Here's text from the annual research report by Miningscout translated from German (thanks google).RESEARCH STUDY (UPDATE)CASSINI RESOURCES LTD.
APRIL 25, 2019
Company profile
The focus of Australianexploration and development company Cassini Resources Ltd. (ASX: CZI, FFM: ICR, ISIN: AU000000CZI9) isbased on base and industrial metals. The company has several projects in WesternAustralia. WestMusgrave, one of Australia's largest nickel and copper sulfide developmentprojects, has a joint venture partnership with OZ Minerals. A prefeasibility study is expected in themiddle of 2019.
Investment Approach
For the coming decade,annual growth rates of 40% are forecast for electric cars worldwide, which willsignificantly increase the demand for battery metals. In addition, stationary energy storagesystems are constantly evolving. Cassini Resources has promising nickel andcopper projects in Australia in this market. An existing JORC-compliant resource estimatehas been recently improved and the completion of the prefeasibility study forthe West Musgrave project is scheduled for mid-2019. A positive scoping study has been availablesince the end of 2017. Theproject is one of the largest nickel deposits in Australia. The cooperation with the Australian copperproducer OZ Minerals currently also provides financing security. The possible start of production is currentlyplanned for the second half of 2022. Speculative investors can still takeadvantage of entry opportunities into the stock, taking into account a holdingperiod of about three years.
Research Update
Cassini Resources Ltd. isan Australian exploration and development company specializing in base andindustrial metals. hasmade significant progress on its development projects since the date of thefirst research on April 24, 2018. Reason enough to take a closer look at thecompany after just one year.
Project progress on WestMusgrave
A three-stage joint ventureagreement has been signed with the Australian top company OZ Minerals (ASX:OZL) to develop the company's largest and most important Western Australianproject, which has large-scale nickel, copper and cobalt mineralization. It provides for increasing ownership interestin OZ Minerals, which will transfer up to 70% of the project to OZ Minerals , depending on the achievement of certain goals andinvestments at prescribed levels. In April 2019, OZ Minerals also reached thelast level and is now involved in the project with 70%. Significant progress in project developmenthas been preceded by this status thanks to the generous use of OZ Minerals. The West Musgrave project ranks high in thetop rankings of Australian companies.
Babel and Nebo
The focus from the outseton the two project parts Babel and Nebo was based on their excellentmineralization and was subsequently developed into a significant deposit fornickel deposits. Atthe time of the initial research in April 2018, there was still a commonresource of 283 million tons from November 2017, which according to the latestestimate was slightly reduced to 238 million tons. The reason lies in the extensive confirmatorydrilling of the past year. Theseallowed the knowledge to increase into the orebodies, and it was taken intoaccount in the new pit design. Theimproved, new and more economical mining plans resulted in a more secure butslightly lower cut-off rate with the same cut-off grade of 0.25%. At the same time, however, tonnages were alsoincreased by 26% from "inferred" to the higher "indicated"category. Theimproved resource now has a high 59% in the indicated category.
The quality of themineralization in hole CZC0285 with 23m to 2.91% Ni, 1 , 13% Cu, 0.09% Co and0.47g / t PGE has impressively confirmed the world class level and projectpotential. Metallurgicaltests in 2018 have also shown that the by-products gold, palladium and platinumcan be expected to achieve both improved grades and recovery rates from the2017 scoping assumptions, which should have a positive impact on the economicsof the project. Asa result of the advanced development, the schedule was also specified untilpossible production. Atthe time scheduled until the start of production, even if it is still aforecast from today's perspective, was still held.
Development was alsoexcellent in other destinations on West Musgrave in the reporting period.
Succoth
Alone on the sub-areaSuccoth a resource of 156 Mt with 0.60% Cu and 0.15g / t PGE could be defined. However, as already recognized, this part ofthe project does not even begin to show its true power and is therefore one ofthe main development areas for the year 2019. Management estimates that Succothalone has many more massive nickel mineralization available and thus thepotential for decades of mining even if it is already ranked among the top 10Australian deposits.
OneTree Hill
On the project part OneTree Hill exists a copper-rich and massive sulfide system, which, however,still awaits its continuous development. This was determined in 2018 on the occasionof magnetic resonance examinations. The first exploration wells are planned for2019, which are expected to provide initial insights into the location andnature of mineralization structures.
YappsuProject
Although significantprogress was made on Yappsu in 2018, overall the project is still at a veryearly stage of development. With 6.45m to 1.67% nickel and 1.07% copper and80.3m with 0.44% nickel and 0.44% copper were already recoverableMineralization, but more drilling is needed to enable a geologicalinterpretation. Forthis part of the project, further drilling is planned starting around mid-2019. Management is optimistic that themineralization on Yappsu is very similar to that of Nebo-Babel and may point toa similar development as Nebo-Babel
OtherDevelopment Projects
West Zinc Project AruntaCassini has discovered a number of potential targets on the West Arunta Projectover the last 4 years, and has completed a small drill program in October 2018to test geochemical and geophysical targets for the first time. Other zinc anomalies were detected, but theirexploration was still strung for the development of the main West Aruntaproject.
Gold Project Mount SquiresPrevious drilling at Mount Squires already included 15m at 2.3g / t Au at 31m,including 5m at 4.7g / t at 34m and 12m at 1.3g / t Au at 25m, including 5m2.0g / t at 25m depth, found. Buteven on this project, the exploration is sparing. According to recently acquired geophysicaldatasets, the projects are only based on evaluation of data, mapping andrecording of possible drill targets. A field program will complement the work year2019 in addition.
The nickel-copper-cobaltproject Yarawindah Brook Already in the research of 2018 the option was addedto the Yarawindah Brook project and a processing in the same year in prospect. The fact is, however, that due to a varietyof audit tasks and explorations as pre-decisive measures only with April 2019,the 80% takeover took place. Theproject is now a fixed part of the project portfolio of Cassini Resources. The 146 km² project is located about 130 kmnortheast of the city of Perth and is still relatively unexplored to this day. Successful drill holes from 2007 like 7m with1.29% Ni, 0.21% Cu and 0.06% Co and 3m with 2 , 70% Ni, 0.80% Cu and 0.19% Cohave already suggested that this project could provide similar mineralizationstructures as the West Musgrave Project. Following complementary magnetic measurementson the ground and from overflights, further promising anomalies have beenidentified, giving Cassini Resources the option of 80% acquisition. The first holes are planned for 2019, butthey can only be started once the landowners have cleared the access roads tothe project and received the approvals required for drilling. For the board, the granting of this projectmeans a low-cost entry into a first-class exploration project with highpotential.
PlannedTasks for 2019
As an active partner of OZMinerals, we continue to work intensively on developing and raising the project value of West Musgrave. At the same time, negotiations are alreadyunder way with various financial partners regarding the financing of theproduction facility in the current year. The focus here is on minimizing the dilutionof the share structure. Inthe side projects is worked so far, that one tries to make valuable discoveriesfor later detail research, without immediately following them.
FinancialData Overview
Since our Initial Coveragestudy in April 2018, Cassini Resources has achieved a variety of operationaladvances in its projects. Inparticular, the work on the prefeasibility study for the main project WestMusgrave was positive. InOctober 2018 it was announced in advance that the ASX100 joint venture partnerOZ Minerals was able to increase its stake to 51% as planned after investingAUD 22 million in the project. Thiswas only scheduled for half a year later in the joint venture agreement. In April 2019, OZ Minerals increased itsstake 14 months ahead of schedule to the targeted 70% of the project after atotal investment of AUD 36 million. This underscores the positive progress in theWest Musgrave project and demonstrates progress towards key milestones in thecompany's project development. Theperformance of the share was correspondingly positive. Since then, the new price level has proved tobe stable, despite market volatility. Following a resource update for West Musgravein April 2019, the completion of the Prefeasibility Study for the mid-year 2019project is planned. Apositive scoping study was submitted in late 2017. As a result of the joint venture, CassiniResources has less additional capital requirements and has sufficient capitalfor its upcoming operating targets. At Cassini, the financing package with itsstrong financial partner OZ Minerals limits the regular capital increasescustomary for explorers. Thus,in addition to the inflow of AUD 2.5 million at the end of 2016, it was notuntil August 2018 that a capital increase of more than AUD 3.9 million net wasmade. Currently,another placement was completed in April 2019 with just under A $ 6.6 millionnet. Withthis strengthened cash position, Cassini is well funded for a subsequentdefinitive West Musgrave Feasibility Study and for the further development ofthe three side projects. Thecurrent cash holdings in April 2019 amount to approx. 9.5 million AUD. The share is thus quoted at about 5 times thecash balance.
The West Musgrave projectof Cassini Resources / OZ Minerals is one of the largest nickel sulfidedevelopment projects in Australia. Compared to other Australian nickel projects,the project further strengthened its excellent position in project ranking fromour initial study.
Looking at West Musgravefor the copper-equivalent resource size, the project is already taking theleading position among Australian copper projects (see Figure 3).
The possible start ofproduction in the West Musgrave project is currently scheduled after completionof the feasibility studies and financing from the second half of 2022.
As a general rule, every exploration and development companymust adhereto theprecautionary principle thatthere is no guarantee that a company's projects will eventually be implementedand brought to production. However,once Cassini has reached the prefeasibility level and economic data on WestMusgrave is available, attention will also be drawn to the company, forexample, by larger investment banks.
Conclusion
If the potential of the main project West Musgravewas already partially apparent in 2018, the project has undergone significantdevelopment thanks to the strong and consistent commitment of JV partner OZMinerals. With the publication of the mid-year preliminaryeconomic feasibility study, the project should be able to document a clearstatement on quality, cost-effectiveness and risk minimization. The JV relationship with the Australian top partnerOZ-Minerals runs optimally and success-oriented. On the positive side, all other projects were mostly aligned with the mainproject, which saved significant capital resources. The recent 80% cost-effective acquisition of theYarawindah Brook nickel-copper-cobalt project is currently not a major burdenfor Cassini Resources, but rather a good strategic decision and an opportunityfor a future corporate footing. The overall positiveassessment of Cassini Resources has therefore continued to strengthen in thelast 12 months.
