THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) declared OZ Minerals (ASX: OZL) to have reached 51 per cent ownership of the West Musgrave project (WMP) Joint Venture in Western Australia.
OZ Minerals (ASX: OZL) has completed the earn in of 51 per cent of the West Musgrave project following the necessary investment of $22 million.
Cassini Resources and OZ Minerals are currently conducting a Pre-Feasibility Study (PFS) of the West Musgrave copper nickel project, which has been focused to date on further drilling and improving metallurgical recoveries.
Cassini Resources managing director Richard Bevan said in the announcement to the Australian Securities Exchange. “With the West Musgrave project’s PFS being well on track, we look forward to continuing our strong relationship with OZ Minerals as the project progresses.”
OZ Minerals’ deal with Cassini is one of a number of exploration earn-in agreements the company has with explorers.
OZ Minerals approaches these deals by providing with exploration expertise in specific geologies and locations while earn-in partners access capital to undertake drilling programs.
OZ Minerals typically works with the earn-in partners to oversee projects while they manage on the ground activities.
The company considers the early study results achieved to date at the WMP encouraging in a number of areas, including resource extension drilling and metallurgy, with good progress made in heritage clearances and community engagement.
“Our confidence in the project’s potential has increased and supports reaching the 51 per cent earn-in level earlier than originally anticipated,” OZ Minerals CEO Andrew Cole said.
“Recent early metallurgical test work shows significant improvements over the results achieved during the Further Scoping Study with a material improvement in copper and nickel recoveries.
“On results to date, we have also seen an increase in copper concentrate grade while nickel concentrate grade remains in line with the Further Scoping Study.
“These encouraging, improvements together with results from our regional exploration drill program that intersected massive sulphides at Yappsu (located approximately six kilometres from the Nebo-Babel deposits which are the primary focus of the PFS), further support our view that West Musgrave has the potential to be an exciting new mineral province with near mine and district opportunities.
“The 2018 resource drilling program to date has also increased our confidence in the existing resource model and geological interpretation such that we now intend to bring forward the 2019 infill drilling program to commence later this year, so as to enhance the potential Feasibility Study schedule.”