Musgrave Minerals (ASX:MGV) advancing well with optimism for further discoveries

Highlights

• Musgrave Minerals’ (ASX:MGV) Cue Gold Project is located in a well-endowed region.
• MGV is continuing pre-development works to deliver a Stage 1 PFS early in the March quarter of 2023, focusing on open pit mining.
• MGV is dedicated to identifying and testing new targets, increasing its resources and advancing towards development through exploration and technical studies.

Musgrave Minerals Limited (ASX:MGV) is a gold and base metal explorer and project developer. The company believes that it is uniquely positioned as its flagship Cue Gold Project indicates near-surface high-grade gold.

The project’s total mineral resources stand at 12.3mt @ 2.3g/t Au for 927koz Au (47% Indicated), which the company believes has further potential to grow with opportunity for additional discoveries.

Updated MRE delivers strength to the business

The Cue project is located in the well-endowed, gold-producing Murchison region in Western Australia. The project has continued to deliver fresh discoveries and has witnessed growth in its resource base through the outstanding success of MGV’s exploration programs.

MGV delivered a mineral resource estimate (MRE) for the project in May 2022, which comprises notable additions from the new White Heat-Mosaic and Big Sky deposits. Another high-grade deposit, Break of Day Trend, is projected to host 982kt @ 10.4g/t Au for 327koz of contained gold.

MGV believes that the updated MRE provides strength to the company’s economic modelling for the ongoing development studies for the project to define a pathway to production.

Ongoing works and PFS

MGV is continuing pre-development works with a goal to deliver a Stage 1 Pre-feasibility Study (PFS) in the early March quarter of 2023. The company’s focus through the studies will be on open pit mining and will be based on the May 2022 MRE. The subsequently advanced stage 2 of the PFS will be progressed by additional resource conversion and exploration, and resource expansion.

Source: MGV Presentation

MGV has witnessed continued exploration success at its Cue project and remains confident for further resource base growth further in the near term.

Drilling to date at White Heat and Big Sky has focussed on the top 100 to 160m. MGV believes that both these areas have a significant potential for contributing further to resource growth. Extensional and infill drilling programs are currently underway or have been recently completed.

Recent discoveries and progress at EVN JV

Amarillo and Waratah are the latest discoveries that are yet to be included in the MRE. Moreover, additional targets for follow-up are being continuously identified through regional drilling programs across MGV’s extensive land holding at Cue. This is aimed at identifying new resources to grow the already significant resource base.

Source: MGV Presentation

Under the ENV JV (Earn-in and Exploration Joint Venture with Evolution Mining Limited (ASX:EVN)), exploration has been continuing on Lake Austin, and several new gold lodes have been uncovered at West Island. Besides this, numerous highly prospective regional targets have also been identified that warrant additional drill testing.

EVN is the operator of the JV and is continuing a substantial basement drilling program.

Upcoming works of MGV

MGV has finalised a sustainability review to identify key focus areas for further incorporating ESG considerations into its decision-making process. The company looks to utilise the results throughout the business as it continues to attain exploration success and progress its vision of developing a profitable gold mining business at the Cue project.

Source: MGV Presentation

The company shares a strong commitment to advancing its Cue Project and expanding the project by uncovering and testing new targets, enhancing its resources and advancing towards development via exploration and technical studies.

MGV stock was noted at AU$0.220 on 09 November 2022.