Investors are well and truly backing the Musgrave Minerals story, with institutional and sophisticated investors adding $8m to the gold explorer’s coffers to give it the fire power it needs to boost the resource further and complete development studies at its Cue project.  

Musgrave Minerals’ (ASX:MGV) revealed today it had received firm commitments of $8m via the strongly supported placement and was targeting a further $2m in a share purchase plan to existing shareholders.

This will be more than enough cash to allow the company to complete the stage one pre-feasibility work, continue development studies and work towards mining permitting and approvals, convert more of the inferred resources into higher confidence indicated resources, and undertake ~30,000m of drilling to test new targets and pursue further resource growth.

The placement and share purchase plan, which will propel Musgrave’s cash reserves to $15m, are both priced at 20c per share.

“The progression of development studies, a systematic de-risking of the project and pursuing resource growth can ensure we unlock the inherent value of the project as a strategic asset and create value for shareholders,” managing director Rob Waugh said.

Musgrave has had a very productive 2022, continuing to deliver near-surface, high-grade gold as well as identifying new gold zones in drilling at the various prospects that make up the Cue gold project in Western Australia’s Murchison region.

Earlier this week, the company reported fresh drill results from the Big Sky deposit that showed numerous intercepts above the current resource grade as well as new high-grade targets outside the resource boundary.

Cue currently has a resource inventory of 12.3 million tonnes at 2.3 grams per tonne (g/t) for 927,000oz of contained gold.

That includes 982,000 tonnes at 10.4g/t for 327,000oz of contained gold along the Break of Day Trend – one of the highest-grade structures in Australia, and 9.8 million tonnes at 1.7g/t for 541,000oz of contained gold along the Moyagee Western Trend.

Musgrave is gearing up to deliver the results of the stage one pre-feasibility study in the first quarter of 2023, focusing on the technical and financial viability of the early years of the Cue project.

But the company is also continuing exploration and resource conversion drilling with the aim of extending the mine life beyond stage one.




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.