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ABC Article regarding CZI Mine Development

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07/06/17

03:23

Post #: 25137585
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Found this article during some late-night research, courtesy of ABC Goldfields-Esperance. Thought I'd share with some fellow shareholders.

https://www.facebook.com/ABCGoldfieldsEsperance/posts/10154469312116712:0

FEASIBLE OR HOT AIR?: Australia could soon have a major mining operation powered by wind.
Feasibility studies for a hybrid wind and diesel power station are under way for the remote Nebo-Babel nickel-copper project in central Australia.
A 30 megawatt station is being considered for the $520 million mine development, near the WA, South Australia and Northern Territory borders.
A wind mast will be installed to collect weather data as part of the feasibility work, which should be completed by September.
Cassini Resources managing director Richard Bevan says if it goes ahead, it would be the first mine in Australia powered by wind turbines.
"The project's in a really good spot for wind, so we assessed wind and solar, and wind came out looking like it was the most advantageous,” he said.
“As far as we understand, there's no other projects with that kind of power solution."
About $100 million worth of exploration has already been completed at Nebo-Babel, which was discovered by Western Mining Corporation in 2000 and ranks as Australia's biggest undeveloped nickel-copper deposit.
Cassini acquired from BHP Billiton in 2014 for $250,000 cash, a 2 per cent net smelter royalty and a $10 million cash payment due 12 months after production begins.
The existing resources at Nebo-Babel are under shallow cover — less than 50 below the surface — which could potentially lead to the development of a low-cost open pit operation.
Mr Bevan said solar power is also being considered as part of a mine development.
"We've assessed a range of different options and what we'll do is choose the one which we feel gives us the best power delivery mix,” he said.
“We haven't ruled out solar but from the work we've done in the past it showed the wind was much better due to the location we were in."
The project took a quantum leap forward last August when Cassini signed a $36 million deal giving copper and gold miner Oz Minerals the right to earn up to 70 per cent of the West Musgrave project, which includes Nebo-Babel and the Succoth copper deposit.
The agreement requires Oz Minerals, which operates the Prominent Hill copper-gold mine in South Australia, to spend an initial $3 million on a scoping study.
If Oz Minerals elects to proceed, it will commit $15 million towards a prefeasibility study and $4 million in regional exploration to earn a 51 per cent stake.
An additional investment of $10 million towards a feasibility study and another $4 million for exploration will earn Oz Minerals a 70 per cent interest.

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CZI Price at posting: 6.3¢ Sentiment: Buy Disclosure: Held
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