Musgrave Minerals Ltd (ASX: MGV) ('Musgrave' or 'the Company') is pleased to report highgrade gold results from reverse circulation ('RC') drilling at Lena and individual one metre resamples from drilling at Break of Day and Mainland on the Company's flagship Cue Gold Project in Western Australia's Murchison district.

Lena, Break of Day and Mainland are not part of the Evolution Joint Venture.

Musgrave Managing Director Rob Waugh said 'These are further strong results at Lena, Break of Day and Mainland and continue to highlight the resource growth potential of all three prospects. With drilling already commenced for the 2020 year we are looking forward to more exciting results as the programs progress. The strong results from drilling at Lena to date confirm the geological interpretation which is showing good continuity of the high-grade shoots at depth and will further enhance the resource update expected later in Q1 2020.'

The RC drill programs at Lena, Break of Day and Mainland consisted of a combined 29 holes for 3,568m. The final assays for this drilling have now been received with high-grade results across all three prospect areas.

Lena

Drill hole 19MORC039 was drilled at the northern end of Lena as an infill hole to confirm the high-grade shoot within the current resource and intersected two zones of mineralisation. The hole intersected gold near surface with 5m @ 2.7g/t Au from 2m within a broader interval of 12m @ 1.5g/t Au from 2m down hole. Further downhole assays returned 5m @ 12.1g/t Au from 82m within an interval of 46m @ 1.5g/t Au from 82m to end of hole where it remains open. This zone is also open down plunge.

Drill holes 19MORC041 and 19MORC042, drilled as infill holes at the southern end of Lena, confirmed the high-grade zone and intersected 9m @ 6.4g/t Au from 116m down hole (19MORC041) including 2m @ 22.3g/t Au from 121m. Drill hole 19MORC042 intersected 3m @ 5.4g/t Au from 113m down hole. The zone is open down plunge.

Break of Day

Drill hole 19MORC037, previously reported on 3 December 2019 was the stand-out drill hole of the program and intersected an interpreted linking structure assaying 45m @ 11.8g/t Au from 144m down hole, including 5m @ 29.2g/t Au from 150m and 23m @ 16.2g/t Au from 166m.

One metre individual re-samples have been received for drill hole 19MORC031, drilled to test the southern extension of Break of Day, and returned a high-grade result of 3m @ 7.2g/t Au from 128m down hole including 1m @ 17.7g/t Au from 128m confirming the southerly plunge to the high-grade shoot where it remains open at depth. Additional drilling is currently being planned at Break of Day to follow-up the new interpretation of link structures at several positions along the deposit. This drilling will commence in late January 2020.

Mainland

Assay results for the final drill hole from the Mainland RC drilling program at Consols have been received, with hole 19MORC046 terminating before intersecting the mineralised zone. The mineralised high-grade gold lode is interpreted to plunge beneath drill hole 19MORC046 to the south-west and therefore remains open down plunge in this direction.

One-metre individual samples have been received for drill hole 19MORC018, and returned a highgrade result of 3m @ 38.2g/t Au from 113m down hole, including 1m @ 102.5g/t Au from 114m (previous reported 6m composites returned 12m @ 8.1g/t Au), confirming the southerly plunge to the high-grade shoot where it remains open at depth below hole 19MORC046.

Low-grade oxide mineralisation has been identified in drill holes 19MORC029 and 19MORC030 at Mainland. These areas have seen no historical drilling and further basement drill testing of the fresh rock beneath this zone of near surface weathered material is planned. Additional follow-up drilling is currently being planned at Consols and will commence in February 2020.

The Break of Day, Lena and Mainland areas are excluded from the Earn-in and Exploration Joint Venture with Evolution Mining Ltd ('Evolution').

Discussion

The positive results at Lena confirm the geological interpretation which is showing good continuity of the high-grade shoots at depth and will further enhance the resource update expected later in Q1 2020.

At Break of Day the identification of the potential high-grade 'link-lode' structure could be significant with further drilling planned for late January 2020. This is a critical step in determining the upside potential of this linking structure. If successful, this new drilling at Break of Day could lead to a Break of Day resource update in Q2, 2020.

At Mainland, the positive high-grade gold results at the Consols prospect remain open to the north-east, south-west and down plunge where further drilling is planned to commence in February 2020. These early positive results at Mainland highlight the upside potential of the area to host new high-grade gold mineralisation.

Contact:

Rob Waugh

Tel: +61 8 9324 1061

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