Musgrave Minerals Ltd (ASX: MGV) ('Musgrave' or 'the Company') is pleased to report highgrade gold results from reverse circulation ('RC') drilling at Mainland on the Company's flagship Cue Gold Project in Western Australia's Murchison district.

Musgrave has an option agreement to acquire 100% of the basement gold rights at Mainland.

Musgrave Managing Director Rob Waugh said 'This is a great early result at Mainland and supports the Company's view that there are significant gold discoveries still to be made in the Murchison. These early results are not dissimilar to the early results at Break of Day with the gold mineralisation remaining open to the west and down dip. Mainland has a long history of alluvial gold production and to discover a basement source for some of this historical production is a significant step forward.'

Assay results from the latest RC drill program at Mainland returned high-grade gold in adjacent holes at the Consols Prospect where the mineralisation remains open at depth and along strike to the west.

Following the execution of an Option Agreement to acquire the Mainland tenements near Cue in March 2019, the Company completed an initial RC drilling program and intersected 3m @ 5.4g/t Au from 74m down hole (19MORC008) at the Consols target. Follow-up RC drilling consisted of 12 holes for 1,006m across three targets and has extended the Consols gold mineralisation along strike and down dip where it remains open and untested. Drill sampling involves a combination of six metre composite and one metre individual samples.

Drill hole 19MORC018 drilled 35m down dip of the previous gold intercept in 19MORC008 (3m @ 5.4g/t Au) returned a high-grade result of 12m @ 8.1g/t Au from 108m down hole including 6m @ 14.2g/t Au from 114m from 6m composite samples. The mineralisation is hosted by quartz veining within a medium grained dolerite. Individual one metre samples have been submitted for analysis.

Drill hole 19MORC019, collared 25m to the north-east of 19MORC008 intersected 2m @ 55.4g/t Au from 52m down hole (1m individual samples), including 1m @ 108.3g/t Au from 52m.

Drill hole 19MORC020 collared 25m to the southwest of 19MORC008 returned 6m @ 3.3g/t Au from 70m down hole including 3m @ 5.2g/t Au from 73m (1m individual samples). Assay results for a fourth RC hole drilled a further 25m to the south of 19MORC020 are awaited together with one metre individual assay results for six metre composite samples for drill hole 19MORC018.

Additional follow-up drilling is currently being planned and will be scheduled for Q1 2020.

The Mainland area is excluded from the Earn-in and Exploration Joint Venture with Evolution Mining Ltd ('Evolution').

Discussion

Significant alluvial gold production from the Mainland area has been ongoing since circa 1900 and historical records indicate that the main underground mines at Mainland produced 20,184oz gold from 1897-1901 and 1925-1930 at an average grade of 62.9g/t Au.

The holes drilled by Musgrave are showing good continuity of mineralisation with variable high grades consistent with the historical underground production records or the near surface mineralisation that was mined in the area. The mineralisation is hosted in quartz veins within mafic dolerites and sedimentary iron formation units and is currently open along strike and at depth. The potential extent of the mineralisation is not yet known and further drilling is required but initial indications are positive that this could be a new gold discovery for the Company.

Ongoing Exploration

Remaining RC drill assay results and re-assays of anomalous 6m composite samples at one metre intervals from Mainland are expected in mid-December.

Initial composite assay results for RC drilling at Lena and Break of Day to extend and grow the existing resources are expected in early December.

The Company is working towards delivering a Lena resource update in Q1 2020.

Diamond drilling on the Evolution JV at Lake Austin North is progressing well with drilling expected to continue into late December and assay results expected in February 2020.

On the broader JV area over Lake Austin at Cue, Evolution and Musgrave are planning a large aircore drilling program to further define gold targets for basement drill testing. This drilling is scheduled to commence in Q1 2020.

Heritage surveys are currently being organised prior to the commencement of this aircore program.

Further follow-up RC drilling at Mainland is currently being planned for Q1 2020.

THE CUE PROJECT

The Cue Project ('the Project') is located in the Murchison district of Western Australia. The Company has defined a +28km-long prospective gold corridor that hosts the Break of Day and Lena gold resources and the Lake Austin North gold discovery.

The Company believes there is significant potential to extend existing mineralisation and discover new gold deposits within the Project area, as demonstrated by the recent drilling success at Break of Day, Lena and Lake Austin North. Musgrave's intent is to investigate options to best develop a lowcost operation, capable of delivering strong financial returns for its shareholders. Musgrave has executed an $18 million Earn-in and Exploration Joint venture with Evolution Mining Ltd over the Lake Austin portion of the Cue Project.

Contact:

Rob Waugh

Tel: +61 8 9324 1061

About Musgrave Minerals

Musgrave Minerals Limited 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 NiCu-Co prospective Musgrave Province in South Australia.

Forward Looking Statements

This document may contain certain forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Musgrave Minerals Limited's (Musgrave's) current expectations, estimates and projections about the industry in which Musgrave operates, and beliefs and assumptions regarding Musgrave's future performance. When used in this document, words such as 'anticipate', 'could', 'plan', 'estimate', 'expects', 'seeks', 'intends', 'may', 'potential', 'should', and similar expressions are forward-looking statements. Although Musgrave believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Musgrave and no assurance can be given that actual results will be consistent with these forward-looking statements.

(C) 2019 Electronic News Publishing, source ENP Newswire