Musgrave Minerals Limited (ASX: MGV), headquartered in West Perth, is a mineral exploration company that explores for, identifies, and develops gold and base metals in Australia. Besides, it also has interests in copper, silver, zinc, lead, and nickel. Its flagship property is the Cue Project in the highly prospective Murchison Province of Western Australia.
Recently, on April 23rd, 2019, Musgrave Minerals released its quarterly activities and cashflow report for the three months ended March 31st, 2019.
The report suggests that at the Cue Project, the total (indicated and inferred) gold resources are now at 4.83Mt @ 2.84g/t Au for 441koz Au.
On March 27th, 2019, further assay results from the current regional scout aircore drilling program at Lake Austin North identified a new high-grade, high priority basement target of 5m @ 14.8g/t Au (19MOAC036) from 135m down hole including 1m @ 65.4g/t Au from 136m at the newly named D-zone.
Drilling is underway at A-Zone with 12 diamond holes completed for >3,540 metre (around 80% complete to date) and the system is open in all directions. A number of scissor holes have been completed to confirm the geometry of the potential mineralised system. The company is progressing with the drill to definitely measure the scope of the gold discovery beneath the Salt Lake at Lake Austin North. Further assays results are expected to be released in May 2019.
Musgrave has also been issued with a licence under the Rights in Water and Irrigation Act for M21/106 and M21/107 which host the Lena and Break of Day gold deposits. Besides, Musgrave also holds tenements in the Musgrave Province and the Corunna Project in the Gawler Range region of South Australia.
During the quarter, Musgrave Minerals entered into an option agreement to obtain 100% interest over the non-alluvial gold rights to the Cue region’s Mainland Project. In addition, a binding term sheet was implemented during the period, with Cyprium Australia Pty Ltd, including an option, earn-in and joint venture for the non-gold rights over Cue Project’s northern tenements. Accordingly, Musgrave would retain the gold rights to the tenure.
The operating activities generated cash outflows of around AUD 2.08 million arising from payments for exploration and evaluation (AUD 1.94 million), staff costs (AUD 49K) and other corporate costs (AUD 114K). Further, the investing activities added approximately AUD 148K to the net cash outflows due to payments to acquire property, plant and equipment (AUD 23K) and tenements (AUD 125K). No financing activities were undertaken during the period. At the end of the concerned period, Musgrave Minerals had cash and cash equivalents of AUD 5.15 million, which is lower than the cash of AUD 7.39 million as of December 31st, 2018.
For the half-year ended December 31st, 2018, Musgrave Minerals reported a loss of AUD 1.07 million. During the six months, it also raised around AUD 5.5 million to progress with the gold drilling at Lake Austin via an oversubscribed placement of 59,782,609 shares to institutional, professional, corporate and sophisticated investors.
To date, Musgrave has a market valuation of ~ AUD 24.37 million. At the time of trading on Tuesday, April 23rd, 2019 at 01:33 PM AEST, the MGV stock price is trending at AUD 0.064, up 1.59%.
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