Evolution satisfies earn-in milestone
Friday, January 13th, 2023
Evolution Mining has satisfied the earn-in requirement under the Cue Project Earn-in and Exploration Joint Venture Agreement to earn a 75 per cent interest in the Cue JV in WA’s Murchison district.
An unincorporated joint venture has now been formed, with Evolution holding 75 per cent and Musgrave 25 per cent.
“As Evolution has met the $18 million expenditure requirement to complete the earn-in, an unincorporated joint venture is now formed and a joint venture committee will be established,” Musgrave Minerals said in a statement.
“Musgrave has the right to contribute to ongoing exploration costs on a pro-rata basis to maintain its 25 per cent interest following approval of a proposed exploration program and budget, or can elect to dilute.”
The Cue JV is focused on Lake Austin, which lies to the north of Musgrave Minerals’ 100-per-cent-owned Mineral Resources at Cue.
Musgrave entered into the Cue JV in October 2019 and can now establish a joint venture committee to meet early this year.
A data review is currently underway and a program and budget for ongoing exploration is being prepared by Evolution for consideration by the joint venture committee.
Musgrave reported promising gold recovery rates in December last year.
“The very high total gold recovery and high gravity-only component recovery ensures that conventional processing options can be applied in any development scenario moving forward and will strongly inform the Stage 1 PFS, which is due for completion late in the first quarter CY2023,” Musgrave managing director Rob Waugh said at the time.
“Our granted mining leases now fully encapsulate all our gold resources in this area, and cover the broader development envelope. This is another significant positive step forward for the project.”
Waugh said this was another set of strong, consistent metallurgical results which show there is a general uniformity and consistency with the recoveries across all the gold deposits at Cue.