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.
The Project features:
· Low technical risk due to open pit mining methods and con
ventional processing of ore;
· An operating cost profile at the lower end of existing nickel and copper producers;
· An initial mine life >8 years with scope to increase this to beyond 15 years; and
· A large-scale deposit, producing high quality nickel, copper and cobalt metal concentrates.
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.
Outcomes from a further Scoping Study announced in November 2017 confirm the positive economic viability for a large, low cost mine, while de-risking key technical aspects including metallurgy and non–process infrastructure costs.
The Study evaluated several development scenarios and determined that a 10+Mtpa operation provides the most favourable project economics. Average annual production estimated to be 20-25Kt of nickel and 25-30Kt of copper in concentrate. The first three years of production are also expected to be higher with potential for 25-30Kt Ni and 35-45Kt Cu in concentrate, improving Cassini’s capital payback period. The Nebo-Babel Mineral Resource estimate was completed during the Study by independent resource consultancy, Golder Associates Pty Ltd (Golder Associates).*
Following a 53km infill drilling program throughout 2018, project JV partner OZ Minerals released an updated Mineral Resource estimate for the Nebo-Babel deposits. The estimated Mineral Resource for the Nebo-Babel deposits is summarised below, reported in accordance with the 2012 edition of the JORC code.
|Nebo + Babel||Total||238||0.35||0.38||129||0.06||0.10||0.09|
(Table subject to rounding)
Mineral Resources reported within a A$24 NSR pit shell and at 0.25% Ni Cut-off. Refer to the Mineral Resource Statement and Explanatory Notes for full details https://www.ozminerals.com/uploads/media/190412_ASX_Release_-_OZL_Nebo-Babel_Mineral_Resource_Statement.pdf
* Further information regarding the West Musgrave Project Scoping Study outcomes refer to the Cassini Resources ‘ASX Release entitled ‘Positive OZ Minerals Decision & Scoping Study Results’ dated 14 November 2017 on the company website page: www.cassiniresources.com.au/investor-relations/asx-announcements
The new estimate has provided greater confidence in the resources through a 26% increase to the higher Indicated resource category from the lower confidence Inferred category.
A pre-feasibility study (PFS) is underway managed by JV partner OZ Minerals Ltd, while Cassini continues to manage on-ground activities associated with the PFS and the regional exploration program.