Musgrave’s (ASX:MGV) JV partner Evolution satisfies earn-in requirements for Cue JV - Kalkine Media

Highlights:

• Musgrave Minerals’ (ASX:MGV) JV partner Evolution has hit the earn-in milestone under the Cue JV
• Completing the earn-in requirement leads to an unincorporated JV with Musgrave holding 25% interest and Evolution holding 75% interest
• A JV committee is on the cards that will meet early Q1 to set exploration plans

In a significant update, Musgrave Minerals Limited (ASX:MGV) has reported the latest development concerning the Cue Project Earn-in and Exploration Joint Venture Agreement (Cue JV) with Evolution Mining Limited.

Evolution Mining has met the earn-in condition under the agreement, thus moving to a 75% interest in the Cue JV.

As Evolution met the AU$18 million expenditure requirement, an unincorporated joint venture has been formed with Evolution holding 75% and Musgrave holding the remaining 25% interest.

Evolution will continue as the operator of the joint venture and manager of the ongoing exploration. Meanwhile, Musgrave holds the right to contribute to ongoing exploration costs on a pro-rata basis, thus maintaining its 25% interest or can elect to dilute. 

Inside Cue Joint Venture

Musgrave’s Cue JV in Western Australia’s Murchison district with Evolution spreads over a large area of Lake Austin and surrounds on the Cue project.

The Cue JV with Evolution does not cover the company’s wholly owned Mineral Resources at Cue (Lena, Break of Day, White Heat-Mosaic and Big Sky deposits) and the Mainland option area.

The West Island prospect on the Cue JV ground has delivered significant drill results including

• 22CUDD012: 6.0m @ 6.4g/t gold from 385.5m
• 22CUDD016: 1.0m @ 74.2g/t gold from 410.0m
• 22CUDD008: 2.0m @ 66.0g/t gold from 438m
• 22CUDD007: 3.5m @ 16.2g/t gold from 366m
• 22CUDD001: 19m @ 4.4g/t gold from 282m
• 22CUDD002: 12m @ 4.9g/t gold from 322m
• 21MODD025: 4.26m @ 41.5g/t gold from 160.74m
• 21MODD006: 3m @ 10.6g/t gold from 247.5m
• 21MODD001: 5m @ 5.5g/t gold from 276m

Ongoing activities of the JV

• A JV committee is expected to be established and meet in early Q1 CY2023.
• As per the update, a data review is currently in progress. Also, Evolution is working on a program and budget for ongoing exploration that is planned to be put forward for consideration by the JV committee.
• Musgrave holds the right to contribute or dilute its stake once the committee has approved the program and budget.

Share price: MGV shares were trading at AU$0.215 midday on 12 January 2023. Its market capitalisation stood at AU$127.10 million.