Oz Minerals advances Cassini joint venture

OZ Minerals has progressed its joint venture with local explorer Cassini Resources at the West Musgrave nickel-copper project after positive results in a further scoping study.

Stage two of the farm-in agreement allows OZ Minerals to earn a 51 per cent stake in West Musgrave, which is located south of Jameson, with an investment of $19 million.

In a joint statement, the companies announced the project would move to a pre-feasibility study after a study examining scale options indicated the viability of a large, low-cost mine.

“The scoping study advances the development of the Nebo-Babel deposits,” Cassini managing director Richard Bevan said.

“The increased scale of the project has opened up a range of possibilities beyond what we had originally contemplated, with potential for further upside to be realised in the upcoming PFS.

“We have an initial eight years of mine life with clear view on increasing this to beyond 15 years.

“The exploration program will expand our understanding of the mineralisation at One Tree Hill and the Succoth copper deposit, as we pursue our goal of establishing a multi-decade mining operation.”

Oz Minerals will have the right to a 70 per cent stake in the project with an overall investment of $36 million.

Oz Minerals chief executive Andrew Cole said the project was an exciting prospect.

“The further scoping study has confirmed the economic viability of the Nebo-Babel project and has increased our confidence in the potential of the project,” he said

“This is an exciting new mineral province with attractive near mine and district opportunities.

“Investment will be made during the pre-feasibility to focus on inferred to indicated resource conversion for inclusion into the mining inventory thereby extending mine life within the current pre-production capital profile.”