Cassini Resources Ltd (ASX:CZI) is progressing a PFS at its flagship West Musgrave joint venture project and has exploration plans this year for its Mt Squires gold and Yarrawindah Brook nickel-copper-cobalt projects.
The company is working with JV partner OZ Minerals Limited (ASX:OZL) to extend the West Musgrave PFS due to an expanded scope of work needed to evaluate a number of additional value-add opportunities.
The PFS remains on track for delivery during the current quarter 2020.
Further drilling is also planned at the One Tree Hill and Succoth prospects over the coming year.
The applications are held by Cassini subsidiary Crossbow Resources Pty Ltd, but have been accepted into the JV agreement and the funding structure by OZ Minerals.
Cassini subsidiary Wirraway Metals and Mining Pty Ltd will acquire access and exclusive rights to minerals on the exploration licences with OZ Minerals to reimburse all expenses and acquisition costs.
Consideration for the sale is $250,000 and Traka will retain a 2% Net Smelter Royalty over the tenement areas.
Drilling at Yarawindah
Cassini has recommenced drilling at the Yarawindah Brook project north of Perth following the Christmas-New Year break, with the third hole at Brassica prospect underway.
Once this hole is completed, the rig will move to the main Yarawindah prospect and, subject to visual results, a further six holes are planned.
The sequence of drilling has been timed to accommodate harvest of agricultural crops at each of the targets.
Gold trend at Mount Squires
Results from drilling at Handpump prospect fo the Mt Squires Gold Project have shown a gold trend emerging.
RC results from 10 holes for 1,134 metres returned best results of:
- 20 metres at 1.27 g/t gold, including 7 metres at 2.54 g/t from 23 metres;
- 27 metres at 1.00 g/t from 31 metres, including 3 metres at 2.59 g/t from 38 metres; and
- 19 metres at 0.68 g/t including 6 metres at 1.26 g/t from 38 metres.
The company has now refined target areas along the prospective trend.
Nickel and copper potential
Whilst the Mt Squires is primarily prospective for gold, recent surveying and mapping by Cassini has recognised a potential extension of the magmatic nickel-copper mineralised trend from the West Musgrave project, which could benefit from new electromagnetic surveys.
The surveys are scheduled to be completed at the start of the field season in the second quarter of 2020.
Exercise of employee and director options
During the period Cassini directors and key management personnel exercised 12,250,000 unlisted options, providing $820,750 of funding to the company.
The option exercise includes a $234,000 cash investment from managing director Richard Bevan, $221,000 from chief operating officer Greg Miles, $134,000 from non-executive chairman Mike Young, and $67,000 each from non-executive directors Dr Jon Hronsky and Phil Warren.
The company had $7.8 million in cash and cash reserves as at December 31, 2019.