The Nebo and Babel deposits (jointly referred to as Nebo-Babel) are the largest nickel-sulphide discovery since Voisey’s Bay in Canada in 1993 and the first major discovery in the West Musgrave region.
· A large-scale deposit, of high quality nickel, copper and cobalt metal concentrates.
· Low technical risk due to open pit mining methods and conventional processing of ore;
· An initial mine life ~26 years, with throughput at 10Mtpa; and
· An operating cost profile at the lower end of existing nickel and copper producers.
In April 2015 a positive Scoping Study was completed for Nebo-Babel demonstrating a technically robust project with a long initial mine life; low operating cost profile; and high-quality product.
A further Scoping Study in November 2017 confirmed the positive economic viability for a large, low cost mine, while de-risking key technical aspects including metallurgy and non–process infrastructure costs.
A 53km infill drilling program was conducted throughout 2018 increasing resource confidence with JV partner OZ Minerals releasing an updated Mineral Resource estimate for the Nebo-Babel deposits in April 2019.
The West Musgrave JV Project released the results of the Nebo-Babel Pre-feasibility Study (PFS) in February 2020 together with an updated Mineral Resource and maiden Ore Reserve following drilling undertaken from December 2018 to September 2019.
The PFS demonstrating a long life ~26 year open pit nickel sulphide and copper mine, with a low carbon footprint operation and robust economics.
A maiden Ore Reserve of 220Mt (100% Probable) at 0.36% Cu and 0.33% Ni and annual production of ~22,000tpa nickel and ~28,000tpa copper* in concentrates, supporting the first 22 years of the 26 year life of mine (LOM). The balance of the mine life underpinned by a combination of Indicated and Inferred Mineral Resource.
The Nebo-Babel deposits in the lowest quartile of forecast global nickel producers. The PFS completion represents significant technical de-risking and a valuation milestone for the Company.
Cassini is not required to contribute to the West Musgrave Project costs until a Bankable Feasibility Study is delivered by partner OZ Minerals.
The Project focus will now be on critical path activities including government approvals, engineering partner selection, field activity preparation and further drilling to increase the amount of higher confidence Mineral Resource.
*Production targets to be read in conjunction with the production targets cautionary statement outlined in the OZ Minerals announcement titled West Musgrave Pre-Feasibility Study - a low carbon, long-life, low-cost mine”, released on 12 February 2020 and available at: www.ozminerals.com/uploads/media/200212_OZL_ASX_Release_-_West_Musgrave_PFS.pdf