The hype around the electric mobility and battery materials which earlier seem like a bubble has now already started to shape up on the ground in the current market conditions. The market share of electric vehicles is increasing in almost all major economies with Norway leading the pack at 46%.
Almost all mining majors have joined the race for battery materials and time seems right for Cassini Resources Limited (ASX:CZI) to curate its portfolio of critical projects, serving to the market demand in future.
The Company owns a 30% interest in the CZI-OZL JV developing the West Musgrave Ni-Cu-Co project, the largest undeveloped Ni-Cu project in Australia. CZI is also progressing on the Yarawindah Brook Project (CZI 80% stake and rest 20% owned by Mr Scott Wilson) and Mt Squires Gold Project (CZI 100%).
How was the last quarter for Cassini Resources: Read here
Yarawindah Brook Project: Another Gem in Polishing
Yarawindah Brook project, on an agricultural land, is located almost 130 kilometres Northeast of Perth. The project lies on the prospective ground for Nickel, Cobalt and Copper and extensive drilling for the mining property is ongoing.
Project Progress till date:
- Initial drilling intersects Ni and Cu-bearing Sulphides, hosted by the mafic mineralisation
- Diamond drilling programs already underway
- Results indicating multiple intrusions
The Yarawindah project has limited Nickel, Copper and Cobalt exploration, despite a favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation.
As per historical exploration, the platinum and palladium enrichment in the superficial heterogenous layer indicates the possibility of a large nickel - copper - cobalt sulphides system.
The previous drilling program was in 2007, unveiling-
- 7 metres with 1.29% Ni, 0.21% Cu, 0.06% Co
- 3 metres with 2.70% Ni, 0.80% Cu, 0.19% Co
CZI recently undertook the first-ever diamond drilling program at the project, targeting various electromagnetic anomalies from the airborne and ground electromagnetic surveys of 2018. Historical drilling focused only on the main Yarawindah Prospect and targeted only the shallow, supergene platinum and palladium mineralisation.
As per the current understanding, following factors go in favour of the Yarawindah project-
- Mining Method – Shallow mining allows low-cost open cut operations
- Strip Ratio – Low strip ratio means less waste handling & mining expenses
- Revenue Streams – Multiple commodities allow significant by-product credits, so low OPEX
The first two drilling holes intersected over 50 metres of metagabrro, which have intruded into and are intercalated with pyrrhotite- and pyrite bearing mafic and felsic country rock gneisses. The project is still at a very early stage of exploration and would develop over time before reporting any possible economic mineralisation.
Brassica Prospect
The first two drill holes intersected over 50 metres thick mineralisation containing traces of Pentlandite ([(Fe,Ni)9S8]) and Chalcopyrite (CuFeS?). The Brassica prospect or the XC05 Conductor is located almost 4km to the southwest of the main Yarawindah Prospect.
Early Results from Drilling at the Yarawindah Project: Must Read
Assay results confirmed promising intercepts of 1.1 metres with 0.50% Ni, 0.10% Cu & 0.08% Co, 92.9 metres downhole in the hole YAD0002, and 0.7 metres with 0.09% Ni, 1.46% Cu & 0.02% Co, 71.4m downhole in hole YAD0001.
Future Steps
Drilling at Yarawindah has resumed, and the third hole drilling is already underway. On completion of the third drilling hole, other targets at main Yarawindah pit would be focussed thereafter to work on the AN01 & AN02 conductors, which are believed to be extensions to previously identified mineralisation such as 7m @ 1.30% Ni and 0.22% Cu in YWRC0083.
Downhole Electromagnetics (DHEM) will survey all the drill holes to assist in identifying and scheduling further targets. The drilling schedule has been planned considering the crop harvest at each of the drilling targets.
Though Yarawindah is an early exploration project, it might propose the possibility of presence of multiple commodities from multiple deposits assuring low cost and long life. Cassini Resources holds a portfolio of promising projects and continues to explore and develop them.
Stock Information: The CZI stock last traded at $ 0.110 on 6 February 2020, up 22.222% from its previous close. The company has a market cap of $ 47.05 million. The last one-year return of the stock stands at 12.50%.
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