Musgrave snaps up more hot gold ground in the Murchison
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With the continued success Musgrave Minerals has been having in Western Australia’s Murchison region, it makes perfect sense for the company to pick up more ground in the gold-rich exploration hot spot.
Musgrave Minerals’ (ASX:MGV) has struck a deal to acquire a prospective patch of ground within trucking distance of its flagship Cue gold project and directly along strike from Ramelius Resources’ (ASX:RMS) Mt Magnet operations. Payments are staged over four years to a total maximum acquisition cost of $500,000 for 100% ownership.
The company will expand its exploration footprint with the addition of the Mt Magnet South project, which covers the southern extension of the Hill 50 and Latecomer fault zones that are associated with the Hill 50, Galaxy and Morning Star gold deposits at Mt Magnet.
The acquisition is a key part of the company’s strategy to build a multi-million-ounce gold resource. Musgrave is on track to deliver a maiden resource for the Big Sky and White Heat-Mosaic prospects in late Q2 2022.
“This opportunity grows Musgrave’s landholding by adding further prospective ground in the region,” managing director Rob Waugh said.
“The new project area is directly along strike from Ramelius’ Mt Magnet operations and provides the opportunity for Musgrave to continue to utilise its exploration expertise to make further discoveries in the region.”
“The acquisition maintains our alignment with the strategy to grow the resource base at Cue in the near-term while generating a pipeline of longer-term projects and opportunities.”
Musgrave will settle the deal with Eastern Goldfields Exploration via an initial $100,000 cash payment and additional staged cash payments or share issues totalling $400,000. Eastern Goldfields Exploration will then receive a 1% net smelter royalty over any gold and rare earth elements produced from the Mt Magnet South project.
The nearly 300sq.km Mt Magnet South project, which is being funded from existing cash reserves, will almost double Musgrave’s landholding in the Murchison.
The project is an early stage, under-explored greenfield opportunity, in a good location with excellent nearby infrastructure, Musgrave said.
Musgrave’s objective at Mt Magnet South is to define, through discovery, a pipeline of additional high-grade gold resources that can be economically trucked the 40km north to a potential future operations hub at the Cue project.
Very limited historical drilling has been undertaken on the area and only limited, intermittent exploration was conducted under previous ownership between 1960 and 2020.
Musgrave has identified a number of initial structural and surface geochemical targets for drill testing in areas of limited previous exploration.
The company has begun to compile and digitise historical data and will undertake a regional gravity survey to enhance drill planning to test high-priority gold targets.
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.