Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) continued to advance its Australian exploration projects in the September quarter as it moves toward becoming a gold producer, maintaining plentiful cash on hand to see it through the next financial year.
The company’s cornerstone project is the Cue Gold Project in the Murchison Province of Western Australia where it holds 100% of the key project tenure containing the existing gold resources.
Musgrave’s objective is to focus on increasing gold resources through exploration and discovery with the near-term goal of delivering a viable path to development.
Financial overview
Musgrave Minerals held A$19.3 million in cash at the end of the September 2021 quarter (down from A$20.9 million last quarter), a comfortable 13 quarters worth of cash-on-hand.
Cash exploration expenditure for the quarter was A$1.9 million, with a further A$393,000 in other expenses. The total amount paid to directors and their associates in the period was A$135,000 and includes salary, directors’ fees and superannuation.
Musgrave holds 12.5 million shares in Legend Mining Limited currently valued at approximately A$900,000 based on a Legend share price of A$0.075/share. Musgrave also holds 1,308,750 ordinary shares in Cyprium Metals Ltd (ASX:CYM) valued at approximately A$300,000 based on a Cyprium share price of A$0.21/share.
Exploration activities
Musgrave’s cornerstone Cue Project underwent a large, regional reverse circulation (RC) drilling program at the new Target 14 and Big Sky prospects, as well as extensional and infill drilling at the White Heat Prospect.
A total of 92 RC holes for approximately 11,973 metres of drilling was completed across multiple areas.
The company is awaiting more than 130 drill hole assay results, held up by significant turnaround delays experienced by the mining assay sector currently.
On Lake Austin, part of the Evolution Mining Ltd (ASX:EVN) joint venture (JV), aircore and diamond drilling programs are ongoing.
Strong aircore gold mineralisation was intersected in the weathered Archaean regolith below lake cover at West Island and has extended the regolith footprint at this prospect to over 1.6 kilometres of strike. Diamond drilling follow-up is underway.
The exploration upside for the project is high with follow-up drill programs already underway in the December quarter.
COVID-19 response
The pandemic is ongoing and while the company has not been significantly impacted to date, Musgrave says it is impractical to estimate the potential of future impacts.
The company is maintaining its operations and developing its projects while aiming to keep its employees, contractors and the communities in which it operates safe.
Ongoing activities
Musgrave tenements:
- Infill resource definition RC drilling at the Big Sky prospect is continuing. Initial assay results from this drilling are expected in November with the aim of delivering a maiden mineral resource estimate in Q2 2022;
- Follow-up RC drilling to define the basement source of gold anomalism at Target 14 is scheduled to recommence in November;
- One-metre resamples from six-metre composites of approximately 60 RC drill holes from Big Sky and Target 14 are awaited. Results are expected in November;
- Follow-up extensional resource definition RC drilling at the White Heat prospect is ongoing, with further assays expected in late November; and
- Works to progress the pre-feasibility level studies at Break of Day and Lena are ongoing with mining studies, environmental monitoring and assessments, metallurgical, processing, design and geotechnical test work continuing.
Evolution JV:
- Follow-up diamond drilling on Lake Austin is continuing. Diamond drilling to test the basement beneath the new regolith gold mineralisation identified in recent aircore drilling at West Island has commenced;
- Further assay results for diamond drill holes at West Island are pending; and
- The current aircore drilling program on Lake Austin is scheduled to be completed in late November. Assay results are pending for a further 100 aircore drill holes in the current program.