- Musgrave Minerals has signed an $18 million joint venture agreement with Evolution Mining for the Lake Austin Area of the Cue Project
- Evolution can earn a 75 per cent interest in Lake Austin by sole funding $18 million over five years
- Musgrave will keep its interest in areas hosting known gold resources, including Break of Day, Lena and the Mainland area
- Evolution has agreed to subscribe to 18.5 million ordinary shares in Musgrave through a share placement at a price of $0.0807 per share
Musgrave Minerals has signed an $18 million joint venture agreement with Evolution Mining for the Lake Austin Area of the Cue Project.
Evolution can earn a 75 per cent interest in Lake Austin by sole funding $18 million over five years, with a minimum expenditure of $4 million completed in the first two years.
Musgrave will keep its interest in areas hosting known gold resources, including Break of Day, Lena and the Mainland area.
If Evolution does not spend the entire $18 million within 5 years, Musgrave will retain 100 per cent ownership of the area.
The Cue Project is located in the Murchison district of Western Australia and is prospective for large Archaean greenstone orogenic gold deposits.
The project 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.
North of Lake Austin, significant basement gold mineralisation has been identified.
“We remain confident that Lake Austin has the potential for further discoveries and is host to a significant gold system,” the company stated.
As part of the agreement, Evolution has agreed to subscribe to 18.5 million ordinary shares in Musgrave through a share placement at a price of $0.0807 per share.
Musgrave Managing Director Rob Waugh said he is very pleased to partner with Evolution, one of the largest gold producers on the ASX.
“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,” he said.
“This is a positive result for Musgrave and a strong endorsement of the Company’s projects and upside exploration potential.”
Glen Masterman, Evolution Vice President of the Discovery and Business Development, said he is excited to be partnering with Musgrave.
“Cue is a quality project which has the ability to generate new drill results that
extend previously identified mineralised zones,” he said.
“This agreement is consistent with Evolution’s strategy of focusing on orogenic and epithermal deposit styles that can create value through future discovery.”
Musgrave has begun a drilling program at Lena with results due at the end of the month.
Musgrave and Evolution will work towards commencing a new drilling program at Lake Austin North and other lake targets where there is significant evidence of a potential large gold system.