Musgrave Minerals Ltd (ASX: MGV) has signed an earn-in and exploration Joint Venture Agreement with Evolution Mining Ltd over the Lake Austin portion of the Cue Project in the Murchison District of Western Australia.
Evolution has also agreed to subscribe $1.5 million worth of Musgrave’s ordinary shares. On completion of the placement Musgrave will hold approximately $4.2 million in cash to help fund exploration at Cue.
Musgrave managing director Rob Waugh said Evolution is one of the largest gold producers on the ASX and a highly regarded explorer.
“The JV will fast track exploration and we look forward to leveraging Evolution’s extensive technical knowledge and financial resources with our in-house expertise to accelerate potential gold discoveries at Cue.
“This is a positive result for Musgrave and a strong endorsement of the Company’s projects and upside exploration potential.
“Musgrave will retain its interest in all areas hosting existing gold resources including Break of Day and Lena along with the Mainland option area which totals 172km2 of exploration tenure.
“We welcome Evolution to the share register and the additional funding will support Musgrave’s drilling and discovery efforts on the 100% retained ground.”
Evolution vice president Discovery and Business Development, Glen Masterman, said Cue is a quality project which has the ability to generate new drill results that extend previously identified mineralised zones.
“This agreement is consistent with Evolution’s strategy of focusing on orogenic and epithermal deposit styles that can create value through future discovery,” Mr Masterman said.
The Cue Project is prospective for large Archaean greenstone orogenic gold deposits and includes drill ready targets like Lake Austin North and untested continuations of the Lena/Break of Day and Cuddingwarra Shear Zones which host multi-million ounce gold deposits in the region.
At Lake Austin North Musgrave has identified significant basement gold mineralisation and a 3km long regolith gold anomaly together with a broad zone of more than 8km in combined strike of basement gold targets that require follow-up basement drill testing.
“We remain confident that Lake Austin has the potential for further discoveries and is host to a significant gold system,” Mr Masterman said.