Nebo-Babel

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.

Nebo-Babel mapThe 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 Indicated and Inferred Mineral Resource (0.25% Ni cut-off) as at 12 April 2019
DepositCategoryTonnes
(Mt)
Ni
(%)
Cu
(%)
Co
(ppm)
Au
 (ppm)
Pd
 (ppm)
Pt
 (ppm)
Nebo Indicated 33 0.45 0.40 180 0.05 0.09 0.07
Inferred 2 0.36 0.39 170 0.04 0.08 0.07
Total 34 0.44 0.40 179 0.04 0.08 0.07
Babel Indicated 108 0.33 0.38 120 0.06 0.10 0.09
Inferred 96 0.34 0.38 120 0.07 0.11 0.09
Total 204 0.34 0.38 120 0.06 0.10 0.09
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.

 

Nebo-Babel - Western Australia Gallery