Cassini Resources Hitches Prospects to One Tree Hill

THE INSIDE STORY: One drill hole at One Tree Hill has strengthened Cassini Resources’ (ASX: CZI) belief in the exploration upside remaining in the company’s West Musgrave project in Western Australia.

The West Musgrave project (WMP) is subject to an Earn-in/ Joint Venture Agreement between Cassini Resources and OZ Minerals (ASX: OZL).

OZ Minerals can earn up to a 70 per cent interest in WMP by sole funding a minimum of $36 million on development and exploration, including completion of a Definitive Feasibility Study (DFS).

Cassini will remain as operator of the project until the DFS stage.

Recent activity under the JV involved the drilling of hole CZD0017 at the One Tree Hill prospect, located within the WMP about 13 kilometres southwest of the Babel deposit.

One Tree Hill first came to Cassini’s attention in 2015 when it undertook remodelling of down-hole electromagnetic (DHEM) data from historical drilling.

This resulted in the drilling of a previously poorly-defined EM conductor by hole CZD0008, which intersected two chalcopyrite-rich veins.

However, CZD0008 failed to intersect the original target and the existence of an off-hole conductor, with an extremely high modelled conductance, suggested the existence of pyrrhotite-rich massive sulphide mineralisation.

This conductor was the subject of the recent drilling, from which assay results have confirmed the discovery of magmatic copper-PGE-nickel mineralisation at One Tree Hill.

Drill hole CZD0017 returned:

34 metres at 1.05 per cent copper and 0.5g/t PGE (Pt+Pd) from 332m, including a massive sulphide zone of 3.2m at 2.16 per cent copper, 0.58 per cent nickel, 0.1 per cent cobalt and 1g/t PGE from 344.6m coinciding with the targeted DHEM plate.

The PGE and nickel concentrations intersected by hole CZD0017 have confirmed the presence of a magmatic style of mineralisation, which Cassini feels may be similar to mineralisation at the Succoth and Nebo-Babel deposits.

A collection of very strong indicators of a much larger mineralised system have emerged at One Tree Hill.

These include the apparent thickness of the gabbroic host intrusion being greater than 120m, PGE concentrations of 1g/t, and multiple broad zones of strong PGE anomalism in almost every hole drilled to date.

Cassini considers the results to show the prospect demands further testing by drilling and geophysics.

Although the nickel concentrations in the massive sulphides at One Tree Hill are low, Cassini is convinced the presence of higher grade nickel zones within a potentially much larger mineralised system are possible, as has previously been postulated for the Succoth deposit.

“These latest results from One Tree Hill build on the opportunity that is presenting itself out there,” Cassini Resources Managing Director Richard Bevan told The Resources Roadhouse.

“We now have a nickel development project with significant copper upside through the deposit at Succoth and early exploration success at One Tree Hill.

“One Tree Hill sits pretty much the same distance from Nebo-Babel to the southwest as Succoth is to the northeast and confirms that we are in a mining camp – we have now hit another mineralised system that has good copper and PGE grades and looks as though it could be part of something bigger.

“And it is very much under-explored – with no historic drilling between this drill hole and Nebo-Babel.”

Since being drilled, CZD0017 has been cased with PVC for a DHEM survey, which is anticipated to be carried out during the coming field season.

The DHEM survey will help the JV determine the orientation of any potential mineralisation, which currently appears to be open in most directions.

It will also expand the current DHEM coverage, which is limited to an approximate radius of 100m around CZD0008.

Geophysical reviews suggest the mineralisation in CZD0017 was not able to be detected from existing surface EM surveys and that it may extend beyond the range of the original CZD0008 DHEM survey.

“There has been some ground EM done previously, but we’re of the view that this hasn’t effectively explored the area as it hasn’t been able to identify these sulphide zones at depth,” Bevan explained.

“We believe One Tree Hill could be a significant discovery, because it confirms the prospectivity of an entire 40-kilometre corridor that we have identified.

“It warrants further exploration and drilling and adds value to the project

“Potentially it could be another nickel-copper-sulphide deposit to go with the three deposits we have already identified.”

While all this has been happening, the JV has been undertaking work to advance the Further Scoping Study (FSS) being carried out on the Nebo-Babel deposit.

Resource extension drilling is about to commence on several targets at Nebo-Babel considered most likely to provide an increase to the size of the existing high-grade domains within the deposits.

The aim is to find additional high-grade tonnes that would be mined early in the potential mine plan.

These targets include massive sulphide zones at Nebo, extensions to the Startmeup Shoot at Babel and definition of the roll-over zone at Babel.

“We consider all the targets we have identified to have significant potential to impact project economics if further high-grade mineralisation can be found,” Bevan said.

“Once we have a better understanding of these high-grade domains, in terms of the dip and strike extents, and variations in geometry and grade, then we will be able to plan the appropriate infill drilling that will be required during the PFS for the purposes of ore reserves.

“Additional drilling and a better understanding of the grade variations may also reduce several metallurgical test samples that will be required during the PFS.”

Beyond the WMP, Cassini is exploring for gold at the company’s 100 per cent-owned Mount Squires project.

Previous explorers identified several gold prospects with efforts leading to the discovery of gold mineralisation at the Handpump prospect, returning intercepts of:

15m at 2.3g/t gold from 31m, including 5m at 4.7g/t gold from 34m; and
12m at 1.3g/t gold, including 5m at 2g/t gold from 25m.

Exploration after the initial discovery was limited with only 26 RC holes at this prospect, however, mineralisation remains open in most directions.

Although still in the early stages of exploration, Cassin sees economic potential at Mount Squires through the thickness and tenor of its gold mineralisation.

“We consolidated the Mt Squires landholding last year by picking up some surrounding land we considered could be prospective for gold,” Bevan said.

“The benefit of gold exploration for Cassini – whilst we’re in the JV with OZ Minerals – is that we are out there conducting some exploration in our own right.

“It’s good that we are not just concentrating on the nickel and copper assets – we now have some diversity amongst the commodities we’re developing.

“We are reasonably confident that we can go out there, drill some holes and find not just an isolated prospect, but a new gold frontier.”

Cassini is preparing work programs for the Handpump prospect to be undertaken upon receipt of heritage and environmental approvals.

The company considers step-out and infill RC drilling is warranted at Handpump to determine the extent of mineralisation and controlling structures.

“Some of that previous drilling was carried out because there was some outcrop to investigate, but we feel there is potentially more prospective structures under cover and yet to be drilled,” Bevan said.

Cassini Resources Limited (CZI)
…The Short Story

HEAD OFFICE
10 Richardson Street
West Perth WA 6005

Phone: +61 8 6164 8900

Email: admin@cassiniresources.com.au
Web: www.cassiniresources.com.au

DIRECTORS
Mike Young, Richard Bevan, Dr Jon Hronsky, Phil Warren, Greg Miles