This new, regional aircore drilling program will test four large target areas and consist of over 20,000 metres and 200 drill holes.
Musgrave managing director Rob Waugh said: “This regional geochemical exploration program is another important step to test the gold potential of this highly prospective area under the cover sediments of Lake Austin.”
As part of the agreement, Evolution also agreed to subscribe for 18,587,361 ordinary shares in Musgrave through a share placement at a price of 8.07 cents per share, representing a holding of 4.59% in the company.
Drilling will test the extension of the Lena-Break of Day mineralised corridor under Lake Austin and will take around three months to complete with the first assays expected in April.
Geochemically anomalous areas will require follow-up basement drill testing to define the economic gold potential.
Elsewhere at the Lake Austin JV, an initial diamond drilling program at Lake Austin North is complete and assay results are expected in March 2020.
To date, the company has defined an over 28 kilometres-long prospective gold corridor that hosts its 100%-owned the Break of Day and Lena gold resources as well as the Lake Austin North discovery.
Musgrave is progressing towards a Lena resource update later this quarter and is undertaking reverse circulation (RC) drilling at Break of Day with first assays expected in March.
RC drilling is continuing to test the new high-grade gold discovery at the Consols prospect, within the Mainland area, with first assays expected in late March 2020.
The company’s Hollandaire deposit is part of an earn-in JV with Cyprium Metals Ltd (ASX:CYM) which exercised an exclusive option to earn an 80% interest in the non-gold rights over the northern tenure in May 2019.
Cyprium is required to spend $2 million on exploration within two years to acquire the 80% interest.
Musgrave will retain 100% of the gold rights and a 20% free-carried interest in the non-gold rights to completion of a definitive feasibility study.