Musgrave Minerals Ltd: Thick Aircore Intercepts Enhance West Island Prospect

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) (OTCMKTS:MGVMF) and Evolution Mining Ltd (ASX:EVN) are pleased to report further assay results (Table 1a*) from the current aircore and diamond drilling programs on the Cue Joint Venture over Lake Austin in Western Australia's Murchison district. The aircore results have extended the large regolith gold mineralisation to over 1.6km at the West Island Prospect and are centred 700m south of the recent diamond drilling.

The West Island zone is part of a broader regional 7km-long anomalous gold corridor within the joint venture (Figure 1*). The mineralisation at West Island is hosted within a differentiated dolerite unit, similar to that hosting the high-grade Great Fingall and Golden Crown deposits 25km to the north at Cue.

The Great Fingall and Golden Crown deposits host a combined 4.4Mt @ 14.1g/t Au for 2.0Moz gold (Total Indicated and Inferred Resources and past production) (see Westgold Resources Ltd. (WGX) ASX announcement 10 June 2020, "Investor Presentation June 2020 - ASX Release", page 15).

Musgrave Managing Director Rob Waugh said: "This is an excellent result from aircore drilling and shows the extensive and thick nature of the regolith gold dispersion in this area. Diamond drilling has commenced in this new target zone 700m south of previous basement drilling and we look forward to providing the results as they come to hand. The diamond drilling will test for the possibility of multiple parallel basement gold lodes which have the potential to enhance the economics of a potential new discovery."

Evolution's Vice President Discovery and Business Development Glen Masterman said: "We are very pleased with the recent drilling results which have significantly increased the footprint of the mineral system we have identified on Lake Austin. The results reinforce our belief in the high-quality project we are delineating and validate the original area selection work by the Evolution team that led to the formation of our partnership with Musgrave. Evolution is well on its way to completing the 75% earn-in and we are developing plans with our partner to accelerate the drilling program over the next several months".

Lake Austin Aircore Drilling Program Results

Under the Musgrave - Evolution Joint Venture (Figure 1*), two phases of regional aircore drilling have been completed on Lake Austin since October 2019 and a third phase of over 17,000m of drilling is currently underway. 141 drill holes for 13,799m of aircore drilling has been completed to date in the current phase of the program.

Assay results for the first 32 drill holes in the program have been received. Strong aircore results in the West Island area have extended the regolith gold anomalism to over 1.6km of strike where it remains open to the north and south. The regolith mineralisation is hosted within weathered Archaean dolerite below approximately 60-90m of Tertiary lake sediment cover. The regolith gold mineralisation is extensive and is over 150m wide on some sections (Figure 4*).

New aircore results include:

o 67m @ 0.82g/t Au from 87m to EOH (21MOAC018) including:
- 44m @ 1.17g/t Au from 87m

o 67m @ 0.87g/t Au from 88m to EOH (21MOAC019) including:
- 12m @ 3.33g/t Au from 108m

o 46m @ 0.72g/t Au from 96m (21MOAC020) including:
- 20m @ 1.46g/t Au from 110m

o 68m @ 1.49g/t Au from 110m to EOH (21MOAC024) including:
- 12m @ 4.41g/t Au from 134m

o 53m @ 2.01g/t Au from 108m to EOH (21MOAC025) including:
- 27m @ 3.63g/t Au from 134m to EOH

o 41m @ 0.57g/t Au from 138m (21MOAC027) including:
- 20m @ 0.99g/t Au from 158m

o 69m @ 0.67g/t Au from 106m to EOH (21MOAC028) including:
- 36m @ 1.06g/t Au from 112m

o 42m @ 0.55g/t Au from 116m (21MOAC032) including:
- 18m @ 1.0g/t Au from 124m

The aircore results above are approximately 700m south of the existing diamond drilling at West Island (21MODD024) and are the strongest aircore intersections to date on Lake Austin. Diamond drilling to test the basement fresh rock below this new zone has commenced (Figure 4*). All new aircore drill hole collars with assay results above 100ppb Au are presented in Tables 2a and 2b*.

Lake Austin Diamond Drilling Program Results

Nine diamond drill holes have been completed in the current program for 2,850m (of a planned total of 7,000m) with seven holes drilled at West Island. Assays have been received for the first two diamond holes with significant intercepts including:

o 8.0m @ 3.0g/t Au from 212m (21MODD024) including:
- 0.9m @ 19.7g/t Au from 214.8m

This diamond drill hole is approximately 700m north of the high-grade aircore results reported above.

The West Island diamond drill holes are interpreted to have intersected multiple parallel zones of basement gold mineralisation (Figure 2), all hosted within differentiated dolerite, a favourable host unit that extends over multiple kilometres of strike (Figures 2 and 4*). The intersections are associated with extensive gold-in regolith mineralisation which aircore drilling has shown to extend for at least 1.6km of strike length at West Island. The West Island zone is part of a broader regional 7km-long anomalous gold corridor within the joint venture tenements (Figure 1*). The diamond drilling to date at West Island has only tested a small area of basement and the mineralisation remains open along strike and at depth. Diamond drilling at West Island is continuing.

All new diamond drill hole collars with assay results above 1g/t are presented in Tables 1a and 1b*.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/5A12N2LM

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