Gold Price Surges; How is Musgrave Minerals Placed?

Gold prices in Australia are reaching record high levels amid the escalating geo-political tensions between US and Iran. Many analysts believe that further upward biasness for gold is yet to occur in the near future.

Political and war tensions between the US and Iran have set panic among equity markets all over the world. Consequently, Gold is gaining traction as a safe haven providing significant impetus to Gold prices.

Gold Price Summary

At the time of writing, Gold Spot (XAU/USD) Price traded at US$1558.0289 (15:29 (UTC+11)), breaking its resistance (52-week high price) of US$1557.25, underpinned by war tensions between US and Iran. This feud in the middle east is expected to escalate further, which may support gold price rise in the time to come. A fresh gold price upside rally is expected to help the gold producers worldwide.

Gold Price From 2015 (Source: Thomson Reuters)

We can also observe flag breakout on weekly chart.

What does this mean for MGV?

There is a speculation that emerging biasness for gold could benefit gold explorers and producers in the short to medium run.

Mineral exploration company Musgrave Minerals (ASX: MGV) is an emerging gold explorer focussed on the exploration of its cornerstone project - the Cue Project. Through exploration drilling programs, the company is currently trying to increase its gold resources at the Project. The drilling results at Break of Day, Lena, Mainland, and Evolution JV at Lake Austin North so far have come in favour for MGV.

Last year was a year of several milestones for MGV, as it made significant progress in the exploration of Cue Gold Project.

2019 Flashback

  • In February 2019, MGV executed a Binding Term Sheet with Cyprium Australia Pty Ltd regarding an option, earn-in and joint venture on the non-gold rights over the northern tenements at the Cue Project in Western Australia’s Murchison region;
  • In March 2019, the company entered into an option agreement to acquire 100% of the non-alluvial gold rights to the Mainland Project in the Cue region;
  • In July 2019, the company commenced drilling at newly acquired Mainland Prospect;
  • In August 2019, high-Grade Gold was intersected at Lena and Mainland;
  • In September 2019, Musgrave entered into an Earn-In and Joint Venture Exploration Agreement with Evolution Mining Limited (ASX: EVN) over a select area of Lake Austin and surrounds (JV Area) of the Cue Project in the Murchison District of Western Australia;
  • In September 2019, high-grade gold was intersected at Lena below existing resource;
  • In October 2019, high-grade gold was intersected at Break of Day and ultra-high-grade rock-chip sample from Mainland;
  • In November 2019, high-grade gold was intersected in drilling at Mainland;
  • In December 2019, new high-grade ‘link-lode’ was intersected at Break of Day, opening possibilities and opportunities to discover additional lodes and grow the Break of Day resource.

MGV’s 2020 Roadmap

Going into 2020, the company will maintain its focus on significantly growing its gold resources through extensional and greenfield exploration drilling. In the first quarter of 2020, Evolution and Musgrave intend to conduct a large aircore drilling program. During the quarter, the company also expects to deliver a Lena resource update. In February 2020, the assay results from Diamond drilling on the Evolution JV at Lake Austin North are expected.

Considering the positive gold scenario, Musgrave’s incredible exploration drive through 2019 and its current drilling plans, it can be said that Musgrave is well placed to gain from the rising gold prices scenario.

At market close on 9 January 2020, MGV stock was trading at a price of $0.088 on ASX.


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