Musgrave Minerals Ltd: New High-Grade Gold Trend Identified in Regional RC Program

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 Amarillo Prospect (previously Target 14), west of Break of Day and additional gold mineralisation identified along a new zone (Waratah zone), 400m east of Break of Day. Both areas are on the Company's 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 further strong results and support the upside prospectivity of the Cue Project. We continue to define new targets and hit new mineralised zones. The new Waratah zone is only 400m east of Break of Day. All new intersections sit outside the mineral resource estimates and the drill spacing is still very broad at ~200m with further infill required."

"Interestingly, Waratah was a lower priority target which coincided with the proposed waste and tailings storage facility locations in the early PFS design works. This preliminary design will obviously now need to be re-assessed."

"The potential for future resource additions at Big Sky and White Heat will likely impact design planning as well. Resource RC drilling and diamond drilling will recommence in the new year at Big Sky. This work will enable a maiden Big Sky resource estimate in late Q2 2022".

"The results show that exploration continues to identify strong gold mineralisation in previously untested and poorly tested areas as demonstrated by the newly identified near surface high grade Waratah gold trend east of Break of Day."

This new gold mineralisation is near surface, defined in three prospective zones and remains open down dip.

In addition, Musgrave is continuing to define further high-grade gold in the regolith at the Amarillo Prospect (previously named Target 14) with additional follow-up drilling to continue in late January.

Waratah Trend

The Waratah trend is approximately 400m east of and runs parallel to the Lena/Break of Day corridor (Figure 1*). It is interpreted to extend for over 4km of strike with gold mineralisation identified in at least three separate zones that are individually between 200m and 400m of strike. The mineralisation is hosted within a sequence of sedimentary iron formation and dolerites. Mineralisation remains open down plunge and is also open to the south in Zone 3 (Figure 2*).

Twenty-seven RC drill holes were drilled to test this new corridor with a highlight of significant results listed below and presented in Tables 1a and 1b*.

Intersections include:

o 2m @ 28.1g/t Au from 78m (21MORC359), including;
o 1m @ 53.2g/t Au from 78m
o 2m @ 6.1g/t Au from 87m (21MORC361)
o 2m @ 5.8g/t Au from 31m (21MORC350)
o 5m @ 2.6g/t Au from 36m (21MORC352)
o 8m @ 1.7g/t Au from 33m (21MORC344)
o 5m @ 2.0g/t Au from 98m (21MORC370)

Amarillo (previously named Target 14)

At Amarillo, 1.2km south-west of Break of Day (Figure 1*) and 800m north of Big Sky, RC drilling continues to intersect significant regolith gold mineralisation (Figure 3*) including:

o 9m @ 8.7g/t Au from 44m (21MORC371) including;
o 2m @ 35.1g/t Au from 51m
o 3m @ 1.4g/t Au from 45m (21MORC372)
o 3m @ 11.3g/t Au from 45m (21MORC375)

Basement follow-up drilling will be planned for late January. Drill hole and assay details are presented in Tables 1a and 1b*.

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). The new gold discoveries at White Heat, Big Sky, Amarillo, Waratah and Mosaic are all outside the existing resource areas.

Ongoing Activities - Musgrave 100% tenements

o All on site drilling was temporarily suspended for the Christmas-New Year break. Drilling will recommence around 10 January 2022.

o Initial follow-up drilling of the new high-grade gold lode (the Mosaic Lode) identified south of White Heat is complete with assays due in early February.

o Resource definition diamond drilling at the Big Sky Prospect is continuing with further assay results from RC drilling expected in February. The aim is to deliver a maiden Mineral Resource estimate at Big Sky in Q2 2022.

o RC pre-collars for resource conversion diamond drilling at Break of Day and Lena have commenced with diamond tails to commence in February.

o A regional aircore program is underway to test the southern extension of the prospective West Island dolerite identified on the Evolution JV to the north.

o Works to progress the prefeasibility level studies at Break of Day and Lena are ongoing with mining studies, environmental monitoring and assessments, metallurgical, processing, design and geotechnical test work continuing.

Evolution JV

o Follow-up diamond drilling on Lake Austin to test the basement beneath the new regolith gold mineralisation identified in recent aircore drilling at West Island will be ongoing following a Christmas-New Year hiatus.

o Further assay results for diamond drill holes at West Island are pending.

o Assay results for the recently completed aircore drilling program on Lake Austin are pending.

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

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