THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) has completed the final Joint Venture Agreement with OZ Minerals Limited (ASX: OZL) in regards to the development of the company’s West Musgrave project (WMP), located in Western Australia.
OZ Minerals may earn up to a 70 per cent interest in the project by sole funding a minimum of $36million on development and exploration.
The latest agreement covers OZ Minerals’ staged Earn-in and Joint Venture of the WMP by funding continued studies on Nebo-Babel to progress it to a Decision to Mine, as well as regional exploration spend of up to $8 million to assist in identifying additional value adding opportunities.
OZ Minerals and Cassini Resources, have launched a $3 million scoping study of the West Musgrave copper and nickel deposits in West Australia.
According to an announcement from OZ Minerals, the scoping study will set out both the appropriate size of any future mine along with the optimal infrastructure solutions to undertake the project and is expected to be completed in September 2017.
“Following on from our initial announcement in August we have now entered into a formal joint-venture agreement with Cassini Resources and will begin to map out how to best develop this high-class resource,” OZ Minerals CEO Andrew Cole said in the company’s announcement to the Australian Securities Exchange.
“A key part of our initial scoping study is the development of a geometallurgical model for the Nebo-Babel deposit which will determine the scale of future mining operations to extract the best overall value.
“The work will also include options around infrastructure for the site, drawing on OZ Minerals’ remote mining knowledge and expertise.
“The focus of both JV partners is to clearly set out in the scoping study the economic rationale for this project and how it can be built and operated.”