West Musgrave project background
West Musgrave Project is the largest undeveloped nickel-copper project in Australia with a resource of more than 1 million tonnes of contained nickel and 2 million tonnes of contained copper.
The project is a new mining camp with three existing nickel and copper sulphide deposits and a number of other significant regional exploration targets.
The West Musgrave project includes a number of deposits
The joint venture partners are currently undertaking a PFS on the Nebo-Babel deposits while undertaking a concurrent regional exploration program.
Cassini recently discovered a significant new body of mineralisation, named the Angie lode, to the east of the Nebo deposit.
As part of PFS resource infill drilling, a number of holes have been designed to target potential high-grade extensions of mineralisation at Nebo.
Highlights include 5.6 metres at 2.68% nickel, 2.09% copper, 0.09% cobalt and 0.33 g/t platinum group elements (PGE) within a broader zone of 50.35 metres at 0.62% nickel, 0.54% copper, 0.02% cobalt and 0.15 g/t PGE.
The Angie lode is located close to, but outside of, the current mine design and may extend over 550 metres of strike length, with follow-up drilling now being planned.
The company also drilled an 80-meter zone of nickel-copper sulphide mineralisation at the Yappsu prospect within the West Musgrave Project.
This is the second significant intersection assayed in recent diamond drilling at Yappsu.
Within the broader 80-meter intersection, 5.75 metres at 0.28% nickel, 0.63% copper, 0.01% cobalt, 0.30 g/t PGEs and 0.15 g/t gold from 545 metres was intersected.
In August 2018, Cassini completed a $4.2 million placement to high-quality investors, adding Guangzhou Tinci Materials Technology Co Ltd chairman Xu Jinfu as a cornerstone investor as it progressed the West Musgrave project PFS.
While OZ Minerals is funding the PFS, the $4.2 million capital raising is expected to help Cassini fund activities over the next 6 to 12 months as it continues exploration at its other projects.
Cassini managing director Richard Bevan told Proactive Investors the placement would provide the company with working capital during what he called the current funding phase.
The company plans to continue exploration at its other Western Australian projects during the 12-month period.
This includes the Mt Squires Gold Project in West Arunta region and the Yarawindah Nickel-Copper-Cobalt Project to which it holds a right to acquire a 70% stake.
Last week, Cassini began a 2,000-metre reverse circulation (RC) drilling program at its wholly-owned West Arunta Zinc Project.
Drilling will test new undrilled sedimentary zinc targets at the Janus and Mimas prospects.
The targets were generated from airborne electromagnetic and gravity surveys as well as soil geochemistry exploration.
Focusing on rising battery metal demand
The timing for delivery of the West Musgrave Project to production by 2022 looks to be spot on to meet the increasing demand from electric vehicles and battery markets.
Cassini’s managing director Richard Bevan said: “Our West Musgrave Joint Venture has had several recent successes with new discoveries at Nebo, Babel and Yappsu.
“The pre-feasibility study is well on track and we look to provide further updates on this shortly.
“Now we’ve commenced a drill program to look for a new zinc province in one of the last mineral frontiers in Australia.
“Our strategy is to provide our shareholders exposure to both short-term exploration success and the medium-term development of a nickel-copper-cobalt sulphide project, timed perfectly to capture rising battery metal demand.”