Musgrave Minerals Limited (ASX: MGV)

MGV is an Australian-based Metals and Mining company engaged in gold and base metal exploration. The company discovers and develops gold and base metal resources within Australia. As of 25 February 2022, MGV clocked a market capitalization of ~AUD161.15 million.

Q2FY22 Operational Progress: At the Cue Gold Project, the resource drilling has continued at the White Heat-Mosaic and Big Sky prospects. The drilling is targeted to deliver a resource update in Q2FY22. The Mineral Resource estimate for the Cue Project stood at 6.4 Mt at 3.2g/t gold for 659koz of contained gold. The regional drilling has also outlined mineralized positions, and assays stand pending for over 140 drill holes. Evolution JV, the Lake Austin area, is recognized as highly prospective for gold exploration and is substantially underexplored. The JV has met its minimum exploration spend of $4 million within the first two years, earning a 75% interest in the JV.

Business Update on Mosaic Lode: Exceptional gold grades were intersected near-surface at the new Mosaic Lode. The gold grade results include 9m @110.5g/t Au from 42m and 2.8m at 122.2g/t Au from 72m. The infill RC drilling at the Big Sky has continued to intersect substantial near-surface gold mineralization.

Technical Analysis: On the weekly chart, MGV prices are sustaining below the downward sloping trend line resistance zone and facing the resistance of the same. Moreover, the momentum oscillator RSI (14-period) trading at ~41.87, indicating negative momentum in the stock. Further, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, which may be a resistance level for the stock. An important support level for the stock, is placed at AUD 0.225 while the key resistance level is placed at AUD 0.345.

Considering the company’s current price levels with indecisiveness, investing in this stock at such uncertain levels should be taken with a calculated approach; hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.295 per share, down ~1.67% as on 25^th February 2022.

Weekly Technical Chart – MGV

Source: REFINITIV

Middle Island Resources Limited (ASX: MDI)

MDI is involved in exploration, mining and development of gold in Western Australia and Northern Territory regions. Its projects include Sandstone Gold Project and Barkly Copper-Gold Project. As of 25^th February 2022, the company’s market capitalization stood at ~AUD 15.30 million.

Q2FY22 Operational Activities: MDI began a detailed aerial magnetics and radiometric survey across the Barkly Copper-Gold Super Project in late Q2FY22. The company completed the two kilometers Induced Polarity (IP) survey over the Crosswinds Copper. The sale of Sandstone assets was announced on 16 December 2021. MDI also announced the findings of around 536 auger drill holes, establishing five new targets at Sandstone. As of 31 December 2021, the company held a cash balance of $1.48 million. Cash outflow from operating activities stood at $0.611 million for the quarter and $1.725 million past six months. The outflows were primarily attributed to exploration & evaluation expenditures, production costs, and staff costs.

Technical Analysis: On the weekly chart, MDI prices recently broke the upward sloping trend line support zone and facing the resistance of the same. Moreover, the momentum oscillator RSI (14-period) trading at ~49.23, indicating weak price momentum in the stock. Further, the prices are trading below the trend-following indicators 50-period SMA which may act as an immediate resistance for the stock. An important support level for the stock, is placed at AUD 0.110 while the key resistance level is placed at AUD 0.135.

Considering the company’s current price levels with indecisiveness, investing in this stock at such uncertain levels should be taken with a calculated approach; hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.120 per share, down ~4.0% on 25^th February 2022.

Weekly Technical Chart – MDI

Source: REFINITIV 

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where the stock prices tend to find resistance when they are rising, and the uptrend may pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Yellow colour line represents the Trendline.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.

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