Musgrave Minerals is set to raise $6 million to advance drilling at the Starlight gold discovery within the Cue project in Western Australia following an oversubscribed share placement.
With institutional and sophisticated investors backing the project, Musgrave will begin reverse circulation drilling within the next fortnight, followed by diamond drilling.
Drilling will be completed at the Break of Day prospect as well as other targets within the company’s wholly owned Cue project, with the funds also covering general working capital.
The assays uncovered at Break of Day include 6 metres at 55.8 grams per tonne of gold from 108 metres, 42 metres at 5.6 grams per tonne of gold from 146 metres, 7 metres at 7 grams per tonne of gold from 183 metres and 60 metres at 2.7 grams per tonne from 96 metres.
Musgrave has also returned assays over at strike length of 75 metres with high-grade mineralisation remaining open in all directions.
The discovery is expected to “grow significantly” as further drilling is completed, according to Musgrave managing director Rob Waugh.
“I’d like to welcome the new investors to the company and thank those existing investors who participated in the placement,” Waugh said.
“The funding will allow Musgrave to advance drilling of the new high-grade Starlight gold discovery and test other similar targets on the Cue project.
“Diamond drilling will follow leading to a scheduled resource update for Break of Day/Starlight late in the third quarter of 2020.”
After the completion of the share placement, Musgrave Minerals will have a cash balance of approximately $8.4 million.