Musgrave Minerals’ JV Gold Project with Cyprium Metals Takes First Steps
Musgrave Minerals Ltd’s [ASX:MGV] share price is up slightly today thanks to the granting of a mining lease at its joint venture project.
Alongside with JV partner microcap base metals explorer Cyprium Metals Ltd [ASX:CYM], the Hollandaire copper project has been given the go ahead.
At time of writing MGV’s share price is 2 cents or 3.54% higher to trade at 58.5 cents per share.
CYM shares have received an even bigger boost.
The share price is up 20% at time of writing to 18 cents per share.
In a statement released by CYM today, the company said it had been granted a mining lease at its Hollandaire copper project in WA.
With the new mining lease, the Hollandaire copper project will now become the Cue copper project.
The news marks big milestones for both companies.
CYM has an 80% interest in the joint venture for the non-gold rights, with MGV holding a 20% free carried interest.
Though, MGV retains 100% in the gold rights.
CYM Executive Director Barry Cahill commented:
‘We are pleased that the mining lease has been granted to remove any uncertainty over the timing of when mining operations could potentially commence, following the successful completion of favourable Cue Copper Project scoping and feasibility studies.’
The project was discovered by Silver Lake Resources Ltd [ASX:SLR] in 2011 and hosts a JORC (2004) compliant total mineral resource base of 2.0Mt at 1.9% copper for 38,800t of contained copper and 2.7Mt at 5.8g/t silver for approximately 495,000oz contained silver.
There is also a small gold resource of 0.52Mt at 1.35g/t gold for 22,500oz contained gold.
Feasibility studies can take some time; so don’t be expecting gold production in the immediate future.
However, with development in sight, it does set up MGV nicely to continue growing its Cue gold project.
MGV share price on watch
When we last visited the MGV share price, we discussed what it would take for it to reach the $1 mark.
But since that time the share price has tapered off after hitting a 52-week high of 83 cents per share.
MGV isn’t the only gold explorer to see its share price wane recently.
Here are the share prices of three comparable gold explorers.
Rox Resources Ltd [ASX:RXL], Great Southern Mining Ltd [ASX:GSN], and Metalicity Ltd [ASX:MCT].
Notice they had big run-ups over June and July.
But have since cooled come August.
The price of gold is beginning to level out after a stellar run.
Which could be weighing on these explorers share prices.
But with a shaky global economy, the gold price is still looking strong.
If you’re looking to invest in ASX-listed gold stocks, then now could be the time, despite its big run-up. Our resident gold expert Shae Russell is tipping Australia to become the new gold epicentre. Meaning we could knock China off the top spot. In her free report, Shae details why this could mean big spikes for Aussie gold stocks and what to look out for. If you’re interested, get your free copy here.
For The Daily Reckoning Australia