Musgrave Minerals well Positioned for Potentially Highly Profitable Gold Development

October 17, 2019 08:08 PM AEDT | By Team Kalkine Media
 Musgrave Minerals well Positioned for Potentially Highly Profitable Gold Development

Gold and base metal explorer Musgrave Minerals Limited (ASX: MGV) is currently focussed on growing its gold resources at its Cue Project, located in the well-endowed, gold-producing Murchison region of Western Australia. The project is believed to have excellent infrastructure with multiple operating gold mills in the district. The project has a total mineral resource of over 440koz Au (gold) with huge upside exploration including the potential to make further new gold discoveries with +28km of shear zone.

Recently at the Brisbane resource Round up event, the company provided an exploration update on its Cue Gold Project.

Cue Project Location on Map (Source: Company Reports)

Musgrave believes that it has the right ingredients for potentially highly profitable gold development. These ingredients include:

  • High-grade gold
  • Infrastructure
  • Excellent met work
  • Granted Mining Lease
  • Exploration upside
Earn-in Joint venture with Evolution Mining

In the update, the company has reminded about the $18 million Earn-in Joint venture between Musgrave and Evolution Mining Ltd centered on the Lake Austin Area of the Cue project. The company believes that JV agreement is reinforcing confidence in lake gold potential.

Agreement Highlights:

  • EVN will fund $18 million over five years to earn 75%;
  • Minimum spend of $4 million within the first 2 years;
  • MGV to manage during the initial earn-in period;
  • Musgrave will retain 100% of all known gold resources and approximately 11km of the prospective shear zone (including all near surface – non covered zones);
  • EVN has subscribed for $1.5 million of shares at $0.08/share.

In the update, the company also shed light on Break of Day & Lena gold deposits, both part of Cue Gold Project.

Break of Day JORC Resource:

  • 868kt @ 7.15g/t Au for 199koz Au (56% indicated)
  • >800m of the combined strike of high-grade shoots
  • Resource drilling only to ~250m
  • Amenable to open pit and underground mining
  • Open down plunge and along strike

Lena JORC Resource:

  • 682Mt @ 1.77g/t Au for 153koz Au (46% indicated)
  • Near-surface gold in multiple lodes over 1.6 km strike
  • Resource only calculated for top 160m
  • Open down plunge
Upsides of Break of Day

As announced on 9 October 2019, Musgrave has identified High-grade gold at Break of Day with mineralisation extending to the south with drilling intersecting: 3m @ 13.9g/t Au from 53m down-hole (19MORC017) including 2m @ 20.0g/t Au from 53m down-hole.

The Break of Day deposit has a JORC (Joint Ore Reserves Committee) 2012 Resource of 868Kt @ 7.15g/t Au (gold) for 199Koz Au and has a significant potential at depth and along strike to grow improve the existing resource. The company has planned further drilling at this deposit for early November to improve resource.

Lena Growth Potential
  • Multiple high-grade hits outside current resource boundary
  • 500m long high-grade shoot – awaiting drill results
  • Significant potential to grow resource – Open down plunge

The company has reported excellent gold recoveries from metallurgical test work at Break of Day and Lena:

  • Total 96-97% recoverable gold from conventional gravity and cyanide leach processing
  • Very high gravity recoveries (73-84%) - fresh rock
  • Very high in comparison to typical Yilgarn gold ores
  • 34%-55% gravity recovery from oxide and transitional material at Lena

The company is waiting for further results for Lena extensional drilling.

Forward Work plan of Musgrave Minerals

For the fourth quarter of 2019, the company has planned various activities which includes Soil geochemical & geophysical surveys; Diamond Drilling - Lena – Assays pending; RC Drilling – Break of Day, Lena and Mainland and Development Studies. Many of these activities will be continued to the first quarter of 2020. Additionally, the company will undertake Aircore Drilling (New targets - Mainland) in Q1 FY10.

Scheduled Work Plan (Source: Company Reports)

A Quick look at the Board and Management

  • Graham Ascough (Non-Executive Chairman)- Successful geoscientist with >25 years exploration and corporate experience (Ex Falconbridge)
  • Robert Waugh (Managing Director)- Geologist with over 25 years of exploration experience (Ex WMC & BHP). Strong discovery track record.
  • Kelly Ross (Non-Executive Director) - Accountant and Chartered Secretary with over 25 years’ experience in the mining industry;
  • John Percival (Non-Executive Director) - Over 25 years’ experience in broking, investment and merchant banking.

As at 9 October 2019, the company had a cash balance of ~4.1 million. At market close on 17 October 2019, MGV stock ended at a price of $0.079 with a market capitalisation of $31.21 million.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.