Cassini Resources Limited (ASX:CZI) has released the activities report for the quarter ended 31 March 2020, highlighting achievements at its development and exploration projects.
The precious and base metals developer and explorer based in Perth holds a 30% stake in the flagship West Musgrave Project (WMP), Australia’s largest undeveloped nickel/copper deposit. The West Musgrave Project shares its boundaries with yet another gemstone of CZI, the wholly owned Mount Squires Gold Project. The Company also owns an 80% stake in the Yarawindah Brook Project, prospective for Ni, Cu, Co and PGE.
Activities report highlighted the following events during the quarter:
- Completion of important milestone, PFS into West Musgrave Project
- Maiden drilling program completed at the Yarawindah Brook Project
- Environmental and heritage permits for Mount Squires Gold Project for future exploration programs
- CZI response to the current COVID-19 outbreak
West Musgrave Project Exceptional PFS Completed
Cassini Resources recognised the completion of the Pre-Feasibility Study (PFS) as a significant milestone for the Company. CZI and OZ Minerals (ASX:OZL), the co-owners of the West Musgrave Ni-Cu Project, together progressed on the nation’s largest undeveloped Ni-Cu project.
The PFS focused on the Nebo-Babel deposits resulted in long economic life of 26 years, operating at large-scale producing over 27 kilotonnes a year of Nickel and 33 kilotonnes a year of Copper during the initial 5-year period of operation at extremely low C1 cash costs of ~US$(0.90)/lb Cu and ~US$1.30/lb Ni.
Some of the PFS Outcomes are as follows -
- Life of operation increased to over 26 years
- Average annual production of ~28,000 tpa Cu and ~22,000 tpa Ni
- Low C1 cash cost operation of ~US$1.30/lb Ni and ~US$(0.90)/lb Cu
- Excellent Project Economics- NPV ~$800 million and IRR of ~20%
- Ore Reserve of 220 Mt with a grade of 0.36% Cu and 0.33% Ni
- Application of renewable power, adding efficient and greener touch
- Open pit mining method, minimising the project’s capital requirement
For an in-depth look into the PFS outcomes, do read PFS Results for Cassini Resources’ Cu-Ni Project Confirm Excellent Economic
The Company is currently engaged in negotiations with potential investors, raising funds via debt financing, offtake agreements and streaming contracts. Both Nickel and Copper are extensively used by electric vehicles and CZI is striving to tap on the battery revolution opportunities and world demand for electrification metals.
New Targets/Prospects for Yarawindah Brook Ni-Cu-Co-PGE Project
Cassini Resources completed a maiden 1,148 metres drilling program, focusing on the EM conductors identified from the airborne and ground electromagnetic surveys of 2018, at the project.
Avena Prospect: Drilling activities at the Avena prospect focused on the near-surface supergene PGE mineralisation. The assay results for the Avena prospect (YAD0004 to YAD0006) intersected wide zones of shallow and dispersed Copper and Nickel sulphide mineralisation with high-grade, massive nickel sulphide zones.
The assay results revealed high-grade massive sulphide intersection such as-
- YAD0005- 0.12 metres @ 5.97% Ni, 0.75% Cu, 0.39% Co & 2.66g/t PGE, 84.3 metres downhole
- YAD0006- 5.05m @ 0.69% Ni, 1.17% Cu & 0.06% Co, 57.95 metres downhole
Brassica Prospect: The drill hole (YAD0003) intersected a 70 metres wide zone of metagabbro with disseminated semi-massive zones of iron sulphides (pyrrhotite) and trade copper sulphides (Chlcopyrite).
Ovis Prospect: A new prospect named “Ovis” with strong Ni-Cu-PGE sulphide mineralisation was identified, with the 3 diamond drilling holes at the prospect targeting the shallow Ni-Cu sulphide mineralisation, which remains open along the strike. The Company aims to combine results from the geochemical, geological and electromagnetic studies in near future.
Multiple Copper and Nickel anomalies across the prospect were identified and the Company expects strong mineralisation with 50+ metres thickness, highlighting association of massive nickel sulphide mineralisation with the volcanic origins.
Underexplored Prospective Zone – The Company announced the expansion of project area to 400 square kilometres and it is to be noted that the Yarawindah project is located in the New Norcia Nickel province, which observes the Chalice Gold’s Julimar Ni-Cu-PGE mega discovery. A larger project area maximises the prospectivity of the Yarawindah project.
Out of the historic exploration programs in the region, only 8% of the total ~840 wells have been drilled and assayed, with depth greater than 50 metres. CZI plans to carry out extensive and efficient exploration programs, drilling and assaying the prospects for Ni-Cu prospectivity.
The Company has been simultaneously evaluating the drill targets and worked on a grass-root exploration program to identify future possible prospects. In addition, a soil geochemistry program collecting over 1,041 samples is being analysed in Perth. A surface fixed loop electromagnetic (EM) survey is underway over the central Yarawindah region, expected to conclude by the end of April 2020.
Mount Squires- The Gold Asset
The Mount Squires project shares boundaries with the One Tree Hill prospect of the West Musgrave project and is the only active gold exploration project in the entire Musgrave province. The Company believes that the proximity of the two key assets could help complement the two operations upon development.
During the March quarter, Cassini Resources received the environmental and heritage permits for drilling program on the trending gold trend.
In 2019, a maiden 1,134 metres RC drilling was completed at the Handpump prospect of Mount Squires, indicating shallow gold mineralisation.
Some of the results of the 2019 exploration program at Handpump prospect are -
- MSC0003 - 20m with 1.27 g/t Au, including 7m with 2.54 g/t Au;
- MSC0004 - 27m with 1.00 g/t Au, including 3m with 2.59 g/t Au;
- MSC0005-19m with 0.68 g/t Au including 6m with 1.26 g/t Au.
The maiden exploration program focused on the Handpump prospect and included only 3 RC drilling holes outside the prospect. The Company has identified further exploration targets for the upcoming drilling program along the structural trend.
Advanced electromagnetic survey in combination with reprocessed geochemistry data is expected to be utilised for more precise identification of targets. In addition, the electromagnetic survey is anticipated to be completed soon.
Response to COVID 19 Pandemic
In response to the global outbreak, Cassini Resources has strategized to continue with the business growth, but in compliance with the state and federal government directives on the health and travel.
At the West Musgrave Project, the Company has suspended all field operations prior to the federal government’s announcement allowing only essential services in the region. Although ground activities have been paused, critical activities including environmental and heritage permitting process are in full swing.
With Mount Squires located in the vicinity of WMP, the travel restrictions are also implied on the project, but no impact whatsoever has been observed to the proposed work schedule.
For the Yarawindah Brook Project, regional travel restrictions do not imply on the project area, thus its progress is likely to continue through the June quarter.
CZI would continue to generate value at its projects in every possible way during the outbreak, following health and safety protocols by the governments.
Stock Information – CZI closed the day’s trade at $0.095 on 23 April 2020, moving upward by 3.261% from its previous close. In the last one month, the stock has delivered a return of 55.93%.
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