Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) welcomes joint venture partner Evolution Mining Ltd (ASX:EVN) satisfying its earn-in requirements to move to a 75% stake in the Cue Gold Project Joint Venture (JV).
Evolution needed to spend A$18 million to complete the earn-in and up its interest in the Murchison gold venture.
Crossing expenditure off the to-do list triggers an unincorporated joint venture, which will house Evolution’s 75% stake alongside Musgrave’s 25% interest.
Evolution remains the joint venture operator and will manage exploration from here on.
The story so far
In October 2019, Musgrave entered the Cue JV with Evolution over a large area of Lake Austin and surrounds on the company's Cue Project.
The JV with Evolution lies to the north of, and excludes, all of the company’s 100%-owned gold resources at Cue (including the Lena, Break of Day, White Heat-Mosaic and Big Sky deposits) and the Mainland option area.
Some significant drill results to date at the West Island prospect, housed on the Cue JV ground, include:
- 6 metres at 6.4 g/t gold from 385.5 metres;
- 1-metre at 74.2 g/t from 410 metres;
- 2 metres at 66 g/t from 438 metres;
- 3.5 metres at 16.2 g/t from 366 metres;
- 19 metres at 4.4 g/t from 282 metres;
- 12 metres at 4.9 g/t from 322 metres;
- 4.26 metres at 41.5 g/t from 160.74 metres;
- 3 metres at 10.6 g/t from 247.5 metres; and
- 5 metres at 5.5 g/t from 276 metres.
A joint venture committee is in the works — the group will meet early this quarter to set exploration plans.
Meanwhile, a data review is underway. Evolution is drafting a program and budget for ongoing exploration for the committee’s consideration.
Ultimately, Musgrave has the right to contribute or elect to dilute once the program and budget have been approved.