THE BOURSE WHISPERER: Musgrave Minerals (ASX: MGV) has moved to 60 per cent-ownership of the Cue project in the Murchison region of Western Australia.
Musgrave qualified for the milestone by completing Stage 1 of the Cue froject Farm‐ In and Joint Venture Agreement with Silver Lake Resources (ASX: SLR) and Cue Minerals Pty Ltd (CMPL), a wholly-owned subsidiary of SLR.
Musgrave Minerals met the set requirement of having spent $1,800,000 on exploration, having already met the minimum expenditure figure of $900,000, the company’s total expenditure sits at $2,700,000.
Musgrave will now form an unincorporated joint venture with SLR and CMPL over the project tenements, with Musgrave as Manager of the joint venture.
Musgrave indicated it has elected to proceed to Stage 2 of the Cue Joint Venture whereby it can increase its interest to 80 per cent by spending an additional $1,800,000 on exploration within two years.
To that end, further drilling at Break of Day and Lena is scheduled to commence during the first week of March towards the stated objective to increase high-grade gold resources to underpin studies towards development at Cue.
“Musgrave is pleased to have completed the initial 60 per cent-ownership interest in the Cue project,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.
“This is an exciting time for Musgrave following the exceptional drilling results received at Break of Day and Lena as we push towards delivering on our objectives.
“The company continues to have an excellent relationship with Silver Lake Resources Limited and looks forward to working with it to further develop the Cue project.”