Evolution Mining Share Price Sluggish on New Gold Finds (ASX:EVN)

Share prices of gold companies Evolution Mining Ltd [ASX:EVN] and Musgrave Minerals Ltd [ASX:MGV] have experienced very little action today despite announcing new gold finds.

At the time of writing the EVN share price is up slightly by 4 cents of 0.86% to $4.67 and MGV has experienced no change, trading at 37.5 cents per share.

ASX EVN Share Price Chart

Source: Tradingview

Both gold stocks have experienced a recent decline in share price, tracking the recent price adjustment in the gold price.

However, MGV’s decline appears to be levelling out, while EVN looks like it could continue on its downwards trajectory.

Basement gold not exciting investors

Recent drilling results from Lake Austin have defined new gold regolith anomalies at West Island and extended the gold anomalism at the site, according to MGV.

The results come from EVN’s and MGV’s Cue Joint Venture project.

Although some very broad mineralisation was intercepted, the rather average gold grading may have failed to excite investors.

Highlights from the latest results include:

  • 50m at 1.17 grams of gold per tonne (g/t) from 70m, including 4m at 7.57g/t from 114m
  • 16m at 0.50g/t from 87m
  • 16m at 0.31g/t from 84m
  • 80m at 0.24g/t from 84m, including 19m at 0.57g/t from 145m

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Evolution Mining and Musgrave Minerals Joint Venture Gold Project

Source: Musgrave Minerals

Despite the mineralisation clocking in at the low-to-average grade over the scale, the results are believed to have extended the gold anomaly over more than 5km of strike at Lake Austin North.

MGV Managing Director Rob Waugh said:

The joint venture aircore drilling continues to define strong consistent gold anomalies under Lake Austin indicative of a large mineralised system in the basement. We are looking forward to the commencement of diamond drilling in February to test the basement beneath a number of these large regolith gold targets.

Potential remains

Regardless of the lacklustre reaction in the share price today, there’s plenty of potential left at this project in my opinion.

Don’t believe me?

There’s a reason why this small-cap stock has watched its shares soar over 320% over the past 12 months.

MGV also added in their announcement today that many of the air-core drill holes in both phases of the drill program terminated in anomalous gold.

Meaning they haven’t yet found where the gold mineralisation ends.

A good problem to have in my books.

Results are currently being integrated with existing datasets to define final basement drill hole locations for diamond drilling, which is planned to commence in early February 2021.

I’ll be sure to keep you updated with developments when they come through.

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Lachlann Tierney
For The Rum Rebellion

Lachlann Tierney is a writer for The Rum Rebellion and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. 

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