1 ASX Announcement 9 December 2013 Cassini Acquires Significant Base Metals Project in WA • Cassini to acquire up to 75% of the West Arunta Project (X17) • Highly prospective target in an unexplored region of WA • Prospective for base metal mineralisation (coppergold and leadzinc) • Project identified with market leading exploration targeting methodology • Very large (40km x 20km) geochemical anomaly identified coincident with an intersection of major geological structures • Cost effective early stage exploration will identify potential drill targets • Clear, simple exploration milestones for progression • Staged transaction; initial vendor payments and work covered by existing cash • Native Title and Land Access agreement complete Cassini Resources Limited (ASX:CZI) (“Cassini” or the “Company”) is pleased to announce it has executed a Share Sale Agreement to earn up to 75% of Crossbow Resources Pty Ltd (“Crossbow”), which owns 100% of the West Arunta Project (“X17” or the “Project”) in Western Australia. Managing Director Richard Bevan said “We see the X17 project as an exciting, highly prospective greenfields exploration prospect. The project has been generated through the same rigorous exploration targeting process as our West Musgrave Project, and is consistent with our strategy of identifying projects with large scale potential in underexplored, frontier regions of Western Australia.” Chairman Mike Young said, “Our Company is proud of our simple, no nonsense approach to exploration. We have clear, simple milestones that support a progression to discovery as can be seen with the success at the West Musgrave where we developed then proved up a geological model. The X17 project is an exciting prospect given its structural setting and geochemical fingerprint. This is truly the last frontier of greenfields exploration in Australia where sadly, too little of it is occurring.” The X17 Project is located in the Gibson Desert region of northeastern Australia and is considered prospective for two major geological targets: a) Mt Isaage, intrusion hosted, CuAu deposits in the northern part of project; and b) Niftyage, sedimenthosted, basemetal deposits (either Cu or PbZn) in the south. X17 is located at a major tectonic intersection of the juncture of Central Australian Suture with a NE trending crosscutting structural zone, known as the Lake Mackay or the TopUp Rise Fault. There is known For personal use only
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
ASX Announcement 9 December 2013
Cassini Acquires Significant Base Metals Project in WA
• Cassini to acquire up to 75% of the West Arunta Project (X17)
• Highly prospective target in an unexplored region of WA
• Prospective for base metal mineralisation (copper-‐gold and lead-‐zinc)
• Project identified with market leading exploration targeting methodology
• Very large (40km x 20km) geochemical anomaly identified coincident with an intersection of major geological structures
• Cost effective early stage exploration will identify potential drill targets
• Clear, simple exploration milestones for progression
• Staged transaction; initial vendor payments and work covered by existing cash
• Native Title and Land Access agreement complete
Cassini Resources Limited (ASX:CZI) (“Cassini” or the “Company”) is pleased to announce it has executed a Share Sale Agreement to earn up to 75% of Crossbow Resources Pty Ltd (“Crossbow”), which owns 100% of the West Arunta Project (“X17” or the “Project”) in Western Australia.
Managing Director Richard Bevan said “We see the X17 project as an exciting, highly prospective greenfields exploration prospect. The project has been generated through the same rigorous exploration targeting process as our West Musgrave Project, and is consistent with our strategy of identifying projects with large-‐scale potential in under-‐explored, frontier regions of Western Australia.”
Chairman Mike Young said, “Our Company is proud of our simple, no nonsense approach to exploration. We have clear, simple milestones that support a progression to discovery as can be seen with the success at the West Musgrave where we developed then proved up a geological model. The X17 project is an exciting prospect given its structural setting and geochemical fingerprint. This is truly the last frontier of greenfields exploration in Australia where sadly, too little of it is occurring.”
The X17 Project is located in the Gibson Desert region of north-‐eastern Australia and is considered prospective for two major geological targets:
a) Mt Isa-‐age, intrusion hosted, Cu-‐Au deposits in the northern part of project; and
b) Nifty-‐age, sediment-‐hosted, base-‐metal deposits (either Cu or Pb-‐Zn) in the south.
X17 is located at a major tectonic intersection of the juncture of Central Australian Suture with a NE trending crosscutting structural zone, known as the Lake Mackay or the Top-‐Up Rise Fault. There is known
For
per
sona
l use
onl
y
2
copper-‐gold mineralisation located along strike to the east (Mt Webb and Pokali prospects), and to the north, where Corazon Mining Limited have identified copper sulphides at their Top Up Rise Project
Recent analysis of the existing Geological Survey of Western Australia’s (“GSWA”) West Arunta geochemical data set indicates a large (40 x 20km) surface lead (Pb), arsenic (As) and antimony (Sb) anomaly. These elements are commonly associated pathfinder elements for hydrothermal gold and base metal mineralisation. There has been some historical sub-‐surface validation of the anomaly provided by Pb and Zn anomalous aircore drill results located at its margin, but the primary anomaly has never been drilled and remains untested.
The geochemical anomaly is considered consistent with the signature of a world-‐class mineral system in context of current sampling performed.
Figure 1. Project Location – X17
For
per
sona
l use
onl
y
3
West Arunta Project X17 in Detail
The X17 Project was generated by exploration targeting work undertaken by Dr Jon Hronksy of Western Mining Services, on behalf of Archer X, a high quality project generation company owned by Greg Down.
Regional Structural Significance
X17 sits at the intersection of a major feature known as the Central Australian Suture, one of the most important fault structures within the Australian continent, with a major NE-‐trending fault zone that has been variously referred to as either the Lake Mackay or Top-‐Up Rise fault. Both of these faults are considered to be very long-‐lived, metallogenically important structures. Such first-‐order fault intersections are prospective district-‐scale target sites for mineralisation. Similar types of structural intersections characterise the Olympic Dam, Telfer, Tropicana and West Musgrave districts.
The Mesoproterozoic Warumpi Terrane occurs along the Central Australian Suture in the West Arunta region. This terrane is the same age as, and interpreted to be a structural continuation of, the Mt Isa belt. The Warumpi Terrane hosts known copper-‐gold occurrences at Mt Webb and Pokali. These are considered to be intrusion-‐related.
X17 also covers the structural margin of the Neoproterozoic Amadeus basin; the margins of major basins are prospective for sediment-‐hosted copper and lead-‐zinc deposits.
The Amadeus basin is a preserved section of an originally much larger Neoproterozoic basin, known as the Centralian Basin. The prospectivity of the Centralian Basin has already been established because it hosts the Telfer Cu-‐Au deposits, the Nifty Cu deposit, multiple copper occurrences in the Adelaide Fold Belt of South Australia and Encounter Resources’ emerging Yeneena copper project. The Centralian Basin is also important in a global context because it is the same age and character as the basin that hosts the giant copper deposits of the Central African Copper belt, located in Zambia and the Democratic Republic of the Congo.
Local Prospectivity
The X17 Project is located close to Corazon Mining Limited’s Top Up Rise Project (“TUR Project”). Early stage exploration at the TUR Project has identified a large scale mineralised system, demonstrably containing chalcopyrite (copper sulphides), pentlandite (nickel sulphides) and other forms of sulphides, including zones of massive sulphides. Significantly, it is considered that features contained at the X17 Project are significantly more shallow-‐lying than those the TUR Project, as evidenced by the existing geochemical anomaly.
Although targeted on the basis of a regional-‐scale geological interpretation, more detailed geological investigations carried out by Crossbow have reinforced the prospectivity of this area. This evaluation has benefited from the work that the GSWA has completed in this region in recent years.
Most significantly, the GSWA has undertaken regional geochemical sampling over the entire West Arunta region, including the area of X17. This sampling has been undertaken at a very broad scale (sample spacing typically 3-‐4km). Such sampling is unlikely, in this environment, to detect the signature of individual deposits, but may detect regional-‐scale haloes of metal anomalism.
For
per
sona
l use
onl
y
4
A review of the GSWA data indicated that it was necessary to correct or ‘normalise’ the geochemical data for iron (Fe) and manganese (Mn) due to the overprint of these elements in the deeply weathered Australian regolith.
Very significantly, when the data was normalised for Fe and Mn, a large (40 x 20km) surface geochemical anomaly became evident in the X17 project area. This anomaly was principally defined by the elements antimony (Sb), arsenic (As) and lead (Pb). All of these are elements are likely to be associated with a major hydrothermal alteration system which might be prospective for either gold or base metals. Known copper-‐gold mineralisation at Pokali, approximately 75 km's to the east, also shows an anomalous association with these elements. However, the anomaly at X17 is clearly the largest and strongest anomaly so far defined in the entire West Arunta region. The central part of the anomaly is also characterised by an area of high lead (Pb) to thallium (Tl) ratio, which are known to characterise areas favourable for sediment-‐hosted base-‐metal deposits.
Figure 2. X17 Geochemical Anomaly – Regional Context
There is significant independent geological support for the validity and significance of this anomaly. Firstly, some sub-‐surface validation of the anomaly is provided by anomalous Pb and Zn values found in Air Core holes located at the Project margin. These particular holes were drilled during earlier diamond exploration in 1994 by CRA Exploration Pty Ltd. Further independent support is provided by a detailed structural interpretation of the project area (see Figure 2) which indicates that the anomaly is closely associated with a set of NE-‐trending structures interpreted from magnetic data. In addition, GSWA reconnaissance
For
per
sona
l use
onl
y
5
geological work has located outcrops of strongly altered Mt Webb Granite within the area of the X17 anomaly. The Mt Webb Granite has the same age (1648 Ma) as the Mt Isa Pb-‐Zn deposit and is considered to be related to the known copper-‐gold mineralisation in the West Arunta. In summary, given the context of sampling at such broad spacing, this regional-‐scale anomaly is considered to be consistent with the signature of a world-‐class mineral system, where the anomalous metals (Sb, As, Pb) represent the distal halo to a major gold and/or base metal deposit. Very significantly, apart from the Air Core holes referred to above, this anomaly has never been drill tested, nor systematically explored in any way.
Exploration Strategy & Project Milestones
The primary target on X17 is located in an area that has never been previously explored; it is amenable to follow-‐up by low-‐cost regional geochemical surveying to identify drill targets.
The next step proposed is to close up the existing broadly-‐spaced GSWA geochemical sampling to a 1km x 0.5km grid, review the results, then proceed with more closely spaced follow-‐up where required. The objective of this work would be to define a focused gold and/or base metal anomaly for detailed follow up including drilling.
Milestones Date
Native Title and Land Access Agreement Completed
Initial Heritage Survey Scheduled Feb 2014
Cassini makes Stage 2 payment to earn 75% March/April 2014
Commence Phase 1 – Soil Geochemical Program April 2014
Complete Phase 1 (including assay results) July 2014
Proposed Phase 2 Exploration (infill geochemistry + potential Drill Program) Aug/Sep 2014
Crossbow Agreement Details
The Company will acquire up to 75% (the “Interest”) of the shares of Crossbow Resources Pty Ltd (“Crossbow”) via a Share Sale and Management Agreement. This right will become available after satisfaction of a number of conditions precedent relating to Land Access, Native Title and Heritage Survey. On acquiring the Interest, the Company will be required to meet a number of normal expenditure and exploration milestones. Cassini will manage and control all exploration activity on X17 under a management agreement. Cassini has the right to exit the agreement at any stage and its retained equity interest will vary depending on the consideration paid and work undertaken prior to the decision to exit.
CrossBow Director Greg Down said," The Crossbow team are very excited to be partnering with Cassini on X17 in the West Arunta, following on from their solid and effective work in the West Musgrave.
For
per
sona
l use
onl
y
6
Cassini has shown a consistency and competency in their approach to embrace and advance the targeting and gating processes we have applied to bring X17 to this key point in the Discovery process. We believe X17 represents a first order, large-‐scale discovery opportunity and that Cassini is rapidly positioning itself to capitalise on the significant Greenfields Discovery window that is opening and being recognised in WA. They are to be commended for advancing the vision "
Transaction Stages
Stage Outcome
Stage 1 On execution the Agreement, Cassini will pay an option fee of $100,000 to the existing Crossbow Shareholders (the “Vendor”) to allow it the exclusive right to progress through the Stages outlined to acquire and retain up to 75% of Crossbow at completion.
After the payment of the Stage 1 fee, and prior to Stage 2, Cassini can withdraw from the agreement at any time. During Stage 1, Cassini will manage and fund a number of inexpensive early stage activities to enable ground exploration to commence.
Stage 2 On satisfaction of the Stage 1 outcomes, Cassini, at its election, may exercise the right to earn a 75% equity interest (the “Interest”) in Crossbow via the following payments:
• Cash payment of $200,000;
• Shares in Cassini to a value of $200,000 (calculated at the VWAP for the 5 trading days prior to the Cassini exercising its right to earn its 75% interest in the JV); and
• Options over Cassini Shares (7.5 million with an exercise price of 134% of the price determined for the Cassini shares).
During Stage 2, Cassini will undertake the initial exploration program with a minimum spend commitment of $500,000 (includes all costs incurred in Stage 1), or exercise its Stage 3 rights by making the Stage 3 payment. The Company will have 12 months from the commencement of Stage 2 to meet these requirements.
Stage 3 Cassini may exercise the right to retain its Interest via making a Stage 3 payment to the Vendor $250,000 (may be settled in any combination of cash and Cassini Shares at Cassini’s election). In order for the Cassini to retain its Interest it must, within 3 years from the commencement of the Agreement:
• define a JORC compliant resource at the Project; or
• spend a minimum of $3 million on exploration on the Project (including all costs incurred in Stage 1 & 2).
If Cassini does not meet the Stage 3 milestones, it will be required to transfer 50% of its equity interest back to the Vendor, leaving the Company with a 25% equity interest in the Project.
Stage 4 Subsequent to completion of the Stage 3 milestones, Cassini retains its Interest by completing a Pre-‐Feasibility Study, or similar, as agreed by the Vendor and Cassini.
At the completion of this Pre-‐Feasibility Study, Cassini will pay the Vendor $3.0 million to be settled in either cash or Cassini Shares or any combination thereof ($1.5 million at the election of the Vendor and $1.5 million at the election of the Company).
If Cassini does not meet the Stage 4 milestones or payment, it will be required to transfer 50% of its equity interest back to the Vendor, leaving the Company with a 25% equity
For
per
sona
l use
onl
y
7
Stage Outcome
interest in the Project.
Post Stage 4 After the Stage 4 payment, Cassini will retain the Interest. The Vendor will be free carried through to completion of a Definitive Feasibility Study, at which point each Crossbow shareholder will be required to fund additional expenditure requirements in proportion to their equity interest or elect to convert to a Royalty.
Further information: Cassini Resources Richard Bevan Managing Director Telephone: +61 8 9322 6569 Email: [email protected] About Cassini
Cassini Resources Limited (ASX: CZI) is an Australian resource exploration company with a dual focus; with gold projects in Nevada (USA) and base metals prospects in Western Australia.
The Nevada projects represent a near term opportunity for relatively low risk exploration success in one of the world’s pre-‐eminent mining jurisdictions. Nevada has a history of recent multi-‐million ounce discoveries despite a mining history of over 150 years.
Cassini aims to explore and progress its key projects, and to identify additional projects that are commercially attractive with the aim to increase shareholder value.
Competent Persons Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Johnson, who is an employee of the company. Mr Johnson is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Johnson consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
For
per
sona
l use
onl
y
Related Documents
