Musgrave Minerals’ Shares Flat Despite 33% Increase in Resource
The Musgrave Minerals Ltd [ASX:MGV] share price hasn’t managed to shake the downward pressure it’s been under recently despite is recent resource upgrade.
Further high-grade gold drilling results from its ‘Break of Day’ project released yesterday also failed to push the MGV share price upwards.
At time of writing, MGV shares are down slightly by 2.80% to trade at 52 cents per share.
The end of a stellar run?
The MGV share price has taken a bit of a battering since reaching its 52-week high of 83 cents in August.
This could be due to the gold price leveling out after a mammoth run-up in the months from March–August.
But despite the gold price ticking back up over the past couple of days, the MGV share price has continued to slide.
So, let’s take a look at what’s happened.
Yesterday, MGV announced results from the White Light lode at its Break of Day project.
Results were decent, showing some small interval, high-grade gold intercepts.
All drill holes were outside of the existing resource estimate, meaning they will be incorporated into the latest estimate expected in late October.
Which could explain the lack of movement in the share price.
Today, at the Hollandaire Copper-Gold joint venture with Cyprium Metals Ltd [ASX:CYM], it was announced that the copper resource has increased by 33% to 51,500 tonnes contained copper.
A further 28,800 ounces of gold and 574,000 ounces of silver were also added in the updated resource.
So, you might be scratching your head over MGV’s share price today.
It is a little confusing.
CYM’s share price, at time of writing, is 12.90% higher to trade at 17.5 cents per share.
It’s about the gold
The Hollandaire Copper-Gold mineral resource forms part of the Cue Copper-Gold Project.
Under the joint venture, CYM has rights to 80% of the project’s copper, gold and silver mineralisation.
Whereas MGV has a 100% interest where a deposits mineralisation is primarily gold and is not associated with a copper-gold deposit.
Meaning, very little of today’s resource upgrade is attributable to MGV, thus the lack of share price movement.
In my opinion, the MGV share price movement we saw earlier in the year could have been overpriced thanks to the massive surge in the gold price.
And now the price is undergoing correction before the resource upgrade expected next month.
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For The Daily Reckoning Australia