West Musgrave Project

(Cassini 30%, OZ Minerals Ltd 70%)

Since acquiring the WMP in 2014, Cassini has focused on improving the geological and technical understanding of the Project, and progressing the Nebo-Babel deposits through to a positive Scoping Study outcome. The study demonstrates the strong potential to become a low cost (first quartile) nickel/copper operation with an anticipated initial mine life of over 15 years. The Joint Venture with OZ Minerals enables Nebo-Babel 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 study released in April 2015, with further optimisation results released in April 2016. 

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.

A Scoping Study released in November 2017, examining the project scale options and management of technical risk delivered positive economics for a large, low cost mine. Nebo-Babel proceeding to a Pre-Feasibility Study (PFS) managed by OZ Minerals.

In April 2019, OZ Minerals completed their obligation for 70% (Stage 2) earn-in milestone by contributing a total of $36m towards the Nebo-Babel Pre-Feasibility Study (PFS) and regional exploration

The PFS for Nebo-Babel is scheduled for completion by OZ Minerals late Q2/early Q3 2019, with a study update to be released shortly thereafter.

OZ Minerals will continue to sole fund the Nebo-Babel Studies until a Definitive Feasibility Study and decision to mine is delivered. In respect of any amount funded by OZ Minerals in excess of $36M, CZI will be loan-carried for its 30% contribution, with principal and capitalised interest to be repaid 5 years after the commencement of production at the WMP.

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.


 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