Ann: High Grade Zinc Intersected at Mt Eelya, page-5

Spurlo I'm not experienced in base metals but I understand the base metals program is not a high priority for Musgrave and as encouraging as the results have been so far, unless there were some really spectacular results from the remaining holes attention will very much focus back on Lena and Break of Day and other gold prospects along the shear zone.

The arrival of Westgold is maybe a plus, maybe not. If Musgrave decides not to pre-empt Westgold will have 20% of the project and that's a partner you would like to have being super active in the region. If RW decides to pre-empt and grab the 20% (they have the $$s) then if Westgold wants an interest in the ex SLR leases it would have to take over Musgrave and grab 100%. It would be out of character I believe for Peter Cook to be satisfied with a minority interest so you would have to think they are or already have run the ruler over MGV. Question is what would Westgold pay for Musgrave?

The $1.5 million valuation SilverLake has on the last 20% values the entire project at just $7.5 million which I believe those of us invested in Musgrave (and Musgrave management) think is a ridiculously low ball figure and one that may have had an influence on trading yesterday.

You wouldn't want to see Westgold offering just 10 cents for Musgrave when the company' is about to announce an updated reserves figure which will lead to a scoping study that would demonstrate the potential for a profitable mining operation. The share price should rise as we move along this path. In my view MGV holds the potential to be a five bagger or more over the next 12 months. Look at what happened to the Pantoro share price as they developed Nicholsons a similar sized project.

Westgold's Peter Cook is a class act with a history of buying assets at bargain basement prices then adding massive shareholder wealth , the Nifty purchase last year a case in point. So if they were going to move on Musgrave you could expect them to do so reasonably quickly. After all now that they have bought the Tuckabiana mill they will be looking for additional feedstock to justify the purchase once the mill is made opeartional again. Most of Westgold's producing Murchison assets involve the refurbishment of old mines and deeper more expensive underground operations so why wouldn't they want to get their hands on a greenfields deposit.


We have had some exchanges on this thread about RW's admirable unwillingness to ramp the company's potential at least until there is more evidence to support and quantify claims of a "significant new gold discovery in the Murchison". But the result is an undervalued share price that presumably makes the company extremely attractive to the likes of Peter Cook at Westgold. I would rather have the honesty and integrity and credibility of an RW than the alternative but it comes at a cost

You have to wonder want the team at Ramelius Resources must be thinking, they too maybe in the market for new resources in the Murchison and have a bigger war chest to play with than Westgold.

I maybe wrong but I don't see any blocking interests in Musgrave that could hold out against a Westgold move but would value other opinions on that score. I am not very familiar with takeovers and m&a activity.