PERTH (miningweekly.com) – ASX-listed junior Musgrave Minerals has flagged a potential enlarged operation at the Cue gold project, in Western Australia, after a resource update at the Break of Day and Lena deposits.
The two deposits are estimated to host a combined mineral resource of 3.55-million tonnes, grading 3.09% gold for 352 000 oz of gold, with the Break of Day deposit estimated to host some 199 000 oz and the Lena deposit some 153 000 oz.
This was compared with the previous resource estimate of 21 000 oz for Break of Day and 76 000 oz for the Lena deposit.
“This is a significant milestone for the company that will enable the company to assess multiple processing options going forward to maximise shareholder value,” said Musgrave MD Rob Waugh.
“The company has now drilled more than 22 000 m on the project. The mineral resource estimate strengthens the opencut potential of Lena and the underground potential of Break of Day and together with the proximity to existing road and processing infrastructure, significantly increases the future development potential of the project.”
Musgrave earlier this year completed its Stage 1 earn-in at the Cue project, spending $2.7-million to secure a 60% shareholding, and elected to proceed with the Stage 2 earn-in with project owner Silver Lake Resources, which could see it increase its stake in the project area to 80%, by spending an additional A$1.8-million on exploration within the next two years.
Silver Lake in June announced its intention to sell its share in the joint venture after reaching an agreement with fellow-listed Westgold Resources to divest of its Murchison assets, including its interest in the Cue project, for A$10-million.