Musgrave Minerals Ltd: Quarterly Activities Report

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) (OTCMKTS:MGVMF) is an Australian resources company focused on gold exploration and development at the Cue Project in the Murchison Province of Western Australia (Figures 1 and 2*).

At the Cue Project, the total gold resources (Indicated and Inferred) are 6.4Mt @ 3.2g/t Au for 659koz Au (see MGV ASX announcement 11 November 2020, "Break of Day High-Grade Mineral Resource Estimate"). Prefeasibility level activities are ongoing at Break of Day and Lena.

During the quarter, activity on the Company's wholly owned tenure at Cue included a large regional reverse circulation ("RC") drilling program at the Big Sky and Amarillo gold prospects, extensional drilling at the White Heat prospect and a regional RC program east of Break of Day. A total of 150 RC holes for approximately 16,080m of drilling was completed across multiple areas. This RC program led to the discovery of the Waratah gold trend approximately 400m east of Break of Day and the discovery of the new high-grade Mosaic gold lode south of White Heat. Regional aircore drilling programs are underway west of Lena with 43 holes for 4,313m completed during the quarter. Diamond drilling commenced across a number of deposits and prospect areas.

Significant delays in assay turn-around and support supplies are being experienced, with the Company awaiting assay results for more than 140 drill holes.

On Lake Austin, part of the Evolution Mining Ltd ("Evolution") JV, significant aircore and diamond drilling programs are ongoing. Aircore drilling extended gold mineralisation at West Island with the regolith footprint at this prospect now extending for over 1.6km. Diamond drilling follow-up at West Island has intersected high-grade basement gold mineralisation. Evolution has elected to manage the joint venture from 1 January 2022 and has approved an increased budget for H2, 2022.

The exploration upside for the project is high with significant follow-up drill programs already underway in the March quarter.

Corporate

At the end of the December 2021 quarter, the Company held $17.5M in cash with the Company's capital structure comprising:

- 537,172,949 fully paid ordinary shares (ASX:MGV); and
- 17,200,000 unlisted options at various exercise prices and expiry dates

The Quarterly Cashflow Report (Appendix 5B) for the period ending 31 December 2021 provides an overview of the Company's financial activities. Cash exploration expenditure for the reporting period was $1.5M. Corporate and other expenditure amounted to $296k. The total amount paid to Directors of the entity and their associates in the period (item 6.1 of the Appendix 5B) was $138k and includes salary, Directors' fees, and superannuation.

Investments

The Company holds 12.5 million shares in Legend Mining Limited ("Legend") currently valued at approximately $0.9M based on a Legend share price of $0.07/share. Musgrave also holds 1,308,750 ordinary shares in Cyprium Metals Limited ("Cyprium") currently valued at approximately $0.2M based on a Cyprium share price of $0.155/share.

*To view the full report, please visit:
https://abnnewswire.net/lnk/834GM010

About Musgrave Minerals Ltd:

Musgrave Minerals Ltd. (ASX:MGV) is an active Australian gold and base metals explorer. The Cue Project in the Murchison region of Western Australia is an advanced gold and copper project. Musgrave has had significant exploration success at Cue with the ongoing focus on increasing the gold and copper resources through discovery and extensional drilling to underpin studies that will demonstrate a viable path to development in the near term. Musgrave also holds a large exploration tenement package in the Ni-Cu-Co prospective Musgrave Province in South Australia.

Source:
Musgrave Minerals Ltd.

Contact:

Rob Waugh Managing Director Musgrave Minerals Ltd. +61 8 9324 1061 Luke Forrestal Associate Director Media and Capital Partners +61 411 479 144