Musgrave Minerals Ltd: Significant Gold Intersections Enhance Big Sky

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) (OTCMKTS:MGVMF) is pleased to report further strong assay results from reverse circulation ("RC") drilling at the Big Sky and Target 14 prospects along the new gold corridor south-west of Lena and Break of Day on its 100% owned ground at its flagship Cue Gold Project in Western Australia's Murchison district (Figure 1*). Broad spaced (100 x 25m) first pass RC drilling continues to identify thick regolith gold mineralisation within the extensive 2.6km-long aircore gold anomaly at Big Sky and within the Target 14* area, 800m to the north. Gold mineralisation remains open to the south and down dip at Big Sky. RC drilling is continuing.

Musgrave Managing Director Rob Waugh said: "RC drilling continues to return positive results at both Big Sky and Target 14 with assay results for a further 19 RC holes received. It's still early days but results continue to be very positive. These two target areas are 800m apart and on the same structure. This 800m gap is currently being drill tested. A 1.2km long zone to the south of Big Sky will also be drill tested in the coming weeks. The Company currently has four drill rigs on site.

Results have currently only been received for broad spaced drilling at Big Sky (100m to 200m spaced holes) with assays received for generally only single RC drill holes on most traverses. Drill traverse line spacing is being infilled within higher grade areas with multiple drill holes on each traverse either drilled or planned. Unfortunately, assay turnaround is slow at present with gold results awaited for more than 75 RC drill holes with the numbers growing daily. We look forward to updating the market with further strong results as assays are received."

The 15,000m RC drilling program to define the extent of gold mineralisation in the regolith and basement rock beneath is continuing with >118 RC drill holes completed to date. Assays are pending for more than 75 RC drill holes from the Big Sky and Target 14 areas.

Big Sky and Target 14 Prospects

RC drilling south-west of Lena within the new 7km-long gold corridor has continued to intersect significant gold mineralisation below thin transported cover (1-10m) in areas not drilled by previous explorers. The Big Sky gold anomaly (Figures 1 & 2*) is defined over 2.6km of continuous strike where it remains open to the north and south. The Big Sky area is 800m south of Target 14*.

RC drilling is currently underway to test the continuity, grade and down dip extent of the mineralisation in oxide and fresh basement rock (Figures 1, 2 & 3*). The Big Sky Prospect is approximately 2km south-west of Break of Day, and the extensive 2.6km gold anomaly remains open to the north and south where further drilling is underway (Figures 1 & 2*).

Six-metre composite samples have been received from a further 19 RC drill holes in the current program at Big Sky (12 holes) and Target 14 (7 holes), with initial holes spaced on 100m to 200m traverse lines. Significant new intersections at Big Sky include:

- 48m @ 1.1g/t Au from 42m (21MORC120), including:
o 6m @ 4.4g/t Au from 66m
- 6m @ 4.5g/t Au from 108m (21MORC121)
- 12m @ 1.9g/t Au from 84m (21MORC114)
- 12m @ 1.9g/t Au from 108m (21MORC115)

Drill hole and assay details are presented in Tables 1a and 1b. All composite intervals assaying above 0.5g/t have been reported in this release and are considered significant where they occur over broad widths. One-metre samples from anomalous gold composites have been submitted for individual analysis with results expected in August-September. It is noted that a number of drill holes steepened from the planned dip and failed to intersect the projected target.

RC drill holes are spaced 40m apart along 100-200m spaced traverse lines with infill drilling underway with a focus on the higher grade and thicker intervals of gold mineralisation intersected to date. The extensive nature and continuity of the gold mineralisation supports the view that the Big Sky Prospect has the potential to add to the Company's existing resource base at Cue.

At Target 14, 1.2km south-west of Break of Day (Figures 1 & 4*) and 800m north of Big Sky, anomalous gold is defined over 300m of continuous strike where it remains open to the south. Significant new intersections include:

- 18m @ 1.2g/t Au from 42m (21MORC105)
- 6m @ 3.9g/t Au from 24m (21MORC110)

Drill hole and assay details are presented in Tables 1a and 1b. All new composite intervals assaying above 0.5g/t have been reported in this release and are considered significant where they occur over broad widths. One-metre samples from anomalous gold composites have been submitted for individual analysis with results expected in August-September.

Numbers Prospect

The Numbers prospect, approximately 3.5km south of Break of Day, has an Inferred Resource of 278,000t @ 2.46g/t Au for 22,000oz gold (see MGV ASX release 16 October 2020, "Annual Report to Shareholders"). It is envisaged that Numbers could be a satellite pit to a larger development at Break of Day/Lena.

One-metre resamples of previously reported six-metre composites from twenty-two resource definition RC drill holes at the Numbers Prospect (Figure 1*) have confirmed the results from the six-metre composite sampling. The intent is to upgrade the resource estimate to the higher confidence Indicated category. These RC, resource definition drill holes are spaced on an approximate 20m x 20m grid. The majority of drill holes intersected mineralisation consistent with the existing model.

Mineralised intersections from one-metre resamples include:

- 18m @ 2.4g/t Au from 60m (21MORC057)
- 17m @ 2.3g/t Au from 78m (21MORC062)
- 6m @ 3.0g/t Au from 21m (21MORC063)
- 16m @ 3.0g/t Au from 52m (21MORC064)
- 7m @ 2.6g/t Au from 135m (21MORC068)
- 12m @ 2.0g/t Au from 86m (21MORC070)
- 10m @ 5.6g/t Au from 50m (21MORC071), including:
o 1m @ 46.4g/t Au from 55m
- 4m @ 3.9g/t Au from 92m (21MORC076)
- 12m @ 5.4g/t Au from 12m (21MORC077), including:
o 5m @ 11.1g/t Au from 14m

All drill hole and assay details are presented in Tables 2a and 2b*. All new intervals assaying above 1g/t have been reported in this release and are considered significant where they occur over broad widths. Drill hole locations are shown on figures in MGV ASX announcement 25 May 2021, "Further RC drill results from White Heat and Numbers prospects".

White Heat Prospect

One-metre resamples of previously reported six-metre composites from RC drilling at White Heat, 300m south of Break of Day (Figure 1), has confirmed previously reported high-grade gold mineralisation. The high-grade shoot at White Heat has a strike extent in fresh rock of up to 80m and has currently only been drilled to a maximum depth of approximately 120m. Three diamond drill holes have been completed at White Heat aimed at confirming the RC drill results. Assays are pending.

Significant new RC intercepts from one-metre resamples include:

- 1m @ 14.4g/t Au from 18m (21MORC051)

All drill hole and assay details are presented in Tables 2a and 2b. All new intervals assaying above 1g/t have been reported in this release. Drill hole locations are shown on figures in MGV ASX announcement 25 May 2021, "Further RC drill results from White Heat and Numbers prospects".

Cue Project

The Cue Gold Project is located approximately 30km south of the township of Cue in the Murchison district of Western Australia. The Lena and Break of Day deposits are 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).

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/WI28Z052

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