The West Musgrave Project is a large undeveloped nickel and copper asset located in the Musgrave region of Western Australia.
OZ Minerals can earn up to a 70% interest in the project by sole funding a minimum of $36 million on development and exploration.
This provides Cassini with free-carry through completion of a definitive feasibility study and decision to mine.
The initial earn-in will see OZ Minerals commit up to $3 million on further scoping studies as well as test a number of regional exploration targets over a 12 month period.
Field work, including drilling, is on track to commence in the first week of November.
Initial work program
The initial work program will include:
- Exploration drilling targeting Succoth and One Tree Hill Prospects;
- Metallurgical program to optimise nickel and copper recoveries and progress geometallurgical model;
- Resource definition drilling of high-grade zones at Nebo-Babel;
- Further studies on infrastructure, energy alternatives and mine planning; and
- Initial drill program to start in early November.
Exploration drilling details
Cassini has won government grants valued up to $148,5000 to drill a diamond hole at the Babylon prospect, which is part of the broader Succoth deposit measuring 156 million tonnes at 0.6% copper.
Babylon has the potential to host massive sulphides and in particular, nickel sulphides.
The One Tree Hill prospect is located about 13 kilometres from the Babel deposit and is associated with a major regional structural intersection.
A single hole will be drilled to test an identified conductor.
Resource definition drilling
A number of targets at Nebo-Babel represent an opportunity to increase the size of the existing high grade domains within the deposits, and thus increase the overall grade of the resources.
Examples of these targets include massive sulphide zones at Nebo, extensions to the Startmeup Shoot at Babel and definition of the roll-over zone at Babel.
The reverse circulation program will comprise circa 2,000 metres and will commence at the start of the 2017 field season.
SPP opens today
Cassini Resources will give current shareholders the opportunity to purchase additional shares as part of a share purchase plan (SPP) priced at $0.045 to raise up to $2.5 million.
Funds raised under the SPP will be used to support exploration activities that do not form part of the OZ Minerals farm-in joint venture and provide working capital.
Eligible shareholders, irrespective of the size of their shareholding, are allowed the opportunity to acquire shares worth a total of either $2,000, $5,000, $10,000 or $15,000.
The key dates for the SPP are as follows:
Offer opens: Wednesday 19 October 2016;
Offers closes (5.00 pm WST): Monday 7 November 2016; and
Issue of new shares under SPP: Monday 14 November 2016.