Musgrave shares spike on drilling results

Perth-based explorer Musgrave Minerals’ share price has spiked 40 per cent after the company released drilling results for its Deering Hills project in northern South Australia.

Musgrave announced it has intersected large nickel-copper sulphide at its Pallatu target after it diamond-drilled a total of five holes for 504 metres, testing conductive targets identified from electromagnetic surveys carried out in October.

All five drill holes at a minimum depth of 35.7 metres have shown system mineralisation with peak assays of up to 0.5 per cent nickel, 0.8 per cent copper and 0.6 grams per tonne of platinum, palladium and gold over narrow intervals in fresh rock.

Musgrave’s interpretation is that all surface indicators are sourced from a combination of massive and matrix sulphide and graphite, associated with mineralisation.

“This discovery is potentially very significant as it has defined a new mineralised intrusive system in the region,” Musgrave managing director Rob Waugh said.

“A reassessment of ground EM data has highlighted a potentially significant and extensive subtle conductor at depth to the north of the current drilling.

“The important question for us is whether we are on the edge of something significant; only further exploration, including additional EM and drilling will answer that.”

The company holds a 100 per cent interest in the EL5317 licence at Pallatu containing the nickel-copper sulphide mineralisation.

Musgrave’s share price has fluctuated since June this year upon news of identified mineralised targets at the Menninnie Dam in July and its Bryson Hill licences.

The company recently completed a 3,350 metre air-core drilling program to test new silver-zinc-lead and copper-gold targets at Menninnie Dam in the southern Gawler region of South Australia, of which it holds a 51 per cent stake.

Results of the program are due to be released in January.

Shares in Musgrave are up 40 per cent from 7 cents to close at 9.8 cents per share today.