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MGV - Musgrave Minerals

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Miner

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Hi All

Mushgrave Minerals listed in ASX following an IPO at 25 cents is now running at 18 cents.

I also saw there is a name alike scrip in Canada with a change in one vowel (a replaced with o). That is puzzling for me to learn how could so much of similarity or was there shortage of words to differentiate.
 

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  • MUSGROVE CANADA.pdf
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Any likeness is surely coincidental Miner. They are named Musgrave Minerals as they are concentrating on exploring in the Musgrave Ranges.

MGV are headed up by Rob Waugh. He was the geo that discovered the Nebo and Babel deposits for WMC in 2000. He knows the area well and is very good at dealing with the Aboriginal land holders in the area.
 
MC - $7.5m
SP - 6.5c
Shares - 121m
Options - 16m
Cash - $13.6m

Top 10 Shareholders
% Holding
Mithril Resources Investments Pty Ltd 7.7
Independence Group NL 7.5
Goldsearch Ltd 7.2
Acorn Capital Ltd 6.4
Barrick (Australia Pacific) Limited 5.0
Integra Mining Limited 4.6
JP Morgan Nominees Australia Ltd CI A/C 4.4
Argonaut Resources NL 2.1
Mr WD Goodfellow 1.3
Mr SH Koppe 1.2
TOTAL - 47.9%

That cash position : MC ratio is incredible. There is something here that troubles me.
Having just flipped through their last company presentation, (below) there is nothing there that tells me this is a compelling buy. Being greenfield and with the information not being overly scintillating, my spidey senses are telling me to avoid.
http://www.asx.com.au/asxpdf/20120502/pdf/4260tl1xqx94zx.pdf
MGV have alot of money to throw at an exploration program, and you don't have to find anything remotely remarkable to get some appreciation in MGV's SP, given the low it is at. MGV may well have bottomed out.
Whether they find anything or not, I feel there is a moderately high risk investment that could be made for a chance at a rising SP based on speculation. This is where I feel the potential for this company is.
In a nut shell a buy would be based on SP:cash:MC, not what I think they have in the ground.

I won't take a piece of MGV, but will be happy to be proven wrong.
Will watch and update.
 

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  • mgv_ax24jan12_to_31jul12.png
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Not a lot has changed since my assessment of MGV 9 months ago. They are $3.2m poorer, but have an increase in MC of $1.9m

Although the MC:Cash ratio and low liquidity remain compelling factors, there isn't a speculative push up of SP or buyer volume that sometimes accompanies good drill results.
I am still unable to consider this a buy for these reasons.

MC - $9.4m
SP - 7.8c
Shares - 121m
Options - 15m (unlisted)
Cash - $10.3m

TRADING HALT REQUEST
MGV intends to make an announcement pending the assessment of drilling results.
The Company further requests that the trading halt be granted until the Company is able to make an announcement in relation to the drilling results, which is expected to be released prior to the opening of market trade on 9 April 2013.

Trading halt most likely relates to announcement below.

Musgrave Commences Drilling on New Nickel-Copper Targets
• Vacuum drilling over new nickel-copper targets has commenced at Deering Hills
• 200 holes planned for ~3,000m over six targets
 
Musgrave Minerals up 10.45% today to 7.4c after announcing that a 30m zone of high-grade gold has been intersected at the company's Break of Day project. Results look encouraging:

Further assays from three drill holes at Break of Day are expected within two to three weeks.
 
I saw it when I was going through all the company announcements before open. I generally don't buy around the open to see what happens. This was a good example, opened at 7.7 jumped up to 8 (the day's high) and downhill from there to finish up 12% but 6% down off the initial trades.



AXE is another example.
 
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Westgold Resources Limited has subscribed for 48 million ordinary shares in Musgrave Minerals through a share placement at a price of 7c per share. The $3.36 million investment by Westgold is at a 15.4% premium to the 15-day VWAP and represents a holding of 15% (undiluted) in Musgrave. After the placement MGV will have approximately $5.5 million in cash, enabling them to accelerate exploration at their 100% owned Cue Project in the Murchison district of Western Australia.

This is a big vote of confidence in Musgrave Minerals by Westgold Resources. No doubt they see a lot of potential in MGV's Cue Project and perhaps there is also JV potential somewhere down the line. Now they are well funded and there will be no need to raise capital in the near future.

MGV had just slipped below support at 6c last week but this announcement has given the market a little more confidence in them. They are currently trading at 6.6c, up 17.86% on their last close of 5.6c.

 
MGV's Cue Project just keeps on delivering solid intersects. Further results released today reported that the southern most RC drill hole in A Zone at Lake Austin North has intersected the best result to date:

o 94m @ 2.4 g/t Au from 156m to end of hole (“EOH”) in 18MORC057 including:
▪ 52m @ 4.1 g/t Au from 198 m to EOH, including:
• 12m @ 8.8g/t Au from 204m and
• 6m @ 6.3g/t Au from 240m​

To quote the announcement further:

A new diamond drilling program has commenced at A Zone with initial assays expected in five weeks.

MGV closed up 27.12% to 7.5c today on volume of more than 11 million shares.

 

Positive again today ……. thick intercept at 94 mtrs!!
 
barney said:
Positive again today ……. thick intercept at 94 mtrs!!
Click to expand...

Up again today as well. A 14.1% gain to finish the day at 8.9c with an intraday high of 10c. Looking at a three year chart 10c looks like long term resistance so a break through there would be a very bullish sign.

Solid support at 6c is worth noting also.

 
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Breakout for Musgrave Minerals today after the company announced this morning that diamond drilling has confirmed a significant gold discovery at Lake Austin North.

Here are the details as announced by MGV. Some fantastic results there.



MGV smashed through resistance at 10c this morning and is currently trading at 10.5c, up 14.13% from Friday's close. It will be interesting to see if it can consolidate above 10c and build a new base of support.

 

This is shaping up to be pretty big .... widespread lower grade near surfacer and looks to be increasing grade as it gets deeper.

The first 300 metres I assume will be relatively straight forward Open Pit so the extra "dirt" is not too much of an issue …… and if the grades continue to improve at depth, SH's will be smiling ……
 
MGV bucking the trend today with some impressive high grade drilling results released.



Interesting that the resource update has been pushed back to Q3 this year. That would seems to indicate that the company is becoming increasingly confident with the incoming drilling results and would like more time to continue drilling before completing it.

The results from the follow-up drilling scheduled to commence in April should reveal a lot.
 
greggles said:
MGV bucking the trend today with some impressive high grade drilling results released.
Click to expand...

Thanks for the bump Greg ……. Should have put this on the watchlist that I watch .... Time to accumulate the retracements ... hopefully not too late.
 
I’ve picked MGV for the August 2020 ASF competition
High grade gold drilling results continue to flow from the companies exploration projects in particular the Starlight discovery
Quarterly report out today caught my eye

 
Just refreshed my snapshot level of understanding of this. Don't remember why I passed on it in the past, seems to have a lot going for it.
Couldn't want for a better positioning with a view to toll milling, jvs, merger, or takeover possibilities - maybe Kalgoorlie region would shade it. Ramelius' (RMS) Mt Magnet Checkers mill just down the road, but also in the picture, Westgold and Silverlake. Gasgoyne's Dalganga is a nice big 2.5mtpa mill ~120kms by road. Getting some great hits and has a high grade open cut resource that is easily good enough to be truckable to the farthest prospective mill (Silverlake's Deflector ops)

They have a very high grade near surface MRE of 262kozs @ 10.2g/t in early prefeasibility that tests out at 96-97% recoverability with a high gravity portion. They have identified an unexplored 7km gold corridor associated with this and have embarked on a 30,000 mtr ac/rc drilling program. Outside this 100% core area they have a jv happening with EVN who are earning 70% for $18m expenditure.

534m fpos
15m options
$23m cash + $2m investments
No debt

Some possibly ramping speculative chat elswhere that MGV will eventually be taken out caused me to look at the weekly chart and the downtrend was broken almost 3 months ago. The last two strong wkly candles completed the recovery with a neckline break of a head and shoulders on two blips of firm positive volume.

Not Held, Not Buying

Weekly


 
Daily chart this time. So has done a 50% retrace of the prior short term rally, is currently back at the neckline, is possibly following a channel and is making reversal signs last 3 candles. So with the background of their exploration results and situation close to Ramelius operations and others, am reconsidering.

Not Held

 

Chart looks good to me. Bouncing off .40 support and holding.

Not sure why it should have a MC of $200m with 262k oz au in the ground. Amazing grades, but...

Must be some exploration upside. All look to be high grade.

Is their plan just to truck Break of Day to someone else's mill? Or, be bought out / JV?
 
They talk about the aspiration to build a mill but I doubt that they are looking for that outcome although I could easily be wrong. But just looking at the Spectrum Metals (SPX) takeover bymRamelius Resources to gain the Penny West deposit which was 355,000 ozs @ 13.8g/t grade but that, while not exactly deep, was deeper than MGV resource. Moreover, SPX's tenement with Penny West was 150 kms away from the Mt Magnet mill whereas MGV's resource is only about 30 kms away with a nice direct road by the looks. Ramelius has done a lot of acquisitiins and this one seems obvious if price is ageeable. If not, there are other potential acquirers. Am 'researching' now, probably buying on Monday or next week.
 
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