Evolution Mining and Musgrave Minerals have again struck high-grade gold within their shared ground, further demonstrating the potential at the West Island prospect in WA’s Murchison region.  

Diamond drilling continues to confirm that the West Island prospect is underpinned by multiple stacked, narrow high-grade intercepts within a lower grade envelope along the 1.6km mineralised trend.

Evolution Mining (ASX:EVN) and Musgrave Minerals (ASX:MGV) have reported significant gold hits of 11.5m at 8.71 grams per tonne (g/t) from 235.5m, including 1m at a very high-grade 66g/t from 238m; 1m at 44.5g/t from 87m; 7m at 5.16g/t from 393m; 5.5m at 4.16g/t from 349.5m; 5m at 4.82g/t from 124m and 12.7m at 3.6g/t from 329m.

Drilling at West Island was targeting the key mineralised gold lodes to determine the scale of the system.

“These are another set of good results from West Island and continue to define the scope of the basement gold mineralisation,” Musgrave managing director Rob Waugh told investors today.

It has taken Evolution just over three years to earn its 75% stake in the Cue joint venture after spending the full $18m exploration budget well before the end of the five-year agreement.

The pair have now formed an unincorporated joint venture, with Evolution as the major partner, operator of the JV and manager of the ongoing exploration.

“The joint venture committee will meet in February to approve the ongoing exploration program for H1 CY2023,” Waugh explained.

Musgrave has the right to contribute to ongoing exploration pro-rata to maintain its 25% interest following approval of a proposed budget or the company can elect to dilute.

The JV, which is primarily focused on Lake Austin, excludes all of Musgrave’s 100% owned resources at the Lena, Break of Day, White Heat-Mosaic and Big Sky deposits, and the Mainland option area.

A data review is currently underway and a program and budget for ongoing exploration is being prepared by Evolution for consideration by the JV committee.

Share price upside

Heading into 2023, Musgrave shrugged off its 52-week low of 19c to again start heading north.

Following news that Evolution had earned its 75% stake, shares edged up to 24c. And while they have come back slightly, Argonaut sees plenty of upside in the stock, with the broker recently raising its share price target to 40c.

This is roughly 86% above where MGV shares are currently sitting.

Musgrave Minerals (ASX:MGV) share price chart



Argonaut believes Musgrave makes a very attractive potential takeover target, especially given the calibre of the explorer’s JV partner and the fact the Cue project is in the same neighbourhood as fellow gold hunters Ramelius and Westgold Resources, who are both likely keeping their eyes peeled for good assets to expand their inventories.

Gold has started off strong in 2023 and his heading back up to the pivotal $US2,000-an-ounce mark. Market commentators are expecting the safe-haven metal to hit record highs this year as the US dials back its aggressive ratcheting up of interest rates.


This article was developed in collaboration with Musgrave Minerals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.