Will the Musgrave Minerals Share Price Break $1 Before Year’s End?
It’s been a great few months for the Musgrave Minerals Ltd [ASX:MGV] share price, with their Cue Gold Project continuing to produce high-grade finds.
With the gold price continuing to hit fresh highs, the MGV share price has risen along with it.
MGV announced this morning it has found some seriously high-grade gold at the Starlight gold discovery.
If the explorer continues to produce similar results, we could see the share price come close to the $1 mark before the year’s out.
At time of writing, MGV shares are up 8.5 cents or 12.32%, trading at 77.5 cents per share.
MGV shares are up 868.76% over the last 12 months.
Musgrave hits bonanza grade gold
When we last looked at MGV, I mentioned we could be in for a resource upgrade by the end of the third quarter.
With drilling now 90% complete, the latest drilling results might be another step towards growing the gold resource.
Some of the highlights include:
- 14m at 191.1 grams of gold per tonne from 4m including 3m at 884.7g/t from 5m including 1m at 2,518.8g/t from 6m.
- 22m at 5.8g/t from 15m including 3m at 26.2g/t from 31m.
- 5m at 14.3g/t from 90m.
No, none of these figures are typos.
MGV’s exploration has continued to demonstrate the high-grade potential of the Starlight and White Light gold discoveries.
The current resource estimate for the Cue Gold Project is around 6.45Mt at 3.0g/t for 613,000 ounces of gold.
However, this estimate doesn’t include any results from the Starlight and White Light discoveries.
Source: Musgrave Minerals
Considering the quality of the grades found at Starlight and White Light, there could be a substantial upgrade in the resource.
However, there are a couple of things to keep in mind.
Source: Musgrave Minerals
See the cross section above.
Last update we got from MGV showed mineralisation to the west as still open.
That appears not to be the case now.
Both diamond and reverse-circulation drilling returned no significant intercept (NSI).
Not a huge deal, but just know they could now be hitting the limits of the resource.
Although, depth extensions seem to be finding more gold and there is potential towards the east.
Is $1 a realistic target?
With the share price hovering around the 80 cents mark today, $1 is a possibility.
It may depend on a few things.
If there is a sizable resource update, expected by end of September, then it could really take off.
We’ll know what lies further below the surface at Starlight in a couple of weeks, with diamond drilling results expected.
Additional drilling at White Light is ongoing.
Since we haven’t heard as much from White Light as we have from Starlight, these results could make or break the current excitement around the MGV share price.
There are some big moves happening in the world of gold at the moment. With the breakout gold price, our resident gold expert Shae Russell has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes in Aussie gold stock prices. If you want to learn more, download your free report here.
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