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THE DAILY ROADHOUSE

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Cassini Resources and OZ Minerals Deliver PFS for Low-Carbon, Long-Life, Low-Cost Mine

THE BOURSE WHISPERER: OZ Minerals (ASX: OZL) and Cassini Resources (ASX: CZI) finally delivered the long-awaited results of the West Musgrave, Nebo-Babel Pre-Feasibility Study (PFS).

Gold Road Releases 2020 Gruyere Guidance and Resource Upgrade

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported 2020 production guidance and a Resource upgrade for the Gruyere Joint Venture.

Lithium Australia Subsidiary Awarded Federal Battery Development Grant

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) 100 per cent-owned subsidiary VSPC is to participate in a federal government Co-operative Research Centres Projects (‘CRC-P’) program.

 

Cassini Resources and OZ Minerals Deliver PFS for Low-Carbon, Long-Life, Low-Cost Mine

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THE BOURSE WHISPERER: OZ Minerals (ASX: OZL) and Cassini Resources (ASX: CZI) finally delivered the long-awaited results of the West Musgrave, Nebo-Babel Pre-Feasibility Study (PFS).

The West Musgrave project in Western Australia is a Joint Venture between OZ Minerals (70%) and Cassini (30%).

The PFS has determined a long life for the project, coming in with an approximate 26-year open pit copper and nickel sulphide mine.

The study also delivered a maiden Probable Ore Reserve of 220 million tonnes at 0.36 per cent copper and 0.33 per cent nickel, representing around 22 years of the estimated 26-year life of mine with the balance of the mine life underpinned by a combination of Indicated and Inferred Mineral Resource.

The study included an innovative 50MW base case power supply proposal that will use a hybrid solar-wind-battery-diesel solution, although a gas pipeline remains a secondary option.

Baseline data collected since 2018 has demonstrated a high quality, consistent solar and wind resource is available, with higher wind velocities at night offsetting the lack of solar.

Although the current base case assumes power will be purchased under a Power Purchase Agreement arrangement, the final ownership structure for power assets will be further considered during the next phase of project development.

Modelling has demonstrated that around 70 to 80 per cent renewables penetration can be achieved for the site, with the current mix modelled to be an optimised mix of wind, solar and diesel supported by a battery installation.

The JV declared that should the renewables option be implemented, this innovative power supply solution would make West Musgrave one of the largest fully off-grid, renewable powered mines in the world.

The solution would result in the avoidance of in excess of 220,000 tonnes per annum of carbon dioxide emission compared to a fully diesel-powered operation.

“The Pre-Feasibility Study is now complete and has confirmed the project can be a low carbon, low cost, long life mine producing copper and nickel, both in-demand minerals for the renewable and electrification industries,” OZ Minerals CEO Andrew Cole said in the company’s announcement to the Australian Securities exchange.

“Building a viable asset in a remote part of Australia is challenging, but through our collaborative approach we have developed innovative off-grid renewable power and processing solutions, increased stakeholder awareness and involvement in the project and we have built confidence in the Mineral Resource itself.

“Furthermore, we have been able to reduce and eliminate a number of potential project risks.”

OZ Minerals will continue to sole fund the Nebo-Babel studies until the FS and decision to mine are delivered as per the current agreement.

In respect of any amount funded by OZ Minerals, Cassini will be loan-carried for its 30 per cent contribution, with principal and capitalised interest to be repaid five years after the commencement of production at West Musgrave.

“Completion of the PFS is a significant milestone for the West Musgrave Project and all its stakeholders,” Cassini Resources managing director Richard Bevan said.

“The high quality PFS demonstrates the strategic value of this project by confirming robust economics on a long life, low operating cost copper and nickel mine at the Nebo-Babel deposits.

“The province offers the potential to add value to the project over time with continued exploration and development activities.”

 

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Web: www.cassiniresources.com.au

 

Cassini Resources Advances Mount Squires Gold Project

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) announced final results of recent RC drilling and future work plans at the company’s 100 per cent-owned Mount Squires project in the West Musgrave Province of Western Australia.

Cassini Resources acknowledged the project is at an early stage, but said it is proving to be highly prospective for gold and base metals.

The project is located adjacent to the western border of the company’s West Musgrave JV project with OZ Minerals (ASX: OZL).

All assay results from the RC drilling program at the Handpump prospect, comprising 10 holes for 1,134m, have now been received.

The best results came from holes previously released including:

MSC0003
20 metres at 1.27 grams per tonne gold, including 7m at 2.54g/t gold from 23m;

MSC0004
27m at 1g/t gold from 31m, including 3m at 2.59g/t gold from 38m; and

MSC0005
19m at 0.68g/t gold, including 6m at 1.26g/t gold from 38m.

Cassini explained the remaining four holes (MSC0007-0010) returned lower grade results, but identified additional mineralised breccia halos (>0.1g/t gold), which the company has interpreted to suggest mineralisation remains open.

A recently completed high-resolution aeromagnetic survey has assisted in the company’s geological interpretation of Handpump as well as the surrounding region.

Cassini has refined the target areas along the prospective trend.

Only three RC holes have been drilled outside the immediate Handpump prospect area to test for additional mineralised bodies and therefore the prospective trend is largely unexplored.

Cassini has permitting to clear these targets with a reconnaissance-style drill program underway.

“We’re delighted with the results from our maiden drill program at Mount Squires,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.

“The program, in tandem with our new aeromagnetic data, has demonstrated economic gold prospectivity, improved our geological understanding and generated new targets for future work programs.

“More broadly, it’s highlighted the potential strategic value of a new greenfield, belt-scale project in a new gold frontier.

“Mt Squires is the most advanced gold project in the Musgrave Province, with the nearest gold mine, Gruyere, being over 400 kilometres away, itself a fairly recent ‘new frontier’ discovery.

“New frontiers are where some of the most recent and significant gold discoveries have been made in Australia.

“We see Mount Squires as a natural fit with activities at our West Musgrave project.

“Strategically, we believe gold is a good complement to our base metal assets.

“Our extensive geological knowledge, operational capability and established community relationships provide us with a significant competitive advantage in the region.

Cassini indicated it intends to continue activities at the Mount Squires project until around the end of November, after which it will turn its attention to the Yarawindah Brook nickel-copper project, where a number of new EM conductors are ready to be drilled.

The company also anticipates the delivery of the Nebo-Babel Pre-Feasibility Study in early 2020.

“Whilst the West Musgrave project continues to be our primary focus and long-term value-driver, our exploration strategy at Mount Squires and Yarawindah Brook is geared to provide opportunities for additional new discoveries in the near term,” Bevan continued.

“Our goal is to add value and be exposed to these opportunities through relatively inexpensive exploration programs, that do not compromise our funding capacity during the ongoing study phase of the West Musgrave project.

“With prices near all-time highs, it’s also a great time to exploring for gold.”

 

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Cassini Resources Continues Encouraging Run at Mount Squires

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) continued its recent good run of encouraging RC drilling results from the company’s 100 per cent-owned Mount Squires project in the Musgrave Province of Western Australia.

Cassini Resources declared the latest results have again returned economic mineralisation near surface and extending to shallow depths.

The Mount Squires project is an early stage exploration project that Cassini considers highly prospective for gold, located adjacent to the western border of the company’s West Musgrave JV project with OZ Minerals (ASX: OZL).

Results from another three holes of the 10-hole program have been received and include results of:

MSC0004
27 metres at 1 gram per tonne gold from 31m, including 3m at 2.59g/t gold from 38m; and

MSC0005
19m at 0.68g/t gold, including 6m at 1.26g/t gold from 38m.

“Recent drilling results support the current geological interpretation,” Cassini Resources said in its ASX announcement.

“Mineralisation is hosted within a hydrothermal breccia at the stratiform contact of a rhyolite and overlying (predominantly barren) volcaniclastic unit.

“Mineralised lodes, defined by a 0.1g/t gold halo, strike E-W to ESE-WNW and are near vertical to steeply south dipping.

“Mineralisation is potentially controlled by the intersection of NW-SE and SW-NE trending structures.

“Surface rock chip sampling of the hydrothermal breccia and extrapolation of recent and historical drill results indicates a potential mineralised strike of at least 600m which remains open down plunge.”

Cassini indicated it anticipates receiving results for the remaining four holes over the next couple of weeks.

The company said that regardless of the results, it has been encouraged enough already to begin planning follow-up programs at Handpump and the remaining project area.

The evaluation of recent airborne magnetic survey geochemical data will also inform the company’s decision-making process for the next phase of exploration.

 

Email: admin@cassiniresources.com.au

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Cassini Resources Commences Drilling at Mt Squires Gold Project

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) has commenced RC drilling at the Handpump prospect on the company’s 100 per cent-owned Mount Squires project, located adjacent to the western border of its West Musgrave JV project with OZ Minerals (ASX: OZL) in the Musgrave Province of Western Australia.

Cassini Resources’ Mount Squires project is an early stage exploration project, the company considers highly prospective for gold.

Drilling at the Handpump prospect is now underway that is designed to confirm mineralisation controls and extensions to previous drill intercepts which include a best result of 15 metres at 2.3 grams per tonne gold from 31m within a broader mineralised envelope of 57m at 0.94g/t gold from 14m.

Cassini explained this drilling program represents the first drilling to be undertaken at the Handpump prospect since 2011, prior to Cassini’s ownership.

Simultaneously, a high-resolution aeromagnetic survey has commenced over the northern half of the Mount Squires gold project to assist with structural and lithological mapping which should assist in targeting gold mineralisation in these geological settings.

“Cassini has compiled all previous exploration into a consolidated database and utilised public geological and geophysical datasets to assist with geological interpretation and targeting,” the company said in its ASX announcement.

“This program marks the beginning of the company collecting new data to close the gaps in the existing data sets.

“The company has demonstrated expertise in operating in the region and continues to operate all field activities at the adjacent West Musgrave JV nickel and copper project.”

 

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Cassini Resources Encounters Multiple High-Grade Copper Hits at One Tree Hill

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) declared recording the best results to date from drilling underway at the One Tree Hill prospect within the West Musgrave project (WMP) in Western Australia.

Cassini Resources explained the ongoing exploration program is being funded as part of the company’s Joint Venture Agreement with OZ Minerals (ASX: OZL).

The JV is currently undertaking a Pre-feasibility Study (PFS) on the Nebo-Babel deposits in conjunction with a regional exploration program across the WMP.

The latest results stem form drill hole CZD0099, which returned high-grade results including:

9 metres at 2.56 per cent copper, 0.37 per cent nickel, 0.06 per cent cobalt and 1.32g/t PGE from 344m within a broader disseminated zone of 40m at 1.16 per cent copper from 343m (Zone B)

6.2m at 3.61 per cent copper, 0.11 per cent nickel, 0.03 per cent cobalt and 0.51g/t PGE from 435.8m within 22m at 1.80 per cent copper from 435m (Zone C)

0.75m at 1.71 per cent Ni, 0.52 per cent copper, 0.10 per cent cobalt and 2.67g/t PGE from 133m within 44.7m at 0.35 per cent copper from 116.3m (Zone A).

Cassini described the results as encountering, “the first significant zone of nickel-rich massive sulphides at this prospect”.

Four distinct zones of mineralisation were intersected in the hole:

Zone A. Predominantly disseminated copper mineralisation in a meta-gabbro intrusion starting at 100m below surface.

Zone B. A broad zone of mineralised meta-gabbro with a copper-rich massive sulphide at the top of the unit.

Zone C. A second broad zone of copper-rich gabbro, also with a massive sulphide component at the top of the unit.

Zone D. A very narrow massive sulphide zone that corresponds with the target EM conductor.

“CZD0099 has exceeded our expectations,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.

“We’ve intersected several mineralised zones that were effectively blind to previous geophysical modelling, and this presents real opportunities for further exploration success.

“It’s also worth recognising that whilst this is only our sixth hole at the One Tree Hill prospect, it is showing all the hallmarks of a major mineralised system with the potential to add future mine life and value to the West Musgrave Project.

“The exploration results continue to confirm the excellent prospectivity and potential of the project.”

Cassini indicated it considers high resolution magnetic data very important for future exploration at One Tree Hill, however, the current magnetic data it possesses is relatively coarse and does not allow confident mapping of lithologies and structures at the prospect scale.

This being the case, the company has an airborne magnetic survey planned to be carried out prior to follow-up drilling that will extend west across the tenement boundary into Cassini’s 100 per cent-held Mt Squires project to assist exploration at both projects.

The survey will also extend north east to ensure complete high-resolution coverage of the entire extent between One Tree Hill and Nebo-Babel.

Cassini said it expects the surveying and processing will be completed by the end of July, from which the interpretation of new magnetic data will assist follow-up drill targeting.

The relatively shallow nature of the upper parts of this system means that at least that part is amenable to testing by RC rather than Diamond drilling, which is both faster and cheaper.

 

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Cassini Resources Limited (ASX: CZI)

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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

 

Oz Minerals Meets West Musgrave Earn-In Requriements

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THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) announced that its Joint Venture partner in the West Musgrave Project (WMP), OZ Minerals (ASX: OZL) has satisfied its 70 per cent earn-in requirements.

Cassini Resources explained that under the Earn-in/Joint Venture agreement, OZ Minerals has satisfied the 70 per cent (Stage 2) earn-in milestone by contributing a total of $36 million towards the Nebo-Babel Pre-Feasibility Study (PFS) and regional exploration.

OZ Minerals’ affection for the project is demonstrated by it achieving the earn-in milestone 14 months earlier than required under the agreement.

“OZ Minerals has now notified, and Cassini are satisfied, that this expenditure commitment has been met,” Cassini Resources said.

The PFS for Nebo-Babel remains on track and is scheduled for completion by OZ Minerals late Q2/early Q3 2019, after which OZ Minerals will continue to sole fund the Nebo-Babel Studies until a Definitive Feasibility Study and decision to mine is delivered.

In respect of any amount funded by OZ Minerals in excess of $36 million, Cassini will be loan-carried for its 30 per cent contribution, with principal and capitalised interest to be repaid five years after the commencement of production at the WMP.

On the back of the Cassini announcement, OZ Minerals relayed that following the 2018 infill drilling program undertaken to increase Resource confidence it was able to release an updated Mineral Resource estimate for the Nebo-Babel deposits at the WMP.

OZ Minerals said that the JV’s confidence in the Resource has increased through conversion from the lower, inferred category to the higher, indicated category.

Inferred Resource conversion has resulted in a 26 per cent increase in Indicated Resources to 141 million tonnes.

Indicated Resources now comprise 59 per cent of the total Nebo-Babel Resource.

The 2018 drilling increased the amount of Indicated Mineral Resources at Babel from 73.9 million tonnes in 2017 to 108 million tonnes in 2019.

Indicated Resources at Nebo have remained relatively unchanged from 2017 to 2019, however strategic drilling, including two areas of close spaced drilling, have increased geological understanding of the deposit.

Drilling is continuing at both Nebo and Babel, including resource infill and resource extension.

Drilling of other targets in the area including Succoth and One Tree Hill are part of a separate exploration drilling program being conducted and managed by Cassini under the JV arrangements.

“This is another positive step towards realising the considerable potential of the Musgrave Province,” OZ Minerals chief commercial officer Mark Irwin said.

“Infill and extension drilling is continuing for the Nebo-Babel deposits and the uplift in resource confidence resulting from the 2018 drilling program will feed into our ongoing mine design optimisation.

“Our confidence in the project continues to build and we remain focused on our goal of maximising project value.”

 

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info@ozminerals.com

Website: www.cassiniresources.com.au
www.ozminerals.com

 

OZ Minerals Completes West Musgrave 70% Earn-in

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THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) announced that its Joint Venture partner in the West Musgrave Project (WMP), OZ Minerals (ASX: OZL) has satisfied its 70 per cent earn-in requirements.

Cassini Resources explained that under the Earn-in/Joint Venture agreement, OZ Minerals has satisfied the 70 per cent (Stage 2) earn-in milestone by contributing a total of $36 million towards the Nebo-Babel Pre-Feasibility Study (PFS) and regional exploration.

OZ Minerals’ affection for the project is demonstrated by it achieving the earn-in milestone 14 months earlier than required under the agreement.

“OZ Minerals has now notified, and Cassini are satisfied, that this expenditure commitment has been met,” Cassini Resources said in its ASX announcement.

The PFS for Nebo-Babel remains on track and is scheduled for completion by OZ Minerals late Q2/early Q3 2019, after which OZ Minerals will continue to sole fund the Nebo-Babel Studies until a Definitive Feasibility Study and decision to mine is delivered.

In respect of any amount funded by OZ Minerals in excess of $36 million, Cassini will be loan-carried for its 30 per cent contribution, with principal and capitalised interest to be repaid five years after the commencement of production at the WMP.

 

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Cassini Resources Welcomes New Investor with $7M Placement

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THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) received further support for the company’s West Musgrave project (WMP) from a $7 million placement to institutional, sophisticated and strategic investors.

Cassini Resources said the funds from the placement will be used for working capital throughout the feasibility study stages of the WMP and to progress its exploration stage projects (Yarawindah Brook and Mt Squires) in Western Australia.

The WMP studies are funded by Earnin/JV partner OZ Minerals (ASX: OZL), with OZ sole funding activities at the WMP until the delivery of a Definitive Feasibility Study and decision to mine.

A key cornerstone investor in the placement was Tinci (HK) Limited, a 100 per cent subsidiary of Guangzhou Tinci Materials Technology Co. Ltd, a leading manufacturer and marketer for lithium-ion battery materials.

Tinci Materials was a pioneer electrolyte manufacturer in China for lithium-ion batteries and has established business collaborations with first class international customers.

Tinci Materials is currently conducting a feasibility study on the production of nickel sulphate from nickel sulphide concentrate for the battery industry.

“We are delighted to welcome Tinci (HK) onto our register and look forward to exploring various opportunities between Tinci (HK) and Cassini Resources,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.

“This includes discussions with Tinci regarding potential project off-take funding which will be evaluated alongside our other funding options to realise value for shareholders.

“This investment from Tinci (HK) is further recognition of the size, scale and quality of Cassini’s West Musgrave project and the development and operating reputation of our JV partner, OZ Minerals.”

Cassini said the placement was further supported by existing major shareholders who have a history of project development, off-take and financing of battery minerals assets.

 

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