THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) provided an update regarding Further Scoping Study (FSS) activities at the company’s West Musgrave project (WMP), located in Western Australia.
Cassini Resources explained the current program of work represents the first stage of the Earnin/JV Agreement it has with OZ Minerals (ASX: OZL).
The stated outcomes of the FSS are to increase confidence in metallurgical performance of a full range of mineralisation types within the Nebo-Babel deposits.
These results will then be used to update previous mining and processing studies in order to determine optimal size of the operation.
In addition, all capital and operating costs are being reviewed and updated for inclusion in the current study.
Cassini explained that testwork in the initial scoping study was focused on the relatively high head grade ore domains, which would be processed through a 1.5 million tonnes per annum treatment plant.
The scope of the FSS testwork program has been designed to cover whole ore composites and variability samples which are representative of the ore domains and average head grades within the deposits, all of which are aligned with the increased project size development options.
“Two master composite samples, each representing typical run of mine material, of the early and later years of a likely mine schedule, respectively, have also been tested,” Cassini Resources said in its ASX announcement.
“The program is progressing well with the completion of all testwork expected by the end of July.”
The FSS work included a Resource extension drill program at Babel targeting a number of modelled down hole electromagnetic conductors (DHEM), primarily outside the existing Resource.
“There are a number of zones where mineralisation remains open, and these could provide future resource extensions,” Cassini said.
The company believes the program has demonstrated this potential with a best result of:
8 metres at 0.50 per cent nickel, 0.40 per cent copper, 0.01 per cent cobalt and 0.28g/t PGE, including 2m at 1.21 per cent nickel, 0.22 per cent copper, 0.03 per cent cobalt and 0.41g/t PGE.
“This hole is located near the northern ‘roll-over’ contact at Babel which has returned numerous high-grade results in previous drilling,” Cassini said.
“Geological interpretation and modelling of Nebo and Babel is completed and results are used in a resource update which is underway.”