Musgrave further said "thick intervals of gold mineralisation at Big Sky indicate the potential for a large well-mineralised gold system with discrete zones of high-grade mineralisation along more than 2.6km of strike".

Hits reported included 84m at 1.4 grams per tonne from 24m, within which there was an interval of 12m at 6.6gpt from 66m.

Further assays are pending.

Big Sky is about 2km southwest of Musgrave's mainstay Break of Day target, with both part of the overall Cue gold project.

Cue has total resources of 6.4 million tonnes grading 3.2 grams per tonne gold for 659,000oz, including Break of Day's 797,000t at 10.2gpt for 262,000oz.

Musgrave ended the March quarter with A$24 million cash.

Shares in Musgrave have recently been trading at levels around 36c, capitalising the company at $192 million.