Musgrave Minerals Ltd: Starlight Gold Mineralisation Extended

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) is pleased to report assay results for a further 10 reverse circulation ("RC") drill holes and four 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 discovery. Starlight remains open down plunge where drilling is continuing. All intercepts reported in the current drilling program are outside the existing Break of Day resource estimate.

Musgrave Managing Director Rob Waugh said: "These are further excellent drill results from Starlight which is showing great continuity in the top 200m. We are currently focusing on the depth extents at both Starlight and the new White Light discovery. The regional program has also kicked off with the focus on making additional high-grade gold discoveries in the belt."

The Starlight gold lode at Break of Day is 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.

An additional drill rig has arrived on site to test for new lodes within the Break of Day/Lena mineralised corridor on 100% owned Musgrave ground. This program will test 18 new targets derived from geophysical, geochemical and geological data and focus on the potential for high-grade gold mineralisation on structures cross-cutting stratigraphy similar to that seen at Starlight.

To date a total of 66 RC holes have been completed at Starlight and White Light with assay results received for 60 holes.

A further 21 short RC holes have been completed to further test the near surface Twilight and Velvet lodes at Break of Day. Assays are pending.

Nine deep diamond drill hole tails and four infill diamond holes have been completed to date with assays received for eight holes. All new assay results are shown in Table 1a with further assays expected within 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 estimate at Break of Day.

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

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 12m @ 9.4g/t Au from 129m (20MORC069) including;

o 5m @ 20.6g/t Au from 129m

o 8m @ 17.0g/t Au from 74m (20MORC071) including;

o 2m @ 56.4g/t Au from 74m and

o 4m @ 16.1g/t Au from 149m in a footwall zone (20MORC071)

o 12m @ 19.5g/t Au from 3m (20MORC085)

Diamond drilling at Starlight has returned the following significant intercepts:

o 4.7m @ 7.0g/t Au from 132.2m (20MODD009) and

o 6.8m@ 2.3g/t Au from 147m in a footwall zone

o 5.6m @ 12.7g/t Au from 257.6m (20MODD010) extending the high-grade mineralisation 40m down dip

o 1.0m@ 12.4g/t Au from 401m (20MODD011) confirming the continuity of the mineralisation to 350 vertical metres

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 announcements 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 is scheduled for late Q3 2020.

Ongoing Exploration

Musgrave 100% tenements

- Follow-up RC drilling on the Starlight lode at Break of Day is now complete with further assays expected in approximately three weeks.

- The diamond drilling program at Starlight to test depth extensions to the mineralisation is continuing with further assays pending.

- 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 been completed with results expected to confirm the geological interpretation.

- 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 has commenced with approximately 3,000m completed of a planned 21,000m program.

- A passive seismic survey to better estimate cover depths over prospective undrilled areas of Lake Austin is now complete with interpretation underway.

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/23M2R7M4

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