have a second drill rig on site in the first week of February.

In late 2020, a total of 445 aircore holes (25,298m) were completed over 25 targets with composite assays now received for all holes (Figures 3 and 5*). All new anomalous assay results and corresponding drill collars are shown in Tables 1a and 1b. A Phase 2 aircore drilling program will commence in early February to define the extent of the new anomalies following these exceptional early results.

Target 5

Follow-up drilling at Target 5 confirmed and extended the gold anomalism along strike to over 120m (Figures 2 and 3*). Two parallel zones of gold mineralisation are interpreted from early drilling (Figures 4 and 5*) with both zones open along strike to the north and south. New intercepts from 6m composite samples include:

- 6m @ 10.62g/t Au from 30m (20MUAC397)

- 6m @ 5.23g/t Au from 24m (20MUAC412) within a broader interval of:

o 18m @ 1.97g/t Au from 24m to EOH

- 6m @ 4.56g/t Au from 36m to EOH (20MUAC407)

- 6m @ 3.24g/t Au from 36m to EOH (20MUAC396)

- 30m @ 1.10g/t Au from 12m to EOH (20MUAC402)

- 18m @ 1.15g/t Au from surface (20MUAC403)

Many of the drillholes ended in mineralisation (Figures 4 and 5*) so the extent of the gold intersections are not fully defined and further drilling will be completed as a priority. The mineralisation is hosted within a combination of felsic schists, porphyry and basalts. The level of anomalism and the multiple end-of-hole intercepts is extremely encouraging. There is also no drilling for 500m to the south of Target 5 towards Target 20 (Figure 3*) and no drilling to the north for >2.5km to Target 14 (Figure 2*). Further extensional follow-up aircore drilling is planned for February with reverse circulation (RC) follow-up basement drilling beneath the current intercepts scheduled for late January.

Target 14

Follow-up drilling at Target 14 has confirmed the regolith gold anomalism over a strike length of approximately 2.8km were it remains open to the south. New intercepts (Figure 2*) from 6m composite samples include:

- 12m @ 1.36g/t Au from 18m (20MUAC387)

- 6m @ 1.02g/t Au from 36m to EOH (20MUAC391)

Target 20

Follow-up drilling at Target 20 has extended the near surface gold anomalism along strike for 140m where it remains open both north (for 500m) and south (for 1.5km).

New intercepts from 6m composite samples include:

- 12m @ 1.36g/t Au from 18m (20MUAC387)

- 6m @ 1.02g/t Au from 36m to EOH (20MUAC391)

- 24m @ 0.66g/t Au from 12m (20MUAC395) - end of drill traverse, open to south-west

Additional anomalous gold results have been identified at targets 25, 21, 18, 17 and 4 (Table 1a*). Further aircore drilling to define the extents of the gold anomalism will commence in February.

No significant gold anomalism was identified in the aircore drilling on the new targets at Mainland.

The regional drilling program has been very effective in testing targets derived from geophysical, geochemical and geological data and is focused on the potential for near-surface, high-grade gold mineralisation on structures cross-cutting stratigraphy like that seen at Starlight and potential new structural gold corridors parallel to the Lena/Break of Day corridor (regional Targets 14 and 15*).

A combination of 6m composites and 1m individual samples have been analysed from aircore/RC holes (the drill rig has the capacity to switch between aircore and RC hammer depending on ground conditions) drilled in the current program with details presented in Tables 1a and 1b. All intervals assaying 6m above 0.1g/t Au (or gram x metre equivalents) have been reported in this release and are of potential significance.

Cue Project - Break of Day

The Break of Day deposit is located approximately 30km south of Cue in the Murchison district of Western Australia. The deposit is only 5km from the Great Northern Highway, approximately 600km north of Perth.
The current resource estimate for the Cue Gold Project totals 6.4Mt @ 3.2g/t Au for 659koz including the Break of Day deposit (797Kt @ 10.2g/t Au for 262koz contained gold) and the Lena deposit (4.3Mt @ 2.3g/t Au for 325koz contained gold) located 130m to the west of Break of Day (see MGV ASX announcements dated 17 February 2020 and 11 November 2020).

Ongoing Activities

Musgrave 100% tenements

- Initial aircore follow-up drilling at high priority targets including White Heat, and targets 5, 9, 14, 15, 17, 20 and 21 is now complete. All composite assays have been received with approximately 20% of one-metre assays still pending.

- Further aircore/RC drilling on high-priority targets 5, 9, 14, 15, 17, 20 and 21 is scheduled to commence in February 2021.

- RC drilling at the White Heat target has commenced to follow-up previous high-grade aircore results.

- Regional aircore drilling of new structural and geological targets at Cue is currently being planned and will commence late in Q1.

- PFS studies at Break of Day and Lena are being planned and quotes assessed for commencement of development studies in February.

Evolution JV

- The Phase 2 aircore drilling program testing high-priority gold targets on Lake Austin is complete with assays expected through to February 2021.

- Compilation of full results is underway to rank and prioritise targets in what is developing as a large mineral system.

- Diamond drilling to follow-up these extensive regolith gold anomalies is scheduled to commence in February 2021.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/1082RADF

About Musgrave Minerals Ltd:

Musgrave Minerals Ltd. (ASX:MGV) is an active Australian gold and base metals explorer. The Cue Project in the Murchison region of Western Australia is an advanced gold and copper project. Musgrave has had significant exploration success at Cue with the ongoing focus on increasing the gold and copper resources through discovery and extensional drilling to underpin studies that will demonstrate a viable path to development in the near term. Musgrave also holds a large exploration tenement package in the Ni-Cu-Co prospective Musgrave Province in South Australia.

Source:
Musgrave Minerals Ltd.

Contact:

Rob Waugh Managing Director Musgrave Minerals Ltd. +61 8 9324 1061 Luke Forrestal Associate Director Media and Capital Partners +61 411 479 144