Cassini Resources has entered an option agreement to acquire the Yarawindah Brook nickel/copper/cobalt project in Western Australia (WA) as part of its strategy to expand its existing portfolio.
The agreement will enable the company to earn into the project through private company Souwest Metals.
The deal was signed at a time when the West Musgrave joint venture (JV) with OZ Minerals is advancing to the Stage II of the earn-in process.
Cassini executed a JV agreement in October 2016 with OZ Minerals to fast-track development of its West Musgrave project.
Under the latest agreement, Cassini can earn an 80% equity interest in the Yarawindah project by paying an option fee of $50,000 (including reimbursement of costs) with the commitment to invest a minimum of $250,000 on the project before 30 March next year.
If the company intends to advance and purchase 80% stake in Souwest, Cassini will be required to make an additional payment of $300,000 in cash or shares.
Located nearly 130km north-east of Perth, the Yarawindah Brook project was subjected to limited nickel, copper and cobalt exploration.
Earlier drilling operations at the site identified primary nickel and copper mineralisation over a strike length of at least 2km.
Cassini has procured all earlier drilling and geophysical surveys data into a consolidated database.
Re-modelling this data has shown that multiple EM conductors have not been tested by previous drilling providing scope for additional exploration targeting massive nickel-copper-cobalt sulphide.
Initially, the work programme will include an airborne VTEM survey to expand EM coverage over the entire mafic-ultramafic intrusive, as well as test beyond the depth of the previous system.
An RC drilling programme is also expected to be carried out in the second half of the year.