Musgrave Minerals Secures Additional Gold Tenure At Cue Gold Project

Musgrave Minerals Limited (ASX:MGV) is based in West Perth and engaged in the exploration and development of gold and base metals in Australia. Besides, it also mines for silver, lead, copper, nickel, and zinc. As of late, the company’s primary focus lies in the Cue Project, hosting advanced gold and copper deposits, situated in the Murchison Province of Western Australia.

Recently, on March 6th, 2019, the company announced to have entered into an Option Agreement to acquire the non-alluvial gold rights to the Mainland Project, located within the boundaries of the Company’s Cue Gold Project in Western Australia’s Murchison goldfields. It covers the northern extension of the shear corridor that hosts Musgrave’s Break of Day/Lena gold deposits adding another 4 km of prospective strike in its basket.

The Mainland Project was first utilised for alluvial gold production followed by historical high-grade basement gold production. The project has undergone limited basement drilling and modern exploration as it was held mainly by various prospectors focussed on alluvial mining for many years.

Besides, the project comprises a group of seven contiguous prospecting licenses covering an area of ~ 837 hectares, delivering on the Company’s strategy to expand and secure additional priority gold tenure in the district.

At the end of February 2019, the first batch of results from the current regional aircore drilling program was released for the area directly west of Lake Austin North, with two new basement drill targets (D-Zone and E-Zone) discovered. The drilling has returned encouraging thick intervals of significant gold mineralisation hosted in Archaean regolith (weathered basement rock). The system is open in all directions, and the ongoing regional aircore program is almost 55% complete (with 61 drill holes for 8,065 m) to date. The basement drill testing of these targets is expected to commence in the next quarter.

Prior to this, Musgrave Minerals executed a Binding Term Sheet with Cyprium Australia Pty Ltd regarding an option, earn-in and joint venture for the non-gold rights over the northern tenements of the Cue Project, which hosts the Hollandaire copper deposit and multiple base metal targets that require follow-up drill testing.

The company continues to tap into opportunities to grow its resource inventory. The last quarter ended December 31st, 2018, proved to be quite significant with great progress in exploration achieved by the company. At the end of the period, Musgrave held total cash and cash equivalents of ~AUD 7.4 million. There were cash outflows from operating activities of around ~ AUD 1.76 million mainly resulting from payments for evaluation and exploration along with corporate and administration costs. No investing activities were undertaken as such. The financing activities extensively contributed to cash inflows of around AUD 5.16 million on account of the proceeds from issuing of shares. For the next quarter, the company estimates cash outflows of ~ AUD 2.11 million.

Musgrave has a market cap of AUD 26.69 million with ~ 386.78 million outstanding shares. At the close of trading on Wednesday, March 6^th, 2019, the MGV stock price was trending at AUD 0.071, up 2.899%, indicating an intra-day gain of AUD 0.002.

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