Musgrave Minerals Ltd: Bonanza gold grades at White Heat, Cue

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) (OTCMKTS:MGVMF) is pleased to report further high-grade gold assay results from diamond drilling at the White Heat prospect, 300m south of Break of Day 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: "These are bonanza results and support our previous drilling at the high-grade White Heat deposit. The White Heat lode is in a similar orientation and geological setting to the high-grade Starlight Lode only 400m to the north but is currently not included in a mineral resource estimate. These results from White Heat further highlight the potential to discover additional high-grade gold lodes within the project area."

"The combination of near-surface high-grade lodes like White Heat and Starlight, together with the large, moderate grade Big Sky style targets are expected to complement each other and enhance the future development potential of the project. Exploration is continuing to deliver strong results and add value for our shareholders. Drilling will resume at White Heat in September as we continue to extend the plunge of the mineralisation."

White Heat Prospect

Diamond drilling at White Heat (formerly Target 2) continues to identify very high-grade gold mineralisation near surface. The mineralisation at White Heat has been intersected over a strike extent of 70-100m (Figure 2 & 4*) with drilling at depth continuing in September. Three diamond holes were completed as part of our validation phase (Figures 2 & 4*). Very high grades have been identified in the first two holes with the third hole not extending deep enough to intersect the projected position of the high-grade footwall lode. All new results are reported in Tables 1a and 1b*. Significant new intercepts include:

- 8.4m @ 6.8g/t Au from 27.3m (21MODD018) including:
o 1.2m @ 37.2 g/t Au from 27.3m

- 6.8m @ 17.8g/t Au from 47m (21MODD019) in the hanging wall lode including:
o 0.7m @ 112.9g/t Au from 48.1m; and

- 3.4m @ 107.6g/t Au from 74.6m (21MODD019) in the footwall lode including:
o 1.2m @ 303.2g/t Au from 74.6m

The White Heat mineralisation has a similar strike to the Starlight lode at Break of Day, located 400m to the north, (Figures 1 & 2*) and is hosted within a basalt package thought to be the same stratigraphy as that hosting Starlight. A leached near-surface zone is present (Figure 3*) where gold is depleted in the upper saprolite. The mineralisation is open down plunge.

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). The new gold discoveries at White Heat and Big Sky are both outside the existing resource areas.

Ongoing Activities

Musgrave 100% tenements

- RC drilling to better define the gold mineralisation at the Big Sky prospect is continuing with approximately 129 holes completed to date. Further assay results are expected in early September.

- Follow-up RC drilling to define the basement source of gold anomalism at Target 14 is also continuing with further assays expected in early September.

- One-metre resamples from six-metre composite samples of approximately 55 RC drill holes from Big Sky and Target 14 are expected in mid-September.

- Works to progress the prefeasibility level studies at Break of Day and Lena are continuing with additional metallurgical and geotechnical test work underway. First phase hydrological drilling has been successfully completed.

Evolution JV

- Follow-up diamond drilling at the West Island and Austin North prospects on Lake Austin is continuing with four holes completed in the current program. Assays are pending.

- Aircore drilling on Lake Austin to define additional targets for basement diamond drill testing is continuing. Assays are pending.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/AVCL05VY

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