West Musgrave Project

(CZI 100%, with Oz Minerals Ltd earning-in up to 70%)

Since acquiring the WMP in 2014, Cassini has focused on improving the geological and technical understanding of the Project, and progressing the Project through to a positive Scoping Study in April 2015 which was further optimised, with results released in April 2016. These studies demonstrated strong potential to become a low cost (first quartile) nickel/copper operation with an initial mine life of over 15 years. The Joint Venture with OZ Minerals enables the Project to be progressed to a decision to mine, leveraging OZ Minerals’ significant funding and development capability.

The West Musgrave Project (WMP) is located in a geologically exciting and relatively underexplored region of Western Australia that is highly prospective for nickel-copper-PGE sulphide deposits and gold. The project area was first subjected to modern exploration by BHP Billiton in the mid 1990’s, which culminated in the discoveries of the Nebo and Babel (Nebo-Babel) nickel and copper sulphide (Ni, Cu) deposits in 2000, and later, the Succoth copper (Cu) deposit in 2013.

Cassini Resources acquired the WMP from BHP Billiton in 2014, and has since progressed the project by conducting regional exploration, in-fill drilling and further geological interpretation of new and historical data to key projects within the mineral rich province.

The Company confirmed the economic viability of the Nebo-Babel deposits by a positive Scoping Study released in April 2015, with further optimisation results released in April 2016. The studies demonstrated strong potential to become a low cost (first quartile) nickel/copper operation with an initial mine life of over 15 years.

In October 2016 Cassini Resources Limited executed a Joint Venture Agreement with leading Australian resources company OZ Minerals Limited (ASX:OZL) to fast track development of the Company’s West Musgrave Project (WMP) located in Western Australia. The West Musgrave Project encompasses the Nebo-Babel nickel and copper sulphide deposit, together with the Succoth copper deposit.

Under the agreement, OZL has been granted the right to farm-in to the West Musgrave Project by sole funding a minimum of $36 million of development and exploration expenditure, including completion of a Definitive Feasibility Study (DFS), for a 70% interest in the Project. The agreement includes a minimum $28m funding for continued studies on Nebo-Babel to progress it to a “Decision to Mine”, as well as a minimum regional exploration spend of $8 million to assist in identifying additional value adding opportunities.

Should OZ Minerals complete their obligations to earn a 70% joint venture interest, Cassini will have the right to maintain its 30% interest by contributing to ongoing expenditure on a pro rata basis or dilute under standard industry terms.

Importantly, Cassini will remain as the operator of the Project until the end of the Prefeasibility Study stage.

The JV will fund the continued development and exploration of the WMP, and provides a clear pathway to a decision to mine and potential cash flow for Cassini.

 

KEY AGREEMENT TERMS   
 STAGE REQUIREMENTS JV INTEREST
EARNED (%)
TIMEFRAME
OF EARN IN 
 Initial minimum commitment - $3m Further Scoping Study; plus
- Provision of two full time OZ Minerals technical staff
 0%  Up to 12 months
 Stage 1 - $15m expenditure towards PFS/DFS; plus
- $4m regional exploration
 51%  Up to 18 months
 Stage 2 - $10m expenditure towards DFS; plus
- $4m regional exploration
 70%  Up to 12 months
 Total - $36m on project development; plus
- Provision of two full time OZ Minerals technical staff
 70%  

 

 

 

WEST MUSGRAVE PROJECT (Ni, Cu) Gallery