Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) has entered into a sale and purchase agreement with Eastern Goldfields Exploration Pty Ltd to acquire a 100% interest in tenements that comprise the Mt Magnet South Project, 40 kilometres from the flagship Cue Gold Project in Western Australia's Murchison district.
The company's strategy is to identify and secure additional early-stage gold exploration ground in the region to build on the company’s success at Cue and maintain a long-term pipeline of opportunities.
Notably, the acquisition complements the Cue Gold Project as it consolidates Musgrave's position in the region.
Looking ahead, Musgrave is planning to kick off drilling at Mt Magnet South after the consolidation of historical exploration data and completion of a regional gravity survey.
“Further prospective ground”
Musgrave managing director Rob Waugh said: “This opportunity grows Musgrave’s landholding by adding further prospective ground in the region.
“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.”
About Mt Magnet South
Mt Magnet South Project comprises a group of 19 semi-contiguous prospecting and exploration licences covering an area of about 294 square kilometres almost doubling Musgrave’s landholding in the Murchison.
The project covers the southern extension of the Hill 50 and Latecomer fault zones associated with the Hill 50, Galaxy and Morning Star gold deposits at Mt Magnet
It is an early stage, under-explored greenfield opportunity, in a good location with excellent nearby infrastructure.
Very limited historical drilling has been undertaken in the area and only limited intermittent exploration was conducted under prior companies’ ownership from 1960 to 2020.
Synergy with Cue Project
The Mt Magnet South Project provides an additional opportunity for Musgrave to apply the significant exploration learnings from its discovery success 40 kilometres to the north at the Cue Project and make further discoveries in the Murchison.
Future discoveries have the potential to add to the company’s growing resource base in the region thus enhancing the value of the Cue Gold Project.
Mt Magnet South project location plan and Cue tenure.
Next steps
Mt Magnet South’s historical data is being compiled, digitised, plotted and reviewed in detail to enhance targeting.
Subsequently, a regional gravity survey will be undertaken and integrated with existing aeromagnetic data, and geological and geochemical datasets.
This will enhance drill planning to test high-priority basement gold targets.
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 40 kilometres north to a potential future operations hub at the mainstay Cue Gold Project.
Looking ahead, the company aims to utilise its regional base and exploration strengths to deliver further success through exploration and discovery.