Cassini Resources Limited (ASX: CZI)

Cassini Resources punches well above its weight divisions for a junior exploration company.

Cassini Resources is developing a project with potential to become a low cost (first quartile) nickel/copper operation with an anticipated initial mine life of over 15 years with a Joint Venture partner with industry pedigree.

Cassini Resources acquired the Wets Musgrave Project (WMP) from BHP Billiton in 2014 from when it progressed the project by conducting regional exploration, in-fill drilling and further geological activities.

The company’s initial work quickly confirmed the economic viability of the Nebo-Babel deposits, attracting the attention of industry heavyweight, OZ Minerals (ASX: OZL).

In 2016 the two parties executed a Joint Venture Agreement to fast track development of the WMP, located in Western Australia.

Besides the already established Nebo-Babel nickel and copper sulphide deposit, the projet also entails the emerging Succoth copper deposit.

Under the agreement, OZL is funding a minimum of $36 million of development and exploration expenditure, including completion of a Definitive Feasibility Study (DFS), for a 70 per cent interest in the project.

The agreement includes a minimum $28 million funding for continued studies on Nebo-Babel to progress it to a Decision to Mine, as well as a minimum regional exploration spend of $8 million to assist in identifying additional value adding opportunities.

Cassini has taken that $8 million ball and run with it hard, and although it remains focused on the WMP, the company has its eyes on numerous regional opportunities it expects could provide exploration success.

The company has an option to earn 80 per cent of the Yarawindah Brook nickel-copper-cobalt project northeast of Perth, near New Norcia.

The project has had limited nickel, copper and cobalt exploration, despite a favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation.

Historic exploration has focussed primarily on a small platinum and palladium (PGE’s) resource which the Company views as a “path-finder” anomaly for massive nickel – copper – cobalt sulphides.

An airborne electromagnetic survey in 2018 identified conductors worthy of further investigation, followed by a surface fixed loop electromagnetic (FLEM) survey over higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.

Cassini was encouraged enough by its exploration results to add additional tenements along strike, taking its total land position to146 square kilometres.

The 100 per cent-owned Mount Squires project lies adjacent to the WMP but does not form part of the Joint Venture with OZ Minerals.

Gold mineralisation was first identified at Mount Squires by Western Mining Corporation (WMC) during geochemical surveying in the late 1990s.

Now in the 2010s, Cassini has spent the past two years developing the project by consolidating tenements with prospective gold targets that were defined through historical drilling and geochemical data compilation.

The current healthy Australian Dollar gold price has given impetus for Cassini to pay more attention to Mount Squires during the 2019 field season.

Historical results from two targets, the Handpump and Centrifical prospects, have whetted Cassini’s interest.

Previous drilling at the Handpump prospect returned gold intercepts including: 15 metres at 2.3 grams per tonne gold from 31m down hole.

It is thought gold mineralisation at Handpump may represent more distal mineralisation that has leaked north-westwards along the major structure.

The Centrifical prospect is most prominent soil geochemical anomaly with a zoned molybdenum-lead-zinc anomaly at the intersection of prominent northwest and northeast striking structures that may represent the heart of an epithermal mineralised setting.

The company believes further desk top work may enhance these targets for drill testing and it recently acquired new remote sensed datasets to help map surface geology and provide better context for soil geochemical anomalies.

At the 100 per cent-owned West Arunta zinc project in the Amadeus Basin, Cassini has been targeting sedimentary zinc targets since 2014.

These targets have been developed over time through airborne electromagnetic, soil geochemistry, aeromagnetic and gravity surveys and a 10-hole RC drill program was carried out in 2018.

Logistics meant results of this drilling were delayed, however, a preliminary analysis of results has now been completed showing anomalous values of zinc, lead, copper and silver were intersected in several holes with a best result of:

WAC0022
5m at 0.15 per cent zinc and 2g/t silver from 97m.

Cassini was still working its way through these results at the time of writing but indicated that one it has completed a full analysis it will then consider its approach to further exploration at the project.

 

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

Directors: Mike Young, Richard Bevan, Greg Miles, Jon Hronsky, Phil Warren