Resource World Magazine

J U N E / J U L Y 2 0 1 9 www.resourceworld.com 33 Australian Update by Greg Barns A t the time of writing this article Perth-based Cassini Resources [CZR-ASX; ICR-FSE] was trad- ing at AUD $0.10. But it's a company with plenty of upside when you take a look at its flagship West Musgrave nickel and cop- per project in Western Australia. This project has attracted a major Australian miner, OZ Minerals Ltd. [OZL- ASX], which, in 2016, signed an AUD $36M agreement to earn in 70% of the project, a milestone it reached earlier this year, well ahead of schedule. The West Musgrave Project is also attracting battery investment. The project is located near Warburton in the mid-east of Western Australia. The region is relatively underexplored and is highly prospective for nickel-copper-PGE sulphide deposits and gold. BHP worked the area around 25 years ago and it dis - covered the project. In 2000 it discovered the Nebo and Babel (Nebo-Babel) nickel and copper sulphide deposits. Cassini Resources acquired the project in 2014. In 2016, OZ Minerals entered the pic - ture with a commitment to spend AUD $36M which would earn it a 70% interest in the project. Fourteen months ahead of schedule, Cassini Resources announced that OZ Minerals had satisfied the 70% earn-in milestone using the AUD $36M to fund the Nebo-Babel Pre-Feasibility Study, due for release shortly, and by undertak - ing regional exploration at the project. OZ Minerals will continue to sole-fund the Nebo-Babel studies until a definitive feasibility study and decision to mine is delivered. Cassini Resources says that in respect of any amount funded by OZ Minerals in excess of AUD $36 million, Cassini will be loan-carried for its 30% contribution, with principal and capital - ized interest to be repaid five years after the commencement of production. On April 12 of this year, OZ announced increases in the size and confidence level of the Neo-Babel deposits. This was follow - ing a 53-km infill drilling program during 2018. The inferred resource conversion has resulted in a 26% increase in indicated resources to 141 million tonnes of 0.36% nickel and 0.38% copper, with indicated resource now representing 59% of total Nebo-Babel resources. The inferred cat - egory is at 98 million tonnes of 0.34% nickel and 0.38/% copper. The West Musgrave Project currently has a resource of 828,000 tonnes of nickel and 908,000 tonnes of copper. The recommended 10 mtpa mine would produce around 25,000 tonnes of nickel and 30,000 tonnes of cop - per per year. OZ Minerals Chief Commercial Officer, Mark Irwin, said that the increased confi- dence in the resources "is another positive step towards realizing the considerable potential of the Musgrave Province. Infill and extension drilling is continuing for the Nebo-Babel deposits and the uplift in resource confidence resulting from the 2018 drilling program will feed into our ongoing mine design optimisation. The time table for the project is to have a Definitive Feasibility Study completed by late 2020 with construction and then production over 2021-2023. But not only has Cassini Resources attracted OZ Minerals to the West Musgrave Project, it also now has on its books Hong Kong-based Tinci (HK) Limited, a 100% subsidiary of Guangzhou Tinci Materials Technology. Tinci Materials is one of China's largest lithium- ion battery electrolyte manufacturers and is currently conducting a feasibility study for the production of high-quality nickel sulphate from nickel sulphide concentrate for the battery industry. Tinci participated in a recent AUD $7M placement to Asian investors. Cassini Resources CEO, Richard Bevan, says that his company will hold "dis - cussions with Tinci regarding potential project offtake funding which will be eval- uated alongside our other funding options to realise value for shareholders." One of Australia's most experienced resource watchers, Barry Fitzgerald, recently noted that the West Musgrave Project is in a sweet spot when it comes to the emerging EV market. "Sulphide nickel like that to be produced at West Musgrave is a key component of the lithium-ion tech - nology underpinning the EV and battery storage revolution, while copper demand also benefits from a greater intensity of use in EVs," Fitzgerald wrote on April 15. n OZ Minerals earns in from Cassini Resources at West Musgrave Project ❝Sulphide nickel like that to be produced at West Musgrave is a key component of the lithium-ion technology underpinning the EV and battery storage revolution, while copper demand also benefits from a greater intensity of use in EVs…❞ – Barry Fitzgerald

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