Musgrave Minerals (ASX:MGV) prepares for further action after a busy March quarter

Highlights:

• Musgrave Minerals has completed resource drilling at Big Sky and White Heat Mosaic prospects in preparation for the resource update slated for May-June 2022.
• MGV’s key focus has been on exploration and resource drilling focused on growing the Cue Project resource base.
• MGV has inked a deal to acquire 100% interest in 297sqkm of tenure (Figure 2) south of Mt Magnet.

Gold explorer and developer Musgrave Minerals Limited (ASX:MGV) has published an update on the quarter ended 31 March 2022. The latest report from MGV offers an overview of the company’s financial activities while the it advanced on various activities across projects during the quarter.

The sale and purchase agreement signed between MGV’s wholly-owned subsidiary and Eastern Goldfields Exploration Pty Ltd was one of the key highlights during the quarter.

Source: MGV Announcement 29/04/22

RELATED READ: Musgrave Minerals (ASX:MGV) reports high-grade gold intersections at Cue JV Project

Let us look at how MGV has progressed during the March quarter.

Exploration activities

MGV’s exploration activities during the quarter includeded exploration, and resource drilling focused on growing the Cue Project resource base. MGV continued a significant RC drilling program to test and expand the Big Sky, Amarillo and White Heat-Mosaic prospects.

Moreover, an aircore drilling was also executed as a first pass across new target areas, while diamond drilling at Break of Day and Lena has commenced advancing resource conversion.

MGV believes that the exploration success through drilling continues to support the opportunity to expand the resource base via discovery following additional positive drilling results at Big Sky, White Heat-Mosaic and Amarillo.

RELATED READ: Musgrave Minerals (ASX:MGV) reports strong assay results from Big Sky, shares up 4%

Location plan showing Musgrave’s wholly owned projects (Source: MGV Announcement 29/04/22)  

MGV has planned an initial Mineral Resource Estimate, which is scheduled for White Heat-Mosaic in late May-early June 2022. Further drilling is currently being planned and will commence in May.

At Amarillo, additional follow-up drilling is scheduled to commence soon to define an initial maiden Mineral Resource Estimate for late 2022.

RELATED READ: Musgrave (ASX:MGV) to acquire 100% interest in Mt Magnet South Project

Sale and purchase agreement

Towards the end of the March quarter, MGV’s wholly-owned subsidiary, Musgrave Exploration Pty Ltd, inked a sale and purchase agreement with Eastern Goldfields Exploration Pty Ltd for the acquisition of a 100% interest in 297sqkm of tenure south of Mt Magnet.

The project area extends over the southern extensions of the Hill 50 and Latecomer faults that are related to the Hill 50, Galaxy and Morning Star gold deposits at Mt Magnet and has witnessed very little historical drilling.

Currently, compilation of historical data is underway along with digitisation, plotting and review to improve targeting. MGV has planned a regional gravity survey and the results have been integrated with current aeromagnetic data and geological and geochemical datasets. MGV believes that this will improve drill planning to test high-priority basement gold targets later in 2022.

RELATED READ: Musgrave Minerals (ASX:MGV) reports strong drill results at Amarillo, shares up 4%  

Financial stance and current engagements

MGV’s operations has not been significantly impacted due to COVID-19, and the Company has been maintaining its operations and developing its projects. MGV held nearly AU$13.2 million in cash at the end of the quarter, and the Company incurred a cash exploration expenditure of AU$3.6 million for the reporting period.

MGV’s current engagements include the following:

Source: MGV Announcement 02/05/2022

RELATED READ: Musgrave Minerals (ASX:MGV) intersects further high grade gold at Mosaic 

MGV’s investments

MGV’s investment includes 12.5 million shares held in Legend Mining Limited, valued at around AU$1.1 million based on Legend’s share price of AU$0.087 per share.

Further, MGV also holds 1,308,750 ordinary shares in Cyprium Metals Limited, which are presently valued at ~AU$0.2 million based on Cyprium’s share price of AU$0.16 per share.