Musgrave Minerals Ltd: Bonanza Gold Grades Continue at Starlight 3m @ 884.7 g/t Au

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) is pleased to report assay results for a further five reverse circulation ("RC") drill holes and the first five diamond drill holes from the current program at the new Starlight gold discovery at Break of Day. Drilling continues to confirm the high-grade nature of the Starlight and White Light gold discoveries. Starlight remains open down dip where drilling is continuing. All intercepts reported in the current drilling program are outside the existing Break of Day resource estimate.

The Starlight and White Light gold lodes at Break of Day are located on the Company's 100% owned ground at its flagship Cue Gold Project in Western Australia's Murchison district (Figure 1*). Drilling at Starlight is continuing, with a focus on infilling and also extending the high-grade gold mineralisation at depth.

Drilling will also continue to test for new lodes within the Break of Day/Lena mineralised corridor with a third drill rig due to commence on the 100% owned Musgrave ground in mid-August.

Musgrave Managing Director Rob Waugh said: "Starlight continues to produce stunning gold results in near-surface drilling. Further RC drilling is underway to infill and extend the Starlight mineralisation with the aim of completing a JORC resource update late in Q3 2020. Diamond drilling is also continuing to test for depth extensions of the high-grade Starlight lode below 250 vertical metres and to further define the White Light lode. We anticipate having four drill rigs on site by mid-August."

To date a total of 58 RC holes of a planned 70 holes have been completed with assay results received for 49 holes. Six deep diamond drill hole tails and three infill diamond holes have been completed to date with assays received for five holes. All new assay results are shown in Table 1a with further assays expected within two to three weeks.

The Starlight and White Light mineralised gold lodes lie proximal to the existing Break of Day resource (Figure 2*) within separate southeast-northwest parallel mineralised zones approximately 75m apart. Significantly, all the intersections returned from Starlight and White Light sit outside the current resource at Break of Day.

The mineralisation consists of quartz lodes hosted within a foliated and altered basaltic stratigraphic sequence that typically dips steeply to the south (Figure 3 and 4*). Both lodes have a strike extent of over 100m and are open to the south-east (Figures 3 and 5*) and down plunge.

Discussion of Results

A combination of six metre composites and one metre individual samples have been analysed from the RC holes drilled in the current program with details presented in Tables 1a and 1b. All 6m composite samples above 0.1g/t Au will be re-submitted for individual 1m sample analysis.

Significant new intercepts at the Starlight lode include:

o 14m @ 191.1g/t Au from 4m (20MORC068) including;

o 3m @ 884.7g/t Au from 5m including;

- 1m @ 2,518.8g/t Au from 6m

o 22m @ 5.8g/t Au from 15m including;

o 3m @ 26.2g/t Au from 31m

o 5m @ 14.3g/t Au from 90m (20MORC064)

o 6m @ 5.3g/t Au from 232m (20MORC063)

Diamond drilling at Starlight has returned the following significant intercepts:

o 16m @ 13.7g/t Au from 18m (20MODD008) including;

- 4m @ 40.8g/t Au from 18m and

- 9m @ 6.1g/t Au from 25m

o 0.5m @ 25.4g/t Au from 269.5m (20MODD007)

o 1.0m @ 13.8g/t Au from 320m (20MODD005) confirming the continuity of the mineralisation at depth

Significant new results from the White Light lode include:

o 3.8m @ 40.5g/t Au from 100.2m (20MODD007) including 0.75m @ 203.3g/t Au from 100.2m, which is 20m down dip of 3m @ 38.8g/t Au intersected in 20MORC001

o 1m @ 22.6g/t Au from 115m (20MORC048), 90m up-dip of 6m @ 48.8g/t Au intersected in drill hole 20MORC050 (pre-collar to 20MODD005)

Significant new results from extensions to the Twilight and Velvet lodes at Break of Day include:

o 0.7m @ 34.1g/t Au from 65.1m (20MODD007) extends the Twilight lode approximately 60m south beyond the existing resource estimate;

o 12m @ 6.4g/t Au from 40m (20MORC063) confirms the near-surface gold mineralisation on the Velvet lode

Break of Day

The current resource estimate for the Cue Gold Project totals 6.45Mt @ 3.0g/t Au for 613koz including the Break of Day deposit (868Kt @ 7.2g/t Au for 199koz contained gold) and the Lena deposit (4,3Mt @ 2.3g/t Au for 325koz contained gold) located 130m to the west (see MGV ASX releases dated 14 July 2017 and 17 February 2020).

This current resource estimate does not include any results from the new Starlight and White Light gold discoveries. The updated resource estimate incorporating these results will be completed in late Q3 2020.

Ongoing Exploration

Musgrave 100% tenements

- Follow-up RC drilling on the Starlight lode at Break of Day is now 90% complete and is continuing. Further assays are expected in two-three weeks.

- The diamond drilling program at Starlight to test depth extensions to the mineralisation is continuing with further assays expected in 2-3 weeks.

- Additional drilling on the newly discovered White Light lode at Break of Day is ongoing.

- Additional shallow oxide infill RC drilling at Break of Day on the Twilight and Velvet lodes has commenced.

- A resource update for Break of Day including Starlight and White Light is planned for late Q3, 2020.

Evolution JV

- The Phase 2 aircore drilling program testing high-priority gold targets on Lake Austin, is scheduled to commence this week.

- A passive seismic survey will commence in late July to better estimate cover depths over prospective undrilled areas of Lake Austin.

THE CUE PROJECT

The Cue Project ("the Project") is located in the Murchison district of Western Australia (Figure 6*) and hosts Mineral Resources (Indicated and Inferred) totalling 6.45Mt @ 3.0g/t gold for 613,000oz contained gold. The Company has defined a +28km-long prospective gold corridor that includes the Break of Day-Starlight, Lake Austin North and Mainland-Consols gold discoveries.

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 low-cost 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 (Figure 6*). The Break of Day, Starlight, Lena and Mainland areas are excluded from the Earn-in and Exploration Joint Venture with Evolution Mining Ltd.

Cyprium Australia Pty Ltd ("Cyprium") has earned an 80% interest in the non-gold rights over the northern tenure at Cue including the Hollandaire deposit and a formal joint venture was executed in May 2020 (Figure 6*). Musgrave will retain 100% of the gold rights and a 20% free-carried interest in the non-gold rights to the completion of a definitive feasibility study.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/60E6EC4T

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